17 Feb 2012
The alternative presentation. [The serious one is on the web as well]
Syndicated loans FAQs
What are syndicated loans?
Syndicated loans are always secured against the subject property by way of a first charge. You can participate in the loans, either in whole or in part, by syndication with other people. You then become beneficially entitled to a proportion of the security, the interest and the capital of the loan.
How much can I put in?
The minimum is £25,000.
What is the period of the loan?
The loan is made for a period of between 6 and 12 months, although we can be flexible and will consider longer periods.
What is the value of the loan?
We lend between £150,000 and £750,000 in any one loan.
What level of return can I expect?
Currently our loans are delivering returns of around 12% p.a.
What is the maximum Loan To Value (LTV)?
Our typical LTV is 50% but some loans may have 60% LTV at the end of the loan period.
Can I choose which loan I put money into and how much control do I have?
You are in full control of which loan you participate in. We do not seek discretion. The choice of loan is yours and we actively encourage you to spread your funds over more than one loan. This level of choice and control is the beauty of syndicated loans.
Who are the borrowers?
Borrowers tend to be small builders and property developers looking for short-term development finance.
What happens if the borrower cannot repay the loan?
We will work closely with the borrower throughout the term of the loan and may be able to renegotiate an extension (in line with the wishes of the syndicate members). If this is not possible we will trigger our first charge on the property, take possession of the site and take control of the development. Helmsley has 30 years property development experience and, if required,we will use our in-house expertise to realise the capital in the most expedient way.
Who manages the loan?
Helmsley manages the loan, employing the necessary professional advisers as appropriate.
What happens if I want to get my money back?
The loans are short term (6 to 12 months) and your investment is committed for the duration of the loan.
What would happen if, for any reason, Helmsley ceased to exist?
You are participating directly in the loan and the repayment would be made directly to you.
How is Helmsley paid?
Helmsley receives an upfront commission of 2% and a proportion of the interest paid by the borrower.
