Who are LendCart?
LendCart are a lending platform that provides access to institutional-grade investment opportunities in the UK real estate sector for investors from across the globe. We identify attractive opportunities and strive to deliver returns superior to those available elsewhere in the market. We align our interests with our investors by co-investing in every project and only receive returns once the project has completed. We are based in Central London and, our team consists of experienced professionals with both property and finance expertise.
How are LendCart different from others?
We co-invest in every project and share in the returns, ensuring that our interests are always aligned. We have a team of experts who have developed a bespoke due diligence process. We do not charge our investors fees on their investments. We offer investors returns comparable to those of property developers. In the unlikely event of a loss, investors are paid out first before Lendcart and the developer. We have a strong track record of investing in successful residential real estate projects. We have an extensive developer network constantly bringing us potential development opportunities.
How do LendCart investments work?
Our project cycle consists of 5 key steps: identify and assess potential projects, conduct extensive due diligence, raise project funding, monitor project delivery and distribute profits.
Why do you classify what type of investor I am?
As per requirements set by the Financial Conduct Authority (FCA), we must assess whether our clients have the necessary knowledge and experience to understand the risks in our investment products. It is important to us that our products are suitable and appropriate for our clients.
Why do you need my personal information to make an investment?
We conduct proof of identity and proof of address checks to comply with UK money laundering regulations. These are set out to fight fraud, money laundering and financing of terrorism.
Can I invest if I reside outside of the UK?
We generally accept investments from all countries, with the exception of those countries blacklisted on the basis of anti-money laundering rules. There may be a handful of countries from which payments cannot be received or sent. If you are resident in any country other than the United Kingdom, your local regulatory regime may differ from that of the United Kingdom, and you accept that it is your responsibility to make sure that you act in compliance with any relevant laws or regulations which may apply to you as a resident or citizen of that country. Please see our terms and conditions for more information, and please feel free to contact us if you have any further questions.
What is the minimum investment amount?
Typically, the minimum you can invest is £10,000, however this may change from one project to another.
What is the length of an investment?
The typical project length ranges from 3-24 months. Timescales will vary from project to project, details and breakdowns of projects phases are always included in the project memorandum. As soon as a project is completed capital and returns are returned to your Lendcart wallet.
Can I get my investment back at any time?
Your capital and any interest will be due back to you when the project has been completed and your money cannot be withdrawn until then. If you wish to exit a project early, you are able to list your investment on the secondary market to find a potential buyer and agree a suitable price.
What happens if the target funding amount is not met?
If the target funding amount is not met, we always strive to underwrite deals and then back- fill them through our platform. However, if for some reason the project does not proceed after the funding period, all committed investors funds would be returned to your Lendcart wallet.
How often will I receive project updates?
You will receive quarterly updates on the projects that you have invested in. Ad-hoc updates will also be provided for major milestones or key events with regards to a project.
Do you accept ISA funds?
No, we do not accept ISA funds.
How can I make an investment?
Once you are fully registered on the platform you can choose an offer that you would like to invest in, if the offer is IFISA eligible you will be given the option to invest directly or within IFISA. You simply state how much you would like to invest and follow the on-screen instructions. You will be given the option to fund your investment via bank transfer (instructions for your bank will be shown on screen and emailed to you) or pay from your wallet if you have cleared funds in your Lendcart wallet.
When will my investment start earning returns?
Investments typically start earning returns once invested funds are drawn down to the developer for the project to begin. Therefore investments made before the drawdown date start accruing interest on the drawdown date, whilst those made after the drawdown date start accruing interest as soon as funds arrive and investment registered. If you are investing from your wallet, your funds will be transferred and investment registered instantaneously, whilst if you have made a pledge, the investment will be registered as soon as the funds arrive and are allocated to the project. This may take several days depending on your funds transfer arrangement with your bank.
How do I get my funds back?
Funds sitting in your Lendcart wallet can be returned to your nominated bank account. Please visit your portfolio and follow instructions to withdraw funds.
Can I invest in a company name or other legal entity?
Yes, you are able to invest via your company or a trust. During registration, you will have the option to register as an individual or a corporate entity. Depending on your option you will need to supply a different set of documents for KYC purposes, such as a company’s certificate of incorporation and articles of association .We also accept investment via SIPPs and SSASs.
How do bank transfers work?
When you make an investment by bank transfer, you will be given on-screen instructions including a Unique Bank Transfer Reference Number which will be used to match your funds to your investment. This information will also be sent to you by email. Funds should be transferred to Lendcart’s custodian and holds all client monies in segregated accounts. IFX UK Ltd (Firm Reference Number 900517) is authorised and regulated by the Financial Conduct Authority. Based on your bank’s processes, a transfer may take up to 5 working days to complete. If your bank uses the Faster Payments Service, your payment will normally arrive within a few hours. You will receive an email when your funds have arrived and the investment is complete.
