What is Crowdfunding / Peer-to-Peer Lending?
Crowdfunding / Peer-to-Peer (P2P) is when individuals and/or companies lend to other individuals and/or companies in return for interest payments using an electronic platform.
Crowdfunding / P2P is typically many individuals pooling small amounts of their money together to lend to a specific individual or business for a particular purpose directly, rather than from a bank. Usually, this takes place via a secure payment website platform.
What is Marketplace Lending?
The most advanced lenders in the sector are now calling what was previously referred to as Crowdfunding / P2P, as Marketplace Lending. That is, the business model has moved beyond just being peers lending to peers in relation to small business, and now includes all sorts of major investors and lending requirements representing significant competition to the traditional banking industry.
Central London Capital is pioneering Marketplace Lending with a niche investment product assisting a niche target market with unique security mechanism, where the investment product is secured against real estate in London that is used as first charge security at an agreed interest rate. The mechanism provides an unprecedented level of security in the industry.
Who is behind Central London Capital?
Central London Capital is founded on over three decades of expertise in the international property industry combined in addition to extensive expertise as a UK property litigation Lawyer. Culminating in a highly innovative and unique high yield investment solution for UK Tier 1 (Investment) immigration visa. We have partnered with experts in the fields of Immigration, Accountancy, Business and Education to provide a holistic solution. More detailed information can be found on the About Us page.
Why is the interest rate so good compared to other investment products?
The returns being achieved through the Central London Capital is 5% per annum paid monthly. These rates can be achieved because borrowers require the capital to cover a specific period of time and which represents a financially viable solution compared to complying with traditional mortgage criteria.
What are the fees charged by Central London Capital?
Central London Capital facilitates and manages the investment for the entire period of the six year term until the invested funds have been returned to the Investor. Central London Capital also provides the legal representation for the immigration for the entire six year period. Central London Capital sources the properties to be mortgaged and manages the maintenance, property management and rental of the properties that have a mortgage provided.
The one time Fee is 1% of the invested amount.
Note: There are no performance charges on the income stream of which such charges are common in the industry.
Why does Central London Capital only operate in the property market?
Because of Central London Capital has developed a highly innovative investment product to provide unprecedented security and high returns for investment immigration. We intend to stick with this niche as we know is that there is huge potential for investors and borrowers to benefit from our business if we continue to grow and focus on this asset class.
Is Central London Capital Ltd. regulated?
The Central London Capital business model is to focuses on immigration investment and as such does not deal with investments from within the UK and therefore not required to undertake the significant expense and overheads of being authorised and regulated by the Financial Conduct Authority (FCA) or the Financial Services Compensation Scheme.
Investment through Central London Capital involves an investment with an interest rate receivable, from loans secured against property in the UK. Whilst the underlying loan is secured against property, remember in theory, the value of the property can go down as well as up. Also, past returns are not necessarily a guide to future returns albeit the pressure on the housing and rental market in London is significant and expected to continue to increase. The 5% gross shown for each investment is the net return as there are no other performance or success fees.
Borrowing through Central London Capital involves entering into a six year term mortgage contract that is secured with a First Charge over the property being purchased. The loan amount cannot exceed 80% of the Current Market Value of the property and the property may be repossessed if the repayments on the mortgage are not maintained. Risk to payments is mitigated by the fact that the borrower can not occupy the property and the occupant/tenant must qualify for Rent Guarantee insurance policy to insure the rental income.
Does Central London Capital lend against anything other than property?
We are specialist mortgage lenders. We only lend against property, all of our loans are secured by a legal registered charge against the relevant property.
What is Central London Capital?
Central London Capital is marketplace commercial lender for residential and commercial mortgages.
All loans provided by Central London Capital are secured against residential or commercial property in the United Kingdom with a focus on Central London Real Estate. This security is by way of a registered first charge/mortgage against the relevant property.
Our service allows Investors the opportunity to invest in providing loans and earn a superior return, and provides borrowers with access to funding for a preferred period of time which is much quicker and more tailored to their specific needs than what is available from a bank.
Why invest in Central London Capital loans?
Central London Capital has conceived a unique model to assist the person / family wishing to immigrate to the UK to obtain a significantly higher return that is secured by a First Charge over prime affordable real estate in London.
Is Central London Capital a fund?
There is no aggregating of funds; it is not a ‘pooled’ investment or collective investment scheme. All transactions are loans between the relevant lender(s) and the borrower. As the Investor the investment amount that is specific to your requirement is allocated to providing mortgages for a portfolio of properties to match that specific amount whilst maintaining the maximum 80% of Current Market Valuation criteria.
