LandlordInvest

LandlordInvest is a peer-to-peer lending platform that enables people to invest in residential, commercial, and semi-commercial bridging and development loans.[1][2][3] The platform's target audiences are professional property investors and landlords. It was the first residential property-backed Innovative Finance ISA made available to UK savers.[4]

LandlordInvest Limited
TypeLtd.
IndustryFinancial technology, Peer-to-peer lending
FoundedOctober 2014
FoundersFilip Karadaghi
Nik Smirnovs
Joe Vallender
HeadquartersLondon, UK
Area served
UK
Key people
  • Filip Karadaghi CEO
  • Joe Vallender CTO
  • Nik Smirnovs CFO
ProductsBridging loans, Development loans
Websitelandlordinvest.com

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 of 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 2017 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 more than £5m across 25 bridging and buy-to-let loans.[13] It stopped offering buy-to-let loans in December 2022.

Filip Karadaghi, chief executive of LandlordInvest, was listed as one of the 50 most influential people in the UK's P2P sector in November 2018.[14]

In November 2019 LandlordInvest passed the £8m lending milestone, where investors funded £8.7m of loans with £6.7m of repaid capital.[15]

Another lending milestone was passed by the lending platform in November 2020 which, at the time, had lent more than £10m in residential and commercial real estate loans to professional property investors.[16] The platform had lent out over £17m and paid investors over £1.7m in interest as of June 2023.[17]

4thWay, the world's first ratings and research agency for online lending, such as P2P and marketplace lending, rated LandlordInvest "Exceptional" in May 2021.[18]

Business Model

LandlordInvest is an online marketplace that matches professional property investors and landlords looking for financing with investors that are looking to invest in asset-backed products with a monthly income.[19] The platform provides secured borrowing to landlords seeking between £30,000 and £750,000.[20] The minimum investment amount is £1,000, which was increased from £100 in July 2021.[21] 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.[22]

Returns

The platform is holding out the prospect of returns of up to 12% per annum.[23] 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 in sales, with a total of 1,393 loan sales completed and an average transaction value of £730.[24] As of November 2019, there has been £2.3m of secondary market sales on the platform.[15] By April 2023, investors had traded over £5m between each other.[25]

IFISA

LandlordInvest was the first P2P lender to offer a property-backed IFISA.[26] 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.[27] LandlordInvest's Innovative Finance ISA offers returns of up to 12.3% per annum.[27]

References
  1. Carol Lewis (21 January 2017). "Back innovation and benefit from tax perks". The Times. Retrieved 17 May 2017.
  2. Patrick Collinson (25 March 2017). "Is an Isa the best home for your nest egg?". The Guardian. Retrieved 17 May 2017.
  3. Sonia Sharma-Karia (13 June 2023). "LandlordInvest eyes development loan growth". Peer2Peer Finance News. Retrieved 9 August 2023.
  4. "LandlordInvest makes innovative finance ISA flexible", Wealth Adviser, 22 February 2017, retrieved 17 May 2017
  5. Sam Barker (21 December 2016). "One to One: Filip Karadaghi, chief executive, Landlordinvest". Mortgage Strategy. Retrieved 17 May 2017.
  6. "P2P Lending Platform Landlordinvest Secures Full FCA Authorisation", Retail Banker International, 7 December 2016, retrieved 17 May 2017
  7. Anna Brunetti (17 May 2017). "LandlordInvest launches secondary market". Peer2Peer Finance News. Retrieved 17 May 2017.
  8. "Awards 2017 Winners", Property Wire Awards, retrieved 24 May 2017
  9. Marc Shoffman (4 July 2017). "LandlordInvest raises seed funding from property investor". Peer2Peer Finance News. Retrieved 4 July 2017.
  10. Marc Shoffman (17 July 2017). "LandlordInvest reaches £1m lending milestone". Peer2Peer Finance News. Retrieved 17 July 2017.
  11. Suzie Neuwirth (31 July 2017). "LandlordInvest hits £2m milestone after completing largest loan to date". Peer2Peer Finance News. Retrieved 31 July 2017.
  12. Jordan Williams (5 December 2017). "One-year-old P2P platform publishes loan book". Bridging & Commercial. Retrieved 5 December 2017.
  13. Martin Greenland (18 June 2018). "LandlordInvest passes £5m lending milestone". Bridging & Commercial. Retrieved 25 June 2018.
  14. P2PFN team (1 November 2018). "The Peer2Peer Finance News Power 50 2018". Peer2Peer Finance News. Retrieved 19 February 2019.
  15. Marc Shoffman (8 November 2019). "Average LandlordInvest LTV and rates drop as it passes £8m lending milestone". Peer2Peer Finance News. Retrieved 11 November 2019.
  16. Michael Lloyd (11 November 2020). "LandlordInvest surpasses £10m lending milestone". Peer2Peer Finance News. Retrieved 13 November 2020.
  17. Sonia Sharma-Karia (13 June 2023). "LandlordInvest eyes development loan growth". Peer2Peer Finance News. Retrieved 20 June 2023.
  18. Neil Faulkner (25 May 2021). "LandlordInvest Review". 4thWay. Retrieved 3 June 2021.
  19. "About Us", LandlordInvest, retrieved 20 June 2023
  20. JD Alois (5 December 2016). "LandlordInvest Receives Full FCA Authorisation, Plans to Offer IFISA". Crowdfund Insider. Retrieved 17 May 2017.
  21. Michael Lloyd (5 May 2021). "LandlordInvest to raise minimum investment amount". Peer2Peer Finance News. Retrieved 24 November 2021.
  22. "How it works", LandlordInvest, retrieved 17 May 2017
  23. Rupert Jones (18 February 2017). "A new Isa is offering tax-free returns of 12 % - so what's the catch?". The Guardian. Retrieved 17 May 2017.
  24. Marc Shoffman (13 March 2018). "LandlordInvest hits £1m on its secondary market". Peer2Peer Finance News. Retrieved 13 March 2018.
  25. Hannah Gannage-Stewart (14 April 2023). "LandlordInvest passes £5m processed on secondary market". Peer2Peer Finance News. Retrieved 20 June 2023.
  26. Suzie Neuwirth (28 January 2019). "A guide to buy-to-let IFISAs". Peer2Peer Finance News. Retrieved 19 February 2019.
  27. Tim Evershed (2 May 2018). "LandlordInvest hits £2m in IFISA subscriptions". Peer2Peer Finance News. Retrieved 2 May 2018.
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