How can we help you?

Loans are secured against property, and LendInvest conducts due diligence. However, there is no compensation scheme if an investment fails. That is why these investments are considered higher risk – and only open to eligible investors who understand the risk they are taking.

Yes. While LendInvest takes security over the properties, market downturns or unsuccessful recoveries could lead to losses. This is why these investments are only available to eligible investors who understand the risks they are taking.

Due to the commercial nature of bridging finance, extension requests are not uncommon and the reasons for the requests can be wide-ranging. The most typical reasons include:

• Planning applications have taken longer than expected to obtain.
• Refurbishment works have been unexpectedly delayed (eg the delivery of new windows is taking longer than expected).
• The borrower is waiting to exchange on contracts where a sale has been agreed.
• The borrower requires additional funds and/or time to complete his project (eg work to the building’s foundations was necessary but unforeseen at the time of applying for the loan).
• The borrower is waiting for a new lender to complete their due diligence before refinancing the loan.
• The buyer of the borrower’s property pulls out at the last moment, forcing the borrower to put the property back onto the market.
• The new lender refinancing the property pulls out at the last moment, forcing the borrower to find another new lender.

 Some borrowers refinance their loans with alternative lenders or extend their terms. This can delay capital return to investors.

If the borrower is unable to meet their obligations, LendInvest may extend the loan, reset it with additional underwriting, or take enforcement action through an appointed insolvency practitioner.

 When a loan passes its redemption date, LendInvest’s Special Servicing team assesses appropriate actions, which may include rate increases, appointing a receiver, or initiating legal proceedings. We try to focus, though, on helping the borrower complete their project – through elements like refinancing – as it is better for you, the investors, if the project can reach completion and generate the returns and subsequent liquidity that is needed to pay you back.

LendInvest conducts rigorous due diligence, including borrower credit checks, property valuations, final valuations and stress-testing of the investment. However, all investments carry inherent risk. Please find further details on our approach to risk here.

 LendInvest has a risk mitigation process, including repossession of the secured property. However, investors may face delays in capital recovery and potential losses depending on market conditions.