What is Crowdahouse?
Crowdahouse is a peer-to-peer (P2P) property crowdfunding platform lending to business borrowers, always secured against property. Instead of lending to individuals, we’ve reduced the risk by offering you the chance to lend only to businesses. You join a crowd to lend money in return for interest on your money. Your loan is secured with a first charge over property and you pay no fees as a lender.
How can I become a Crowdahouse Borrower?
To borrow money from Crowdahouse Members, you must be a corporate entity – a Limited Company registered in the UK – or a self-certified High Net Worth Individual (HNWI) borrowing for business purposes.
Please contact us about becoming a Crowdahouse Borrower. We’ll initially need some basic information about your property or project from you. The Crowdahouse Team will review this and then contact you for further details.
What information do I need to provide to Crowdahouse Members?
You will need to provide clear and accurate information to Crowdahouse, so that our Members have access to essential information about the loan opportunity and the property you wish to offer as security. You will also need to supply legal documents as confirmation where required. A RICS valuation carried out by a surveyor from our panel must be provided for each property offered as security.
Who is the owner of the property?
The Borrower is always the owner of the property. Crowdahouse Lenders simply lend against the security you provide – a first charge against the property.
What happens if property values go down?
As with any form of secured finance such as a mortgage, if the value of the property you have provided as security falls, you will still need to repay your Crowdahouse Lenders at the end of the Term and be liable for the full amount of the Loan Agreement.
What kind of fees does Crowdahouse charge a Borrower?
As a commercial Borrower, arrangement fees and charges apply to your loan. Arrangement fees only apply if your loan is successful and it is possible to add the arrangement fees to the amount you would like to borrow. There is also a small non-refundable application fee to cover the costs of the due diligence that Crowdahouse must perform before lending can take place and for creating the project’s Loan Offer Document that will be made available to Crowdahouse Members. The current fees and costs are outlined in our table of costs here.
How much will it cost me to borrow from Crowdahouse Members?
As a Borrower, you set the interest rate you want to pay. Crowdahouse can advise you on typical rates and terms that you would need to set in order for our Members to consider lending to you. Please contact us about your proposal for your property.
What’s the minimum amount I can borrow?
The minimum amount is £20,000. Fixed fees apply – see here.
What’s the maximum amount I can borrow?
There is no maximum amount, but please bear in mind that projects requiring larger loans may take longer to fund.
What’s the minimum term I can borrow for?
The minimum term is 6 months.
What’s the maximum term I can borrow for?
There is no maximum term, but please bear in mind that projects requiring longer loan terms may take longer to fund. Crowdahouse usually recommends a loan term of between 9 months and 5 years, but this is entirely flexible.
What happens if I can’t pay the interest?
If you fail to make your contractual interest payments to your Crowdahouse Lenders, then procedures outlined in your Loan Agreement under our Crowdasafe™ loan security scheme will allow the Lenders to appoint an Administrator and take full control of the property. This protects our Lenders and allows Crowdahouse to make lending as safe as possible.
Can I borrow money for residential buy-to-let property?
Yes, you can borrow money for residential buy-to-let property. Crowdahouse operates a maximum Loan to Value policy of up to 85% LTV of the purchase price OR current value, supported by a RICS valuation. Please contact us about your proposal for your property.
Can I borrow money against property with existing tenants?
Yes, provided the tenants are occupying under a standard Assured Shorthold Tenancy (AST) agreement or standard commercial lease where relevant. Please contact us about your proposal for your property.
Can I borrow money to ‘bridge’ the mortgage lender’s 6 month ownership rule?
Almost all mortgage lenders insist on a 6 month ownership period before you can refinance. With Crowdahouse you can borrow money to refinance any time from the day of purchase. You can therefore use a Crowdahouse loan to ‘bridge’ your finances until you are able to refinance with a mainstream lender after 6 months.
Crowdahouse operates a maximum Loan to Value policy of up to 85% LTV of the purchase price OR current value, supported by a RICS valuation. Please contact us about your proposal for your property.
Can I borrow money against my entire property portfolio?
Yes, but a first charge must be provided over all the properties you wish to borrow against. Please contact us about your proposal for your property portfolio.
Can I borrow money for mixed use residential/commercial property?
Yes, in most cases this is possible. Please contact us about your proposal for your property.
Can I borrow money for commercial property?
Yes, in some cases this is possible. Please contact us about your proposal for your property.
Can I borrow money to finance property developments?
This is possible, but you will need to provide a first charge secured over property to cover the full loan amount and you may be required to obtain development insurance. Please contact us about your proposal for your development.
Can I borrow money to buy my own home?
No, loans cannot be used to finance your primary residence, under any circumstances. Occupation by the Borrower or related persons of a property subject to a Crowdahouse loan is an automatic loan default.
Can I borrow money to remortgage my own home?
No, only investment properties qualify for lending. Crowdahouse does not provide lending to owner occupiers.
Can I borrow money against property that is already mortgaged?
No, only properties with clear title qualify for lending. Crowdahouse does not provide second charge lending.
Can I borrow money for overseas property?
No, Crowdahouse currently provides lending only for property in England & Wales.
Can I increase my borrowing on a property that already has a Crowdahouse loan?
It depends on your original Loan Agreement with your Crowdahouse Lenders. Terms cannot be changed during the Loan Term. Please contact us to discuss this further.