Insights ·
How UK sourcing fees work
A fee on the pack, figures illustrative until the engagement letter, and an all-in yield that can break.
We charge a sourcing fee. It is not baked into a silent net yield. It sits on the cash stack so you can hate it in daylight.
Worked example (sample)
Packaged £165,000 + works £18,000 + purchase costs £6,500 + sourcing fee £4,500+VAT (illustrative until the engagement letter) = all-in £194,650. Rent £1,150 pcm. Gross yield on all-in = 7.1%.
What breaks it: void, capex overrun, rent 10% light. Rent 10% light is 6.4% on the same all-in. That sentence belongs on the fee page, not in a footnote you never see.
When it is payable
Trigger date — instruction or exchange — is set in the engagement letter. VAT treatment is set in that letter. Per-deal fee on a LIVE pack is gated, because it is part of the instruction, not part of the public advert.
If a sourcer will not put the fee next to works and SDLT-like purchase costs, they are selling a vibe. We sell a stack.
Not financial advice. Sourcing fee. Sample numbers on this site are pack format.