Established in 1983, The Holiday Property Bond (a life assurance bond) offers its bondholders the chance to enjoy fantastic holidays in some of the world’s most breath-taking locations including cosy cottages in the Cotswolds, a castle on the Pembrokeshire coast, a French chateau, luxury villas in southern Spain and even a picture-perfect palazzo in Tuscany.
Included in the Holiday Property Bond’s one of a kind holiday property portfolio are luxury villas, cosy cottages, stylish apartments and historic country houses – there are currently 33 sites across the UK & Europe with Coo Palace, a new property set to join the portfolio in 2020. Each property has a unique character, location and on-site facilities so whether your holidays involve cycling, rambling, bird watching, boating, golfing, angling, sightseeing, sunbathing or simply unwinding with a good book, the Holiday Property Bond is something you’ll be able to enjoy year after year for the rest of your life.
A unique British investment with over 42,000 discerning investors, The Holiday Property Bond offers a more affordable alternative to buying and maintaining a holiday property. The company also prides itself on total transparency and unrivalled flexibility, with bondholders benefitting from access to the full portfolio and not being stuck with the same week of the year, every year. Bondholders are able to pass the benefits on to their children and grandchildren so they will have a lifetime of wonderful holidays to look forward to.
New for 2020, the Holiday Property Bond’s latest heritage site, Coo Palace in Scotland is set to open.
Situated in the south-west of Scotland on the Galloway coastline, Coo Palace is the newest addition to the HPB portfolio and is set to open Spring 2020. An eccentric millionaire, James Brown, built Coo Palace for his 12 prize Belted Galloway cows in the early 20thCentury. Also known as the Corseyard Farm and Model Dairy, it comprised a milk parlour, cart shed and stabling as well as the 23m high water tower. With a keen interest in the Arts & Crafts movement, and a flair for grandeur, Brown decorated his masterpiece with a mixture of the Arts & Crafts, Art Nouveau and Italian styles in mind. It was quite the palace but, following Brown’s death in 1920, sadly fell into disrepair. In 1991 this landmark was A-Listed by Historic Scotland as an ‘important building at risk’ so when HPB took it on, it was clear the restoration had to be done as sympathetically as possible. The team have been working hard to stay true to the styles prevalent in the early 20thCentury and have been working closely too with James Brown’s granddaughter in law Elizabeth Brown, who still lives nearby and has been personally advising on the interior design project.
Once converted and new buildings have been added, Coo Palace will provide 26 properties, comprising of two studios, 12 one-bedroom units, 10 two bedroom units and two three-bedroom units.
For further information on becoming a bondholder visit www.hpb.co.ukor call 01638 660066
Northway Court, Devon Opening 2021
HPB recently purchased an exciting holiday cottage development near Bideford. Here, HPB plans to offer bondholders 18 properties, a refurbished club house with an indoor swimming pool, three new cottages and a reception building, all to be ready for occupation by Spring 2021. This will be another beautiful HPB site, enjoying uninterrupted sea views and within walking distance of a beach.
Further Developments 2020
HPB has purchased an existing and adjacent holiday development with plans to provide 7 new cottages for occupancy in Summer 2020.
Coreggia, Italy & El Pueblito de Alfaix, Spain
Strong demand for trulli holidays in Coreggia, HPB’s Puglia home, continues and the company is looking for more suitable ruined trulli which can be turned into comfortable HPB accommodation. Additional adjacent land at El Pueblito de Alfaix has been purchased and during the Autumn of 2019, work will start to create a new lengths pool, a small gym and two 3 -bedroom villas, with completion planned for Easter 2020. Work will start on the construction of three 4-bedroom townhouses with the benefit of exclusive use of the existing lengths pool.
How HPB works (in brief):
A minimum payment of £5,000 is required (the ‘average’ for 2018 that bondholders paid was £14,100+). There is also a quarterly fee of around £30 (around £120 a year) linked to RPI – this then gives bondholders access to all Holiday Property Bond holiday homes. Every £1 of the initial payment translates into one Holiday Point every year and bondholders can then use these points to book the property of their choice – the exact number of Holiday Points required for a property depends on its location, size and time of travel.
For each Holiday Property Bond holiday, bondholders pay a no-profit user charge (this covers property running, maintenance costs and use of on-site facilities) that is level throughout the year – no high season premiums are charged. As an example, a studio for 2 might cost £300 pw (average), or a 2-bedroom property (sleeping up to 6) £460pw (average).
After an initial charge of 25%, money is invested in a fund of holiday properties and securities and capital is at risk. The fund itself meets annual charges of 2.5% and the investment return is purely in the form of holidays. Bondholders can surrender their investment to the company after two years or more but will get back less than invested because of the charges referred to above, as well as other overheads and charges in the value of the fund’s properties and securities. The Holiday Property Bond has no borrowings and all its assets, being the holiday properties, securities and cash, are controlled by HSBC Trustee (C.I.) Limited.
Holiday points are issued at the start of each holiday year (determined by month of initial payment). Holiday points will show three entitlements – one for the current holiday year, one for the following holiday year and one for the holiday year after that – enabling bondholders to book holidays up to two years in advance. Holiday points are deducted when you book your holiday, based upon the holiday points chart in force at the date of booking. Holiday points can only be ‘rolled over’ once – from one holiday year to the next. If, at the end of the two-year period, bondholders still have unused points from the first year, these will be placed into a 70 day account. Points within this account can only be used for holidays commencing within 70 days of a booking, in which case they will be the first holiday points to be used. Holiday points will only be held in this account for one year, thereafter they will be cancelled.
Here are some examples of how it works in practice (2019 rates):
For two people, holidaying out of season:
A week in Stigliano, Tuscany from 1,480 points
A week in The Trossachs, Scotland from 2,340 points
A week in St Brides Castle, Pembrokeshire from 2,180 points
And in the height of summer:
A week in Rocha Brava, Portgual from 7,870 points
A week in the Lake District from 9,380 points
A week in Le Mont de St Siméon, France from 13,630 points
The Holiday Property Bond also offer a unique money back promise – this is possible when, if a bondholder takes their first Holiday Property Bond holiday within three years of investing and are not, for any reason, entirely happy, they can apply to cash in their investment within 14 days of their return. Whatever the encashment value, the parent company of the issuer of the Holiday Property Bond will make up any difference so that they get back the full amount of their initial payment.
HPB is an investment product. It is subject to charges, capital is at risk, you may not be able to cash in during the first two years and will not get back the full amount invested.
HPB Management Limited (HPBM) is authorised and regulated by the Financial Conduct Authority and is the main UK agent and the property manager for HPB, issued by HPB Assurance Limited (HPBA) registered on the Isle of Man and authorised by the Financial Services Authority there. The trustee of HPB is HSBC Trustee (C.I.) Limited registered at HSBC House, Esplanade, St Helier, Jersey, JE1 1GT. The securities manager is Stanhope Capital LLP of 35 Portman Square, London, W1H 6LR.
Holders of policies issued by HPBA will not be protected by the Financial Services Compensation Scheme if the company becomes unable to meet its liabilities to them but Isle of Man compensation arrangements apply to new policies. No medical examination required. HPB is available exclusively through HPBM who will only charge for their services if you invest. HPBM promotes only HPB and is not independent of HPBA.