Loan size, loan term and Loan to Value (LTV at project start and projection through project, based on project status)
We consider loans of between £200,000 and £2,000,000 for developments of between 6 and 18 months
We will consider loans of up to 70% of the value of the property security and with a potential profit of 25% on cost.
The decision to approve placing a project on to the platform is made by the CrowdProperty Investment Committee.
Projects that fall within these criteria are then reviewed in three aspects;
(i) The Project development team including the assigned contractors are interviewed to ensure that they have completed the project timetable and the proposed timeline for completion includes normal contingencies.
(ii) The contractual documentation is reviewed.
(iii) The planning and related regulatory requirements are being met
This documentary and experience review stage can take several weeks depending on the stage the project management team have reached when they propose a development for funding.
All platforms and the companies who run them, such as CrowdProperty, are required by the Financial Conduct Authority to provide for companies to take over the responsibility of running the Platform is the current operator goes into liquidation.
CrowdProperty has arranged for such a facility ( known as a Living Will Service ) should the need arise, you can contact them via the existing CrowdProperty contact numbers and Platform email .
The Financial Conduct Authority require us to point out that in such circumstances there would be no recourse to the Financial Services Compensation Scheme
The lending process is as follows:
We arrange for you to open a designated client account with our money transfer agent. The terms and conditions of this account are sent to you when we accept your pledge. Your money is held in this designated client account with a UK Clearing Bank. This account will be covered by the Financial Services Compensation Scheme (FSCS), as the administrator of the UK's Deposit Guarantee Scheme (DGS).
The amount of interest you can earn is up to 8%
The term of the loan is typically between 6 and 18 months. We have fixed interest rates as its simple fixed rate annual interest, not compound and our due diligence process identifies only good lending opportunities rather than varying the rate for riskier ones.
Each project will clearly state how long the loan period will be for. We agree a fixed loan period with the Borrower. However, property development is a business which cannot always be planned to a fixed timetable and there will be times when it is in both the lenders and the borrowers interest to agree an extension to the loan period. When we do agree to such an extension we advise lenders within 7 days.
This will be a set amount of time. Usually between 6 to 18 months for a development project.