How do I top up my wallets?
If you would like to top up your Lendcart wallet by bank transfer you can find the relevant details in your portfolio, simply follow the instructions to add funds. Alternatively, you will have an option to ‘set up standing order’ and clicking this will give you the necessary information to set this up with your bank, or you could use the wallet reference to make direct top ups to your wallet. This will be a seamless process with funds crediting your wallet automatically when received.
Can I cancel my investment?
You will have a “cooling off” period for 3 days after you make your investment when you can call us for your money to be returned to you.
What are the risks associated with investing in these types of projects?
The key risks associated with these types of projects are set out in our Key Risks document, and a list of the key risks of an individual project will be included as one of the investment documents. Returns from property investments are difficult to predict. The returns are not guaranteed, and your capital is at risk. We have sought to minimise the risks by carrying out detailed due diligence on the project and the developers. We then monitor the development works as the project progresses
Is Lendcart regulated by the Financial Conduct Authority (FCA)?
No, Lendcart is not authorised and regulated by the Financial Conduct Authority. But LendCart Security Trustee is authorised and regulated by the Financial Conduct Authority under the reference number (FRN 789335).
Is my investment protected by the FSCS deposit guarantee scheme?
No, any investments which you make on the Website are not covered by the Financial Services Compensation Scheme (FSCS). However, for uninvested funds sitting in your Lendcart wallets, a certain amount may be covered. The level of coverage depends on several complex factors and will be impacted by other funds you have being held in other Barclays Bank accounts. For further information about the FSCS (including what is covered and eligibility to claim) please visit the www.fscs.org.uk website or call 0800 678 1100.
Where are the funds held during the funding process?
Funds are held with IBANQ, in a segregated project account whilst the funding process is ongoing. They are totally separated from LendCart and are only transferred from IBANQ into a project once the funding target has been met.
What happens if Lendcart ceases to exist or falls into financial distress?
Each property investment is ring-fenced from the assets and liabilities of Lendcart as well as from all other property investments on the investor portal. As required by the FCA, Lendcart has in place a Resolution Plan and wind-down arrangements to ensure that all ongoing projects are completed should Lendcart fall into financial distress and not be able to continue in business.
How can I make a complaint?
LendCart are responsible for reviewing and approving the materials made available for the investment opportunities presented on our platform and we want to give you excellent customer service but sometimes things might go wrong. We can usually resolve most issues straight away, so please email us at enquiries@lendcart.co.uk to tell us how we can help. What you’ll need to tell us so that we can help you: Your personal details, What’s gone wrong and What you want us to do to put things right? If you’re unhappy with the outcome of this, UK Residents can ask the Financial Ombudsman Service (FOS) to carry out an independent review of your complaint. The contact details for the FOS are: The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR. Their phone numbers are +44 (0)300 123 9123 or +44 (0)800 023 4567. You can send an email to: complaint.info@financial- ombudsman.org.uk.
How does LendCart make its money?
We believe in aligning our interests with those of our investors. We charge no management fees but instead share the returns with investors once the project is completed. To help cover some of the transaction costs, we charge an initial administration fee equivalent to circa 3% of investor funds charged to the project. Investors are not directly charged and 100% of your funds are invested into the project.
Do you charge payment transaction fees?
We will not charge you for processing your payments. Any charges for transactions will be determined by your bank. International transfers may incur service charges or currency conversions based on your bank’s policies. Please check with your bank before initiating any transaction.
Can I Invest via my Pension?
Yes, you are able to invest via your SIPP (Self-Invested Personal Pension) or SSAS (Small Self- Administered Schemes) subject to the requirements of your pension provider.
Are Lendcart’s projects SIPP eligible?
SIPPs may invest in our products but your own pension provider will need to determine whether they comply with their own investment requirements.
What is a SIPP?
A Self-Invested Personal Pension (SIPP) is a pension ‘wrapper’ that holds investments until you retire and start to draw retirement income. It works in a similar way as a standard pension, however the main difference is that you have more flexibility with the investments you can choose. There are certain tax benefits associated with contributions, but you are usually unable to withdraw money from the pension before you are 55 years old.
What is a SSAS?
A Small Self-Administered Scheme (SSAS) is a type of small occupational pension scheme approved by HMRC. This is usually established under trust, typically by company directors to provide retirement benefits to a small number of key staff. Insurance companies and other pension providers may also offer SSASs.
How can I invest via a SSAS?
If you are interested in investing with us through a SSAS, please register a new account on the website and put your scheme administrator in touch with us to assist then through the process.
