Frequently Asked Questions

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CrowdProperty Limited is authorised and regulated by the Financial Conduct Authority (FRN 723959).

Charges are about control over an asset. The first charge is first in line should the developer default on the loan; once the first charge has been paid off (capital and interest commitments), the second charge owner will be able to take over the property. It should be noted, however, that second charge lenders have the same rights to repossess a property as the first charge holders. However, this only comes into effect once the first charge has been fully satisfied. Once the first and second (and any further) charges have been satisfied, it is only then the developer will receive any remaining profit. For CP Capital second charge loans, CrowdProperty will be the senior lender, ensuring that CP Capital security sits behind a rational, project delivery focused and proven senior lender with reliable sources of capital and a value-adding approach. It’s also more efficient for developers managing just one source of finance through the project capital stack too, helping them to focus on the project in hand.

CrowdProperty has been operating since 2014.

As a duty of care to protect our developers, we ensure that all projects comply with Financial Conduct Authority (FCA) regulations. We also carefully assess every project contextually and against Key Performance Indicators (KPIs).

We assess projects based on key factors such as the Profit on Cost, Loan to GDV, Loan to Value, Loan to Cost and many different market factors. We also carefully look at the experience and credentials of the development business principals and the wider team.

CP Capital is brought to you and powered by the team at CrowdProperty, the UK’s leading specialist property development online lending platform.

Having funded the development of £597m of property projects and the construction of 2,679 homes, the team’s deep asset class expertise, rigorous due diligence and proactive loan monitoring is proven over 8 years of property development lending.

As property finance by property people, the team adds value throughout the project to increase the probability of success of the projects we back for the benefit of the property developers we back and our diverse sources of capital.

Find out more about our team here.

There are no fees to invest in CP Capital projects.

Yes, you can invest tax-free via the CrowdProperty IFISA - subject to your personal tax circumstances and your annual allowances. Tax treatment depends on individual circumstances and may change.

You can also transfer in existing ISA pots into the CrowdProperty ISA. Your CrowdProperty ISA can be used to invest on both the CrowdProperty and CP Capital platforms.

Company directors or shareholders can invest through their company with CP Capital. Simply register your account as a company and enter the required information.

Yes, you can invest in CP Capital projects through a SIPP or SSAS. You will need to check that your pension provider authorises marketplace lending.

There is no secondary market on the CP Capital platform. Once invested, your funds are committed until the loan has been repaid.

We do not currently offer AutoInvest for CP Capital second charge loans. Investors should carry out thorough due diligence on each project and select the loans they wish to invest in. CP Capital second charge loans are significantly more risky than CrowdProperty first charge secured loans.

It is important to remember this is a high-risk investment and is much riskier than a savings account. You could lose all of your money invested in this product.

Your capital is at risk. No FSCS protection. Past performance is not an indicator of future results. Tax treatment depends on individual circumstances and may change.

Second charge CP Capital loans give investors the potential to earn higher interest rates by investing in property projects curated by property experts, with an associated higher risk.

CP Capital is uniquely positioned in offering investors a strong mezzanine finance investment product because:

All projects offered by CP Capital are scrutinised by our extensively resourced team of property development experts who are proven to fully understand the complexities and intricacies of financing the property development asset class.

All projects with CP Capital mezzanine finance are funded by CrowdProperty as the senior development finance provider (the first charge lender). This ensures that CP Capital security sits behind a rational, project delivery focused and proven senior lender with reliable sources of capital and a value-adding approach. It’s more efficient for developers managing just one source of finance through the project capital stack too, helping them to focus on the project in hand.

Whilst CP Capital serves well-researched developer needs for more capital for quality property development projects (which will attract more projects for CrowdProperty and CP Capital for investors to diversify across), the investments offer commensurately higher rates for the higher risk whilst ensuring that significantly motivating skin in the game via equity capital is provided by the developer.

Additionally, CrowdProperty Directors will participate in every CP Capital loan, showing our confidence and commitment in our ability to select and oversee high quality projects being undertaken by high quality property professionals.

