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  • Peer to Peer Lending

    If I became a lender

    It is possible that we may decide to liquidate our BTL portfolio and would consider lending unto 65% against a property where the owner is proposing to convert into flats in South London

    We would need a consumer credit licence before anyone asks!

    We would as part of the deal get the freehold at the end subject to the long leases. A friend has advised us that the lease when granted should be

    1) 99 years or at the very very most 110 years
    2) The ground rent should rise in line with inflation

    The question I would like to pose is what sort of interest rate we could expect. Our friend says that rates of 1% to 1.25% would be easily achievable. We would be buying the freehold at 15YP (YP = Years purchase) at the end of the project. We then end up with a stream of income akin to an indexed linked annuity.

    We feel that as the developer would be improving the value of the property the LTV would quickly fall making our investment more secure

    We would have something of the order of £800,000 to invest

    Any ideas as to where to advertise ?
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    A private bridger? sure there are plenty of those. Your freehold idea is a bit odd but its a different income model so if it means better rates than your competitors, could be a good USP.

    The biggest distribution is talking to mortgage brokers. If you had more than 800 then a distribution partner would get you a further reach and there are companies to outsource underwriting too also.

    Yes your going to need a CCL but that is under the FCA now, so need to be authorised by them. Your also going to need data protection but your going to need contracts and procedures too... so best talking to a solicitor about this, understanding legalities and requirements and get contracts and procedures established.

    Google association of commercial briding lenders (i think thats its name) and NACFB. May have some resources for you.
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    YOU CAN REACH ME AT BESPOKE FINANCE for HMO Mortgages, Cheap Life Insurance and Limited Company Buy-to-Let on 08009202001