LandlordInvest offer secured lending investments in BTL mortgages or property bridging loans, paying up to 12% gross. LandlordInvest are now authorised directly by the FCA (not as an Authorised Representative), allowing them to offer the Innovative Finance ISA. Since I haven’t invested with them myself, I asked LandlordInvest to answer a Q&A to provide a basic understanding of their offering for P2P Blog.
Key Facts (General):
Expected Returns: 5-12% per annum.
Historic Returns: Platform completed its first loan in February 2017
When did you launch?: 5 December 2016. Our property-backed IFISA was launched 25 January 2017
Key Facts (IF ISA):
Minimum Investment to open ISA: £100
Minimum Investment per loan/investment: £100
IF ISA Fees: No specific IFISA fees, including for ISA Transfers In or Out
Is it a ‘Flexible’ ISA? Yes, our property-backed IFISA is flexible
Do you allow transfers in from existing ISAs?: Yes
Types of Investments: Loans secured by residential or commercial mortgages (buy-to-let and bridging loans).
A Background to LandlordInvest
How did it all begin: what is the background to the platform?
The company was founded by financial services and IT professionals. Two of the co-founders, Filip and Nik, met whilst working for a UHNW family with significant global real estate assets. Whilst working togehther, they spent months discussing various business ideas and decided that they wanted pursue a entrepreneurial path by founding a secured P2P lending platform, as they spotted an opportunity in the market given banks reluctance to lend. They were later joined by the third co-founder, Joe Vallender, LandlordInvest’s CTO.
What makes you different from the other options for P2P Investor’s money?
- Fully FCA authorised
- All loans are secured by property
- Flexible IFISA
- No pre-funding
Is there any sort of Provision Fund/ Insurance against bad debt?
We do not operate a provision fund or have any insurance against bad debt. All loans are secured by property.
Is there an Early Sell out option or Secondary Market?
We do not operate a dedicated secondary market. It is scheduled to become available end of April/beginning of May this year. We currently charge an administration fee corresponding to 0.5% of the total outstanding principal value, provided that we are able to find a buyer for that loan or loan part.
Automated Investment: How easy is it for Investors to maintain their Investment?
Investors have to choose themselves which loan(s) they want to invest in. We do not make any recommendations or offer any tools for automatic allocation.
What plans have you for the future?
Our plan it is to continue to build an investor base, and establish our own niche in an industry that is becoming quite saturated. Our aim is to offer the best risk adjusted returns in the industry.