CrowdLords
Bridging the gap between investors and professional UK property owners. CrowdLords pool together resources so more people can own a property in the UK, rather than fewer. For those who are interested in becoming a landlord or developer, CrowdLords can source and provide the funds that people may not be able to acquire on their own.
They operate an investment model whereby the property is held within an SPV (Special Purpose Vehicle) – a limited company. Each property is funded by a combination of equity and debt, where possible by the crowd.
CrowdLords provide investments in property development and rental properties. Property development is broken down into 4 products: Senior Debt (1st Charge), Mezzanine, Junior Debt (2nd charge) and Equity investments.
Rental properties can generate a regular income as well as capital growth if the value of the property increases over time. These investments tend to be Equity. As an SPV shareholder, the lender can share in profits through quarterly dividend distributions and then at the end of term, when the property is either sold or refinanced, the lender will receive a share of any capital growth (after-tax).
What happens if CrowdLords becomes insolvent or ceases trading
As each property investment is separately ring-fenced from CrowdLords the SPV the lender is invested in will continue and the independent director appointed to represent the SPV would remain in place. Any funds that are not invested are held in a separate bank account that is ring-fenced from the monies of CrowdLords and will be returned to investors in the event they fall into distress.
Fees
There are no fees charged to the investor instead fees are charged to the sponsor. Charges for Equity investment are as follows: £1000 listing fee charged to the sponsor, a success fee of 5% - 10% of the total funds raised, a handling fee of 1% of all income paid out to the shareholder and a Growth Fee of up to 10% of the Net Profit before Tax and they state that this is only taken if the project is profitable.
An arrangement fee of 1% - 3% is charged for Debt Investments and an exit fee of between 1% and 3%
Investor Overview
- Minimum investment from as little as £1000.
- Invest from new build properties, commercial developments and buy to let.
- Choose between equity or debt investments.
- IFISA available
- * correct as of 10/03/2020
Lance Levy Farmhouse Wildmoor Lane, Sherfield-On-Loddon, Hook
RG27 0HB
08868588
company number
30/01/2014
incorporated 10 years
Officers
Richard Barry Bush
Appointed: 30-01-2014