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The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

LendInvest Loan Durations Are Getting Longer…Much Longer

Peter Hemple speaks to Rod Lockhart at LendInvest

LendInvest, the peer-to-peer platform for real estate finance/mortgages is expanding rapidly. The firm was originally 'spun out' of Montello Bridging Finance, which formed in 2008.

Rod Lockhart, managing director of the funds division at LendInvest, continues the story: "It was shortly after the banking crisis in 2008 when all of the lenders were running for the back door. The bridging loans Montello offered were up to 12 months in duration and principally for residential but a small amount was also for commercial property. We tended to focus on London and the Southeast at first but we are now looking to expand our business across the UK."

Five years later LendInvest was created, allowing investors to lend a portion of a bridging loan to a property investor, earning far better returns in the process. The company also started offering 3-year BTL loans as well. In the last two years, LendInvest has originated over £610m of loans to landlords and developers for terms lasting one month to three years.

In December last year LendInvest launched a new development finance offering, which provides experienced developers with funding from £200,000, up to £7.5m. Developers can apply for up to 65% of the gross development value (GDV), up to 100% of the development costs and may be eligible for loans of up to 90% of total project costs. Loans last up to 24 months. Interest rates on the product start from 11% per annum, with lending possible for the construction of residential and semi-commercial units.

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