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CrowdProperty lend £1million
CrowdProperty has today joined the select number of peer-to-peer companies that have lent £1million. According to CrowdProperty just under 2000 lenders have registered on the platform since launch last year.
Here is the full press release:
CrowdProperty (www.crowdproperty.com) today announced it has passed the £1m lending threshold, with a total of £1.43m now raised across four residential property development projects in the UK. Almost 2,000 people have become registered lenders on the platform since its launch on August 31st last year, with 160 of these having lent money to current projects and who are now earning 10% per annum gross interest on their money.
The first property development to go live on the CrowdProperty platform was a pub conversion, creating four residential flats and two commercial units, which took 14 weeks to fund. Since this, the time to complete funding has been reducing as lender liquidity increases, with the fastest fully-funded development to date having taken just six weeks. The company is confident that a one-week timescale will become possible within the next few months as lending appetite continues to grow.
Simon Zutshi, founder director of CrowdProperty, explains:
“Passing the £1m target for lending is a key milestone in our growth strategy but we expect growth to accelerate significantly now that we have so many new, active lenders joining our crowd. With any new P2P proposition it is vital to ensure that early lenders build their confidence with real returns from solid projects delivering great value. Our lenders receive 10% per annum returns on the money they lend. This is higher than many other peer-to-peer lending platforms, which often do not secure the lending and one of the reasons why we always commit to take the 1st charge of the property asset lent against.
“Another exciting development which has recently become available via our platform is the added potential now for anyone with a SIPP or SASS pension to lend to our development projects, providing another angle for many people wanting greater diversity and a solid return on their capital.”
The revenue model for CrowdProperty is straight-forward: borrowers pay a one off 3-5% arrangement fee and pass the full amount of the gross interest (9-11%p.a.) payable on the loan to the crowd of private individuals (lenders). Borrowers can apply for up to 100% finance on new developments at 9-11% p.a., depending on a set of proprietary due diligence criteria. Unlike most P2P lenders, CrowdProperty secures all loans with a first legal charge against the property asset lent against – in much the same way as a bank or building society would.
Since launch 2,000 prospective lenders have registered on the CrowdProperty website and more than 650 potential borrowers have also registered - with almost 100 property projects having already been submitted by potential borrowers for consideration. More than 2,500 people now follow CrowdProperty on social media and anyone with £500 or more can pledge towards the projects and receive potential 9-11% gross returns. Capital is at risk, see website for details.