The structure outlined below is taken from our guide on the Top 5 Ways UK Property Developers can raise Development Finance from Private Investors. (To request your free copy of the guide, email us at info@lcnproperty.com
This article appears in the January edition of our Newsletter Creating Wealth Through Property
A loan note is essentially just an IOU – a piece of paper recording a promise to repay a loan, usually with interest, on specified terms. It is an effective way of recording loans from multiple lenders on the same terms. Loan notes may be:
This example relates to loan notes which are unlisted, and which are secured by a first or second fixed charge over the underlying property. The benefit of the security would typically be held by an independent entity which is regulated by the Financial Conduct Authority or equivalent financial services regulator. The main reasons for involving a security trustee are as follows:
LCN Property helps investors, asset managers, developers and property finders setup and maintain solid legal foundations for their projects.