Property experts, Mike Bristow, Paul Crain, Andrew Hall, Niraj Shah and Simon Zutshi have come together to launch a new property peer to peer lending platform, CrowdProperty, which aims to raise.
< 
div>Property experts, Mike Bristow, Paul Crain, Andrew Hall, Niraj Shah and Simon Zutshi have come together to launch a new property peer to peer lending platform, CrowdProperty, which aims to raise £20million from private individuals in its first financial year.
CrowdProperty is designed to facilitate loans between private individuals and property professionals.
The team of five co-founders who together own and run the business have over 70 years’ property market experience and include high-profile property author and speaker, Simon Zutshi, founder of the Property Investors Network with over 23,000 private property investor members.
Borrowers can apply for up to 100 per cent finance on new developments at 9-11 per cent p.a. or up to 80 per cent loan to value for refinancing at 5-6 per cent p.a, depending on a set of proprietary criteria.
Simon Zutshi, founder director of CrowdProperty, explains: “Our inspiration for CrowdProperty came from a very simple understanding of the current problems facing many people in a climate of exceptionally low interest rates and increasingly tight lending restrictions from traditional high street lenders.
“Many property professionals in the UK were not getting the money they needed to make profitable property developments happen and most everyday people were not getting as much interest as they would like from their savings. The answer was simple: give people a better return on their money by allowing them to directly lend it to property professionals looking for funding”.
How it works
The platform is aimed at two different groups of people. First and foremost, the ‘lender’; private individuals with £500 or more seeking to achieve higher returns (5-11 per cent gross) on their money than most traditional savings accounts.
Secondly the ‘borrowers’ or property professionals, that wish to borrow money from the crowd of lenders to finance a new property project or re-finance an existing one. This includes development projects, project refinancing and buy-to-let investment refinancing.
All loans are secured as a first legal charge against the property asset.
All new projects on CrowdProperty are put through extensive due-diligence and screening by a team of property experts to ensure they represent a robust and secured opportunity.
Once it has been CrowdProperty approved, the project is added to the website’s projects section where private individuals (lenders) have the opportunity to pledge money.
Contributions are paid directly to the Company’s solicitors and are only taken once the funding target is fully subscribed.
CrowdProperty takes a one-off 3-5 per cent arrangement fee from property professionals (borrowers) and passes the full amount of the gross interest (5-11 per cent p.a.) payable on the loan to the crowd of private individuals (lenders).
Once the project is financed, it is carefully monitored by the CrowdProperty experts as it progresses to ensure money is being used correctly and the project is on target to reach or surpass its success criteria.
B&C broke the news in March that Pin notified its members of the platform's launch and informed them of its debut refinance project.
Leave a comment