BEAT THE SAVINGS CRISIS !! Golfers earn 4.0%pa on your money fixed for 7 years and play free golf.
The scheme has been dreamt up to address several key needs for golfers, particularly retired golfers and to marry these needs with those of Trent Park Golf Club. These are listed below:
- Many retirees buying an Annuity or relying on their bank savings accounts have seen their incomes drop to very low levels
- Bank savings accounts are paying interest rates of less than 1%. Hardly enough to produce a decent income.
- Golf for these people who are living off the interest on bank savings has become much less affordable.
- Members golf clubs are charging about £1,300-£1,500 pa for membership in North London
- A savings account of around £125,000 would be needed to generate sufficient interest income to pay for an annual golf club membership.
- A lump sum of £50,000 would be needed to purchase an annuity to provide sufficient income to pay for the average club membership. Upon death this lump sum belongs to the insurance company and cannot be passed to your heirs.
So how does the scheme work ?
- Golfers buy a 2017 Series Gold Subordinated Unsecured Debenture at Trent Park Golf Club for £30,000 and receive interest of 4.0% pa fixed for 7 years. Interest is paid quarterly in arrears or can be exchanged for FREE golf, FREE range balls and FREE Buggy Hire 7 days a week until Dec 31st 2017.
- Full repayment of the £30,000 principal amount of the debenture is scheduled for December 31st 2017 but can be repaid before at the option of the Club.
- in the event of the death of the debenture holder full repayment of the debenture can be demanded by the estate of the debenture holder annually on 31st December each year on giving 3 months written notice.
- Golfers with debentures are automatically classed as members of Trent Park Golf Club and in return for foregoing the annual interest payments on the debenture will also benefit from the following additional features.
- Free Golf and Range Balls at Trent Park 7 days a week with no payment of green fees and no restrictions on playing times until full repayment of the debenture in Dec 2017.
- Free Buggy each time you play. Many debenture holders will likely be retirees and a FREE buggy is a welcome bonus and worth £20 per round.
Why does it make sense for Trent Park Golf Course to do this ?
- As a way of attracting new members - We believe there are many retirees struggling to afford a membership at private clubs because their incomes have been decimated by ultra low interest rates. This scheme gives Trent Park the opportunity to attract new members away from the Private Clubs and whilst those members will pay nothing for their golf we believe many will also consume refreshments and more importantly introduce guests or new members who will pay green fees.
- Trent Park currently has a 20 year mortgage loan outstanding from Barclays Bank of approx £1.7 milllion dating from Nov 2016. The loan is at a fixed rate currently costing around 4.0% so there will be no difference in interest costs to Trent Park Golf Club. The loan is secured by a Fixed Charge over the Golf Course and Business and represents a conservative loan to value ratio.
- This Debenture Series gives Trent Park the opportunity to diversify its funding sources away from the traditional clearing banks. Trent Park wishes to do this because the 2009 banking crisis has made it clear that it is unwise to rely solely on commercial banks for all sources of funding. A minimum of 75% of the proceeds from this debenture issue will be used to pay down Bank Borrowings with Barclays and a Maximun of 25% for general corporate purposes and thus the Club will have diversified its funding sources at no extra cost.
- Helping our customers to achieve better investment returns on their cash balances is a win/win for them and us.
PLEASE NOTE: YOU MUST SEEK INDEPENDANT FINANCIAL ADVICE IF YOU ARE CONSIDERING AN INVESTMENT OF THIS NATURE.