Your investment is not guaranteed and you could lose all of your money invested in CP Capital projects.

Charges are about control over an asset. The first charge is first in line should the developer default on the loan; once the first charge has been paid off (capital and interest commitments), the second charge owner will be able to take over the property. It should be noted, however, that second charge lenders have the same rights to repossess a property as the first charge holders. However, this only comes into effect once the first charge has been fully satisfied. Once the first and second (and any further) charges have been satisfied, it is only then the developer will receive any remaining profit. For CP Capital second charge loans, CrowdProperty will be the senior lender, ensuring that CP Capital security sits behind a rational, project delivery focused and proven senior lender with reliable sources of capital and a value-adding approach. It’s also more efficient for developers managing just one source of finance through the project capital stack too, helping them to focus on the project in hand.

The maximum investment size per project is £25,000. We recommend you diversify your investments as much as possible – both on the CP Capital platform across many projects and across investment asset classes.

We may reduced the maximum investment size per project from time to time based on investor demand, this will be confirmed on a project by project basis.

The minimum investment in a project is £1,000.

In order to deposit funds into your CP Capital account (Standard/IFISA/Pension) you must use the reference ‘CPCapital’, any other deposits will direct the funds to your CrowdProperty account. If this happens you can simply transfer the funds between your accounts via the ‘Transfers and Withdrawals’ tab.

With CP Capital, you are required to have funds in your account ahead of investing in a project.

The majority of projects repay interest at the end of the loan term, however some projects do repay monthly interest. Your interest repayment schedule will be outlined in the project information.

CP Capital investment opportunities are available to experienced investors. In order to invest through the CP Capital platform, you must classify as a High Net Worth or Sophisticated Investor. We also accept funds from family offices, funds and financial institutions domiciled in the UK and abroad.

Certain project information is restricted until we have confirmed you are an eligible investor for this investment type. This is a restriction under COBS 4.14.3R of the FCA Handbook.

Yes, you can repay your loan early - this should be within the minimum term of 3 months and maximum loan term of 24 months. You will not be charged for early repayment.

Due to the tougher criteria required for second charge loans, not all developers will qualify for mezzanine finance from CP Capital as this product is better suited to more experienced developers.

No, investors do not get any equity or share directly in the profit from your project. CP Capital is a marketplace lending business that deals exclusively with mezzanine, secured debt. Every pledge will be a loan towards the project as specified for the developer, and returns will be in the form of interest on the capital loaned.

Interest rates and fees are project dependent based upon levels of exposure and project types. Developers will then pay for RICS Valuation, legals and IMS surveys although these may be largely funded through associated senior lending from CrowdProperty saving on the duplication that typically takes place when mezzanine finance is sourced separately from the senior debt. We regularly benchmark our pricing to ensure that we are very competitive and pride ourselves on having no hidden fees. Do assess any offer for finance very carefully – they are often very complicated.

As a duty of care to protect our developers, we ensure that all projects comply with Financial Conduct Authority (FCA) regulations. We also carefully assess every project contextually and against Key Performance Indicators (KPIs).

We assess projects based on key factors such as the Profit on Cost, Loan to GDV, Loan to Value, Loan to Cost and many different market factors. We also carefully look at the experience and credentials of the development business principals and the wider team.

CP Capital has second legal charge over the property and, subject to the rights of the first charge holder (CrowdProperty), therefore recovers funds ahead of the equity holder. If you show no signs of reasonably being able to repay the loan then your property could be at risk of re-possession. Please refer to our risk statement.

A legal second charge will be taken on the property assets associated with the project. Personal guarantees and debentures on companies will also be taken. Other security other than your main residence may also be considered.

CP Capital is brought to you and powered by the team at CrowdProperty, the UK’s leading specialist property development online lending platform.

Having funded the development of £597m of property projects and the construction of 2,679 homes, the team’s deep asset class expertise, rigorous due diligence and proactive loan monitoring is proven over 8 years of property development lending.

As property finance by property people, the team adds value throughout the project to increase the probability of success of the projects we back for the benefit of the property developers we back and our diverse sources of capital.

Find out more about our team here.