What happens if Central London Capital stops operating?
In the unlikely event that Central London Capital goes out of business, we have a plan in place that ensures your investments are managed appropriately no matter what may happen in the future.
Client funds are held in a segregated client account with HSBC Bank. In the unlikely event that Central London Capital fails or becomes insolvent, this segregation and other measures taken by Central London Capital ensure that your funds would be distributed to your bank account within 14 working days.
With our loans, each borrower has entered into loan and mortgage documentation, which includes a first charge being registered against the relevant property at Land Registry. The first charge is held at Land Registry in the name of the relevant Central London Capital entity that originally advanced the Investment to the borrower. Upon an investor investing in the relevant loan facilitated by Central London Capital, then the security (in the relevant portion) is held by Central London Capital as trustee for the investor. Central London Capital holds the security in trust and on behalf of the investor so that it can service the loan, and in the worst case scenario, repossess the property(s) in the event of a borrower default. In the event of Central London Capital becoming insolvent, the appointed insolvency practitioner will redistribute the funds to investors following payment of the loans from borrowers.
Is Central London Capital like other marketplace, peer to peer or crowdfunding platforms?
No, unlike other marketplace lending platforms Central London Capital loans are secured against property by way of a legal first charge, which is registered at Land Registry.
Central London Capital is also closely affiliated with Central London Real Estate Ltd and having a profound knowledge of the industry and values and has comprehensive income stream underwriting processes, which is applied to all Central London Capital loans.
We feel that lending on an unsecured basis or secured against anything other than bricks and mortar (property) is a far riskier proposition and should be treated with great care.
Furthermore Central London Capital is unique in the fact that it does not operate a payment platform, instead Central London Capital operate a personalised bespoke service specifically tailored to the individual.
Why do people borrow through Central London Capital not a bank?
The UK mortgage market has been dramatically impacted by the credit crisis of 2007 and 2008. There have been a large number of mortgage lenders leave the market, and many of the mainstream banks are not lending in the UK mortgage market very actively. Many banks are dealing with bad legacy loan books, increased capital adequacy requirements (Basel 3 etc) and changing regulation. This has meant that mortgage lending in the UK is significantly less than half the volume than previously. Furthermore, the pipeline of affordable properties require a specific period of time which has been structured to match the Investment Product.
Is my investment guaranteed?
Investing in supporting the private mortgages is not a risk-free investment and your capital is therefore not guaranteed. In the event of a default, having first charge on the property allows Central London Capital to take possession of the asset(s) with view to sell them as quickly as possible in order to recover the loan, fees, interest and any other associated costs.
However, the structure of our mortgages are extremely unique and innovative. The borrower does NOT take possession of the property, instead the property is placed under property management and rented with a rent guarantee insurance that is purchased in order to guarantee the income stream and monthly mortgage payments.
The properties are screened for affordability and in locations of high rental demand significantly mitigating any risk of vacancy. Should repossession be required, the property shall be allocated to a different borrower and the recovered funds will be allocated to the same or different property in order to maintain the required investment period.
Can I invest from overseas?
If you live outside the UK, you are who we are here to assist.
Who can Invest with Central London Capital?
To be an investor with Central London Capital you must be over the age of 18, completed our ID verification checks and been approved by the Immigration Lawyer.
Can companies invest via the Central London Capital platform?
Corporate entities can invest in loans with Central London Capital however the structure was specifically designed to assist individuals and families to immigrate to the UK.
As with individuals they will need to pass the Identity and KYC checks on the entities and beneficial owners.
Why do I have to complete an identity and KYC check?
We conduct identity and KYC checks on investors to comply with UK Anti Money-Laundering and Know Your Customer regulations and standards. This is standard procedure for financial institutions registered in the UK and we also comply to this code of conduct.
How do I register with Central London Capital?
Is the interest that I earn taxed?
The interest payments that you earn and receive does not have any applicable tax deducted. You are responsible for your own tax affairs.
Can I top-up existing investments with the interest I receive?
You can make a new investment into the same loan, providing there is an appropriate property/s to suit the amount.
Do I have to wait until the loan is fully invested to start earning interest?
Because we allocate properties that are ready to be financed prior to the Investor agreement they are ready for prompt completion, therefore you start earning interest from the day you invest. Interest is paid monthly on the first business day after month end.
What is Auto-Pay?
Auto-Pay is a feature that you can opt into that will automatically send the monthly interest that you have earned to the bank details that you have registered with Central London Capital.