What's the difference between an Investor and a LandLord?
We refer to Investors as Crowd Investors and LandLords as Managing Investors within our legal documentation. Although you can of course be both.
Investors assume an investment role only and receive an equity stake in the property in return for their investments.
LandLords manage the property as well as receiving a stake in relation to their investment.
What returns will I receive?
The investments are in Buy-to-let property over a fixed period of time with a view to realising capital growth and/or income. The returns will vary per property and the level of capital growth and/or income is not guaranteed. The projected returns are shown on each property listed. Please note, income and/or capital growth is not guaranteed and the investor will only receive it if the investment is successful.
Who owns the property?
The property is owned by an SPV (Special Purpose Vehicle), with one SPV holding one property.
What is an SPV?
An SPV is a separate limited company, which operates under its own legal status, with its own asset and liability structure.
Who sets up the SPV?
CrowdLords will set up the SPV.
What is the structure of the SPV?
The Investors and LandLord have different classes of shares in the SPV. The LandLord is a Director on the SPV. CrowdLords also appoints an Independent Director who is responsible for overseeing the property and the performance of the LandLord.
When will I receive my share of income?
On the condition that the SPV generates income Investors will receive a quarterly dividend according to their share as calculated by the Nominated Accountants and the LandLords will receive their share of income according to their shareholding plus any surplus income remaining from the payments after costs. Please note, income is not guaranteed and the investor will only receive it if the investment is successful.
When will I receive my share of capital growth?
On the sale of the SPV at the end of the agreed term the Nominated Accountants will calculate sums due to Investors and LandLords based on agreed percentages. Please note, capital growth is not guaranteed and the investor will only receive it if the investment is successful.
What if it's not a favourable time to sell the property at the end of the agreed term?
The Investors and LandLord are able to vote to keep the property for an extended period until it is a more favourable time to sell. The decision will require a 75% majority.
What are the tax implications?
The tax you pay is your responsibility and will depend upon your individual circumstances. This may include capital gains or income tax and if you need advice on the impact of additional income or capital gains you should discuss this with an advisor prior to making an investment. Your investment is in an SPV. The taxable profit generated by the SPV is subject to corporation tax at 20% and will be paid as Dividends, after net of Corporation Tax and may be liable for Capital Gains tax.
Please note that the corporation tax may be subject to change.
What are CrowdLord's fees?
A £500 listing fee that is charged to the LandLord/Developer.
A success fee of 5% of the total funds raised - this is included in the investment target.
A handling fee of 1% of all income paid out to shareholders (1% of all dividends issued).
An investment fee of up to 10% of the total capital gain of the property after sales cost as calculated by the Nominated Accountants (we only take a % of the capital growth if the property is profitable).
Is CrowdLords FCA authorised?
CrowdLords Limited is an appointed representitive of Share In Ltd which is authorised and regulated by the Financial Conduct Authority.
You can view further FAQs by clicking on the following links depending on whether you are an Investor or LandLord
If you have any further questions or queries please don't hesitate to contact us.