Frequently Asked Questions

How does the Legacy model work?
Legacy will acquire the gross value of your surplus portfolio obligations in exchange for a 'dowry' (or reverse premium) equivalent to your provision and will then work to mitigate your liability.
What can Legacy do that my agent can't?
This is all Legacy does and it has the focus and execution capabilities which they may not. Legacy can work in partnership with your property advisor to achieve the best result.
How much will it cost me to dispose of my portfolio?
This will be calculated as an amount similar to your provision set aside to pay for your surplus properties.
Do I have to pay the reverse premium on Day One of the transaction?
No we can structure the transaction to allow for staged payments.
How does Legacy make its profit?
Legacy backs its ability to beat the market forecast and your FRS12/ IAS37 provision, thus taking you off risk.
Can Legacy provide a guarantee?
Legacy can provide varying levels of security to the vendor, as well as a third party guarantee to support its structure as required.
Can I get my auditors to sign off this type of transaction?
Yes, our record proves this point, but, no doubt it would be beneficial to discuss this point with them.
Does the liability come off balance sheet?
This is ultimately a question you will need to ask your auditors. In certain circumstances we have put in place the arrangements to achieve an off balance sheet solution.
What is the VAT treatment for this type of transaction?
This issue must be reviewed on a case by case basis.
What are the effects of the lease accounting changes?
We are writing an article on the lease accounting changes under IFRS and US GAAP. This can be found in the next issue of our newsletter. Alternatively, call us to find out more.
Will Legacy take on a portfolio which has some/all leases outside of the UK?
To date, Legacy has only taken on leases within the UK and Ireland. We are experts on the UK market & have a professional team who understand it. In the future we hope to develop our knowledge and the ability to successfully acquire leases abroa
Do I need to inform my landlords of this change?
No. This is not legally required. Once the portfolio has been transferred to Legacy, we will deal with all issues including any dealings with landlords with immediate effect.