This is not a comparison report . . . it’s a warning!
We all want to generate good returns on our savings and investments in this low interest economy and many companies are capitalising on this, bombarding us all with social media and email marketing campaigns offering guaranteed returns! But how can you be sure it’s not a scam?
All over the news last week were reports concerning some £236m of customers’ investments that are now in the balance, after the collapse of mini-bond company London Capital & Finance.
Now subject to a criminal investigation, it has emerged that LCF mislead investors by erroneously marketing a ‘fixed rate ISA’, which has since transpired to be an unregulated, high-risk mini-bond scheme.
So why did it all go wrong?
Basically, the LCF bond was not set-up as a proper investment vehicle to begin with. The product was not advice driven and the security structure was exceptionally weak, with investments made against company shares and not actual, tangible assets.
Overall, the investment was inadequately structured, poorly administered and arguably misleading, and ultimately failed to provide adequate security for those who invested.
What makes us different from the rest?
Our Secured Loan Notes have been created through working closely with investment professionals with more than 100 years of combined experience in the financial services and development sectors.
As a client, you can have the confidence and assurance that all our Secured Loan Notes are subject to rigorous due-diligence and a detailed legal process. We use leading UK firm, Howes Percival Solicitors; trusted for over 200 years to provide expert legal guidance. This is an expensive legal process, with costs met by us - not our investors. However, this goes way beyond something measured purely in monetary value, by providing the best security terms available for our investors.
Every Secured Loan Note has security by way of a first or second charge over land and/or property assets, with a maximum LTV (loan-to-value) of 75%.
Our Secured Loan Notes are predominantly ‘advice driven’, with all applicants required to seek advice from an investment professional and/or a financial advisor before they can proceed with their application. Many applicants are part of our existing community of property investors, who have confidence and place their trust in the high-quality products and services we provide.
The ISA platform provider must be satisfied that any ISA product they manage meets their exacting criteria before allowing it to proceed and they place the utmost importance in ensuring the security of investors’ assets, through strategic alliances with highly-rated independent custodians.
We work alongside two Secured Loan Note issuers; Prosperity and ZSL Capital. Prosperity is a high-profile developer with a proven track record in delivering several successful development projects. ZSL Capital are an investment arm of Zenzic Partners Group; an FCA regulated, privately owned merchant bank.
Our Moseley Gardens 2 Secured Loan Note is our tenth project with Prosperity. Investors can generate returns of 8.5% per annum for an anticipated term of 24 months, payable upon redemption. The Loan Note is secured by way of a second charge over the land and the property pre-sales, giving a GDV (gross development value) of £14.1m on an LTV of 75%. Click here to find out more.
Our ZSL Secured Loan Note offers investors the opportunity to generate returns of 8% per annum, payable bi-annually (every six months); perfect for those seeking income. The investment term is for 36 months and is against a diversified portfolio of high-quality loans, which are each secured against UK real estate assets, up to a maximum LTV of 75%. Click here to find out more.
A few words from Thomas Lloyd-Jones, Co-Founder and Principle of ZSL Capital.
“We differentiate ourselves by pledging security at a portfolio level, as opposed to pledging security over a single asset or scheme. We believe single asset type investments carry greater exposure to specific and/or concentrated risks. Our investors can take comfort from a portfolio of security spanning multiple real estate assets across varying locations, scheme sizes and loan sizes. ZSL Capital takes direct charges over Real Estate and/or the Real Estate holding SPV’s, in addition to personal guarantees and charges over wider non-development assets. All of this is captured by a security debenture over the ZSL lending entity, which ensures that all security across all of the loans advanced is held for the benefit of loan-note holders. Moreover, the debenture, which is overseen by an independent third-party Security Trustee, extends to all cash held on account from undeployed capital, realised loans and profits from lending activities.”
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