BORROWER QUESTIONS

Q. What does Relendex stand for?

A. Relendex stands for Real Estate Lending Exchange.

Q. Is Relendex regulated?

A. Relendex Limited is regulated in the United Kingdom by the Financial Conduct Authority (FCA) and entered on the Financial Services Register under FRN 723117 for Peer to Peer lenders.

Q. Will I be able to claim against the authorities if something goes wrong?

A. Potential lenders and borrowers should also note that they may bring a complaint against Relendex Limited to the FCA and the Financial Ombudsman Service (FOS) but will not be able to bring a claim for compensation from the Financial Services Compensation Scheme (FSCS).

Q. What kind of loans are available?

A. We arrange short and medium term senior and mezzanine finance from £100,000 to £2million for commercial property investments, residential investments and owner-occupied commercial properties.

Q. So how does Relendex make its money?

A. Relendex charges borrowers an arrangement fee and a serivce fee, both as a percentage of the value of the loan. The arrangement fee is paid upfront. The serice fee paid quarterly to cover operating, transaction, management and monitoring costs and is disclosed in the Auction Particulars for each loan auction. In some instances an exit fee is chargeable to the borrower upon repayment of the loan.

Q. What kind of loans are available?

A. We arrange short and medium term senior and mezzanine finance from £100,000 to £2million for commercial property investments, residential investments and owner-occupied commercial properties.

Q. Is this only an on-line exchange?

A. You can complete our on-line application form for your financing or refinancing requirements, or over the phone by providing details to one of our experienced account handlers. The auction itself happens on-line and matches a Borrower requirement with multiple Lenders.

Q. Do you lend on residential assets?

A. Yes, we arrange funding for residential investments and some developments, but not owner-occupied property.

Q. What other types of assets do you lend against?

A. Relendex arranges funding for income-producing commercial properties including offices, industrial, leisure and retail. We also consider some residential development propositions

Q. How will you decide if Relendex is prepared to post my loan requirement on the Exchange?

A. We will do a first-filter based on the initial information you provide. We request a Professional Valuation and Certificate of Title. We will do an interest cover calculation (where appropriate) to ensure that rents cover the quarterly interest payments and any amortisation (partial repayment of principal during the term of the loan). Once we are happy with these, we will agree loan terms with you and you will be asked to sign a Term Sheet and pay the commitment fee. Your loan will then be listed on the Exchange. All supporