Q & A's

     

Q. What security do I have?
A. Similar to owning property, when you buy fine wine you physically own a tangible asset which holds an intrinsic value.

 

Q. What are the risks within the wine market?
A. The main risk is buying a wine of poor or inferior quality or a wine that is in high supply and low popularity as your wine may not increase in value.  

Q. How do I know which wine to buy?
A. To minimise any speculation or undue exposure our Wine Consultants only recommend wines based on market conditions and Robert Parker’s scoring system.  

 

Q. Which wine is the best to buy?
A. Buy the best quality, low production investment grade wine your budget will allow. 

Q. How long should I hold my wine for?
A. We recommend a minimum 5 year hold to achieve the best gains, the longer you hold a wine the scarcer a wine becomes, which will naturally increase its value as demand outstrips supply.

 

Q. How do I know how what is happening within the market?
A. Once you're a client you will be assigned a dedicated Wine Consultant who will keep you up to date as frequently as you wish with market trends and movements within the market.

Q. Can I meet my wine consultant?
A. Of course, we operate an open door policy. You may meet us either at our Head office in Surrey or at our London office, feel free to book an appointment through our website.

 

Q. How do I know my wine is safe?
A. Once your purchase is complete, we arrange for you to open a personal private bond account where your wine can be transferred and is held in your name as the owner of the asset.

Q. Where is my wine stored?
A. Your wines are held securely with your own personal account within one of the UK’s leading HMRC Government regulated independent bonded warehouse, this is a controlled environment to ensure your wine is kept in prime condition and provenience is maintained.

 

Q. What happens if my wine gets damaged or lost?
A. Your wine assets will be fully insured on an independent policy by the bond or yourself, this means you will be offered a replacement or equivalent value in the unlikely event any loss or damage is incurred.

Q. How do I know the value of my wine assets in the future?
A. As a Client you can request a free valuation at anytime to get an up to date of market trading values.

 

Q. Should I buy wine En-primeur ?
A. En-primeur wine is still in the barrel and subject to speculation as the wine is still young so can change as it develops and matures. Generally it is safer to buy wine that is bottled with a recognised definitive grade or score.

Q. How important is the provenience of a wine?
A. The condition and provenience of a wine can seriously affect the value of a wine, for this reason we only deal original wooden cased wine that is held in bond and has not been shipped overseas or labelled for an overseas market.

 

Q. Where is my money held before transfer of wine?
A. UKV employ a FCA licenced escrow service that operates a Client Account so Client funds are held independently  and are only released upon conformation of wine being ready for transfer or ordered from a supplier if not already held in stock. already held in stock.

Q. What if your Company goes out of business?
A. Once transferred into your own bonded account, ownership is transferred and you are in complete control of your wine assets. UKV have no control or access to your wine.

 

Q. How do I know the value of my wine assets in the future?
A. As a Client you can request a free valuation at anytime to get an update of market trading values.

Q. How long does it take to transfer my wine?
A. On completion of a purchase and receipt of cleared funds into our client account we will arrange for the transfer of your wine and ownership within 30 working days.

 

Q. What is the cost of storage and who pays for it?
A. The cost of storage is approximately £10-12 per case, per annum and invoiced to you directly by the bonded warehouse as the account holder. This charge is made in advance for a 12 month period by direct debit.

Q. How do I resell my wine?
A. You are free to resell your wine through any Merchant or Broker, you have no obligation to sell your wine through UKV and we have no obligation to sell your wine. Should you wish us to sell your wine you should contact our Brokerage Service.

 

Q. Is my wine insured whilst in the bonded warhouse?
A. Each bonded warehouse operates either, an inclusive insurance cover within their storage charge or you will be offered insurance through an independent insurance company that specialises in fine wine insurance to ensure your wine assets are covered.

Q. Can I take my wine out of bond to drink?
A. Should you wish to drink your wine you can request delivery to a location of your choice directly with the bonded warehouse. Please be aware you will need to pay the HMRC Duty and VAT on your wine before it can be removed together with any outstanding storage cost and delivery charge. Please see our section in taxation on duty and VAT for more details.

 

Q. Can I store my wine at home or in my own cellar?
A. We do not recommend this unless you are going to drink your wine within a relatively short period of time. Wine purchased for future resale should always be stored within a bonded warehouse controlled environment to maintain provenience.