We understand that investors may sometimes wish to release capital from their investment before that investment reaches maturity. And with the upcoming launch of our secondary market, scheduled for the week beginning 15 May 2017, investors will be afforded the opportunity to do so.
An investor will soon be able to offer existing investments for sale to other investors in the secondary market. They may offer the full investment, or parts of it. Our system will also support multiple parts from the same investment being sold separately, to potentially increase the chance of finding a buyer sooner.
For example, an investment of £20,000 may be offered for sale
Investors will be able to view loan parts for sale on the secondary market, along with an indication of the interest due to the investment over the remaining term of the loan.
Our loans pay interest monthly in arrears, and as such the sale price is adjusted daily to account for the interest accrued to the seller on that day of the month.
Any investors with sufficient available funds in their account can bid to buy the loan part, which will then be sent to our administrators for approval.
After a successful secondary market sale, the seller’s dashboard will show a record of the sale, along with a reduced investment in ‘My Investments’ if any remains.
The buyer will find their investment alongside any existing investments from either the primary or secondary market place in the ‘My Investments’ section. In future, the buyer may also offer all or part of his loan for sale on the secondary market.
We look forward to sharing more new developments with you in the near future.
Our blogs are for information purposes only. This content is not financial, legal or tax advice. Should you require any advice in relation to the earnings you make from LandlordInvest we recommend seeking independent professional advice. The information in this blog is correct at the time of posting.
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LandlordInvest Limited is authorised and regulated by the Financial Conduct Authority (FCA) (FRN 660926). LandlordInvest Limited is not covered by the Financial Services Compensation Scheme (FSCS).
Loans provided to borrowers through LandlordInvest are provided solely for business purposes. Loans are therefore not regulated by the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974. You should seek independent legal advice if you are in any doubt as to the consequences of the loan not being a regulated agreement under those Acts.
LandlordInvest Limited (Company No. 09245725), registered office 330 High Holborn, London, WC2A 1HL
