LandlordInvest

LandlordInvest Limited
Ltd.
Industry Financial technology, Peer-to-peer lending
Founded October 2014
Founder Filip Karadaghi
Nik Smirnovs
Joe Vallender
Headquarters London, UK
Area served
 UK
Key people
 Filip Karadaghi, CEO
Products Buy to let mortgage
Bridging loan
Website landlordinvest.com

LandlordInvest is a peer-to-peer lending platform which enables people to invest in residential buy to let mortgages and bridging loans.[1][2] The platform’s target audience is buy-to-let and bridging loan borrowers with a near perfect credit score, that are having difficulties with raising finance from traditional lenders due to a one off adverse credit event in the last five years.[3] It was the first residential property-backed Innovative Finance ISA made available to UK savers.[4]

History

LandlordInvest was founded in 2014.[5] The platform was officially launched in December 2016 when it received authorisation by the FCA.[6] In early 2017 LandlordInvest received an ISA manager approval from HMRC, ahead of similar platforms such as Funding Circle, Zopa, and Ratesetter, becoming one of a few companies to offer tax-free returns to peer-to-peer investors.[1] In May 2017 the platform launched a secondary market which allows investors to sell off their property loan parts.[7] Property Wire Awards listed LandlordInvest as one of three crowdfunding platforms of the year 2017, alongside The House Crowd and Homegrown.[8] In July 2017 LandlordInvest received an undisclosed sum of seed funding from Alan Gabbay, director O&H Properties which currently has a £1bn property portfolio in London.[9] Later in the same month the platform passed the £1m lending milestone and amassed 700 investors since it launched in December 2016.[10] By the end of July LandlordInvest completed its largest loan to date, a £740,741 bridging loan, bringing its cumulative lending to £2m.[11] LandlordInvest published its loan book for the first time on 5 December 2017, marking its one-year anniversary.[12] As of June 2018, the P2P platform has lent £5,209,745 across 25 bridging and buy-to-let loans.[13]

Business Model

LandlordInvest is an online marketplace which matches landlords looking for financing with investors.[14] The platform provides secured borrowing to landlords seeking between £30,000 and £750,000.[15] The minimum investment amount is £100 and the platform’s bridging loans carry a maximum term of 18 months, while the buy-to-let loans have terms of up to five years.[16] Investors lend money to eligible borrowers and receive money from the interest charged on loans, while LandlordInvest covers the costs of running the platform by charging borrowers an arrangement fee on each funded loan and by deducting a servicing fee from monthly interest payments to investors.[17]

Returns

The platform is holding out the prospect of returns of up to 12% per annum.[18] In its first year of operation, LandlordInvest facilitated more than £2.7m of lending through its platform, with an average loan amount of £210,535, an average LTV of 63.7%, and an average annual gross return to investors of 11.1%.[12]

Secondary market

In March 2018 the platform's secondary market reached £1m of sales, with a total of 1,393 loan sales completed and an average transaction value of £730.[19]

IFISA

LandlordInvest reached over £2m in subscriptions for its Innovative Finance ISA after having raised £1.65m in subscriptions in the 2017-18 tax year, an increase of 292.5% compared to the £419,835 of subscriptions made in the previous tax year.[20] LandlordInvest's Innovative Finance ISA offers returns of up to 12.3% per annum. [20]

References

  1. 1 2 Carol Lewis (21 January 2017). "Back innovation and benefit from tax perks". The Times. Retrieved 2017-05-17.
  2. ↑ Patrick Collinson (25 March 2017). "Is an Isa the best home for your nest egg?". The Guardian. Retrieved 2017-05-17.
  3. ↑ Joanne Atkin (8 June 2015). "Peer-to-peer lending platform for near prime property being developed". Mortgage Financial Gazette. Retrieved 2017-05-17.
  4. ↑ "LandlordInvest makes innovative finance ISA flexible", Wealth Adviser, 22 February 2017, retrieved 2017-05-17
  5. ↑ Sam Barker (21 December 2016). "One to One: Filip Karadaghi, chief executive, Landlordinvest". Mortgage Strategy. Retrieved 2017-05-17.
  6. ↑ "P2P Lending Platform Landlordinvest Secures Full FCA Authorisation", Retail Banker International, 7 December 2016, retrieved 2017-05-17
  7. ↑ Anna Brunetti (17 May 2017). "LandlordInvest launches secondary market". Peer2Peer Finance News. Retrieved 2017-05-17.
  8. ↑ "Awards 2017 Winners", Property Wire Awards, retrieved 2017-05-24
  9. ↑ Marc Shoffman (4 July 2017). "LandlordInvest raises seed funding from property investor". Peer2Peer Finance News. Retrieved 2017-07-04.
  10. ↑ Marc Shoffman (17 July 2017). "LandlordInvest reaches £1m lending milestone". Peer2Peer Finance News. Retrieved 2017-07-17.
  11. ↑ Suzie Neuwirth (31 July 2017). "LandlordInvest hits £2m milestone after completing largest loan to date". Peer2Peer Finance News. Retrieved 2017-07-31.
  12. 1 2 Jordan Williams (5 December 2017). "One-year-old P2P platform publishes loan book". Bridging & Commercial. Retrieved 2017-12-05.
  13. ↑ Martin Greenland (18 June 2018). "LandlordInvest passes £5m lending milestone". Bridging & Commercial. Retrieved 2018-06-25.
  14. ↑ "About Us", LandlordInvest, retrieved 2017-05-17
  15. ↑ JD Alois (5 December 2016). "LandlordInvest Receives Full FCA Authorisation, Plans to Offer IFISA". Crowdfund Insider. Retrieved 2017-05-17.
  16. ↑ Ryan Weeks (6 December 2016). "LandlordInvest receives full authorisation". AltFi. Retrieved 2017-05-17.
  17. ↑ "How it works", LandlordInvest, retrieved 2017-05-17
  18. ↑ Rupert Jones (18 February 2017). "A new Isa is offering tax-free returns of 12 % - so what's the catch?". The Guardian. Retrieved 2017-05-17.
  19. ↑ Marc Shoffman (13 March 2018). "LandlordInvest hits £1m on its secondary market". Peer2Peer Finance News. Retrieved 2018-03-13.
  20. 1 2 Tim Evershed (2 May 2018). "LandlordInvest hits £2m in IFISA subscriptions". Peer2Peer Finance News. Retrieved 2018-05-02.
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