Details on investments and loans….

The Redfern Capital team is made up of experts in both Property Development and Finance. We have, for many years, invested our own funds into developments across the UK, from small refurbishment projects to large commercial developments. Demand for funds continues to grow, so we have opened our business model to other investors.

We match specific developments to your specific preferences, so that your investment is totally secured, in its entirety, as a first charge security on that specific property. This ensures that your loan takes absolute priority over any other loans the developer may take.

You decide the amount you wish to invest and we pair that with a suitable project. Your own Solicitor makes all the arrangements, and their costs are all covered by the borrower. There is absolutely no cost to you.

You simply enjoy the passive income, safe in the knowledge that your investment is secured against a property of sufficient value. All work is undertaken by your own solicitor.

Property loan investments

The term of any loan you make is under your complete control. You may prefer shorter term bridge style loans, or you may want an income for a longer period. The choice is yours.

The income you will receive for our standard loan arrangements is 12% per annum.

£100,000 made as a development loan for 12 months will realise a monthly passive income of £1,000 for the duration of the loan. £12,000 over the year! Should the borrower decide to repay the loan early, they will still be liable to pay you the full £12,000 interest of the agreed term!

Term and income

You will use your own solicitor to over see all the arrangements, although we have a panel of solicitors who we can suggest if you need our assistance. All your reasonable solicitors fees and associated costs will be covered by the borrower.

Each loan is fully secured as a registered First Charge with Land Registry. This will all be overseen by your solicitor, giving you complete peace of mind.

As these are loans for business purposes, they are not subject to FCA regulation and your solicitor is able to act for you in all aspects of the loan.

The loan agreement is made between you and the borrower, Redfern Capital are not party to the loan, we merely facilitate it.

Legal security

How does Redfern Capital make a profit?

We are completely transparent in our charges. We charge the borrower an arrangement fee which is usually 2% of the loan amount. They pay this to us on completion of the loan.

We also charge the borrower 0.1% over and above the 1% monthly interest payment they make to you. This does not affect the £12,000 per amum income that you receive in the above example.

If you were to make a loan to a developer of £100,000 you would not transfer any money until your solicitor and the borrowers solicitor had agreed the terms, the security and the loan agreement. Only then would you transfer the money to your solicitor in preparation of him completing the loan.

The solicitor would deduct our arrangement fee from the amount he sends to the borrower’s solicitor. This does not change the loan amount, the borrower will still owe you £100,000.

The loan agreement would show an agreed interest rate (in this example) of 1.1% per calendar moth to be paid to you by the borrower. The first payment would be made one month after the loan is completed by the solicitors. These payments would continue, each month, for the duration of the loan.

Each month, you would pay Redfern Capital the agreed 0.1% of the loan amount. You would still retain the £1,000 per month.

This simple, yet effective method ensures that your 12% per annum passive income continues for the duration of the loan.

Because we know when the loan expires, we can already be working on linking you to the next opportunity. This means we can ensure there is very little break between loans, ensuring your income continues.

An example of a loan structure

Example of a £200,000 loan structure:

All legal fees………..……  Paid by the borrower

Land Registry fees……..  Paid by the borrower

Loan agreement interest rate……..   1.1% pcm 

Monthly payment to you……  £2,200.00

Monthly 0.1% pcm fee paid to Redfern Capital ………….…..  £200.00

Net annual return to the investor …… £24,000.00

(1% per month, 12% per year!)

An practical example

We are very happy to answer any further questions you may have about this market-leading passive income stream, backed by first charge UK property security

Message us using the tab at the top of the page and one of our team will contact you to discuss your requirements. We are here to help.

More information?