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What happens now the loan is fully funded?
We are preparing to send the funds to Proseed Capital, and once they clear you will receive a receipt and begin earning interest. You will receive an electronic copy of your individual bond certificate shortly afterwards.
How do I check my investor classification?
This particular development loan has been designated as only appropriate for clients who have classified as High Net Worth or Sophisticated Investors. You will not be able to make an investment as a Retail (Restricted) Investor.
You can check your investor classification by logging in to your account and navigating to 'Personal Details'. You'll find your classification in the 'About you' section, under your name.
If you feel your circumstances have changed since you last self-classified, you can reclassify by clicking the blue button.
How do I invest?
The development loan is available for funding on the Property Partner platform. To make an investment, go to www.propertypartner.co and navigate to the Properties page. Find the Development Loan Bond - named 'Regent House, Basildon, SS14' and click 'Invest'. Specify the amount you wish to invest, and complete the order.
What is the minimum investment amount?
The minimum investment amount is £1,000. This amount may be to subject to scale back if the loan is oversubscribed in the funding period. If this is the case, your investment will still be accepted.
Can I cancel my investment(s)?
Yes, you can cancel your investment within 14 days of making the investment. Please contact us on +44 (0)20 3696 5600 or email us at support@propertypartner.co to do this.
Do I need to have funds in my Property Partner account in order to make an investment?
Your Investment Amount is required to be in your Property Partner account, subject to you agreeing to the terms & conditions.
When will interest be paid on the loan?
Interest will be paid when the underlying loan is repaid by the developer, typically at the end of the 15 month term.
Do I have to pay tax on the interest I receive?
You will need to treat the interest you receive as you would treat any other interest received on your tax return. UK based private individuals will receive their interest after the deduction of 20% income tax in line with the withholding tax rules on interest bearing savings and investments.
Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary.
International investors are subject to the taxation laws of their country of residence.
What risks are involved in property development loan investments?
Investments in property development loans are considered to be a relatively high risk/reward investments and it's important to understand the risks before investing. Read about the key risks here.
How are the development loans secured?
Property development loans are secured with a legal charge against the development site and are often backed by a personal guarantee from the developer (borrower). The structure of a loan’s security is a key factor in assessing the risk profile of a loan. Common types of security include:
- First legal charge against the development project
- Second legal charge against the development project
- Secured against other property assets owned by the developer
- Personal guarantee from the developer
What happens when the developer repays the loan?
You will be notified by email that the loan has been repaid. Both the capital invested, plus interest accrued, will be paid into your Available Funds.
Can the term of the loan be extended?
The term of the loan can only be extended if agreed between the developer and and our lending partner. This could take place if the development is delayed due to slower than expected progression of sale, and it makes sense to extend the loan agreement rather than attempt to enforce security.
Can the loan be repaid early?
Yes, the developer is permitted to pay back the loan early. In this case you'll receive your capital and interest earlier. The interest will be calculated on a pro-rated basis, subject to a minimum of six month's interest.
Can I get my investment back early?
No, it’s not possible to sell or transfer your bonds. Investors will receive their capital and interest when the loan is repaid by the developer.
Will I be able to sell my holding in the loan on the Resale Market?
No. We are, however, planning to develop this option in the future.
Will I be kept up to date on the progress of the development and subsequent payback of interest and investment?
Yes, our lending partners take a regular hands-on approach to monitoring progress and reporting this back to investors.
What happens if the developer defaults on the loan?
Provision is made to cater for the scenario when a developer defaults on their loan. In the event of late repayment, the developer may be subject to penalty interest over and above the standard rate and ultimately our lending partner can enforce the security to recover funds if required.
How our Property Partner development loans structured?
The investment is structured as a bond.
Watch: Introducing Development Finance
Listen: A Q&A with Proseed Capital
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We have designated this investment opportunity as only appropriate to clients who have self-classified as High Net Worth or Sophisticated Investors. You can check your classification by logging in to your account, navigating to the Personal Details tab under 'Investor classification'. If you feel your circumstances have changed since you last self-classified, you can reclassify by clicking the blue button.
Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however, the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Past performance is not a reliable indicator of future performance. Interest and capital returned may be lower than expected. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Please read Key Risks before investing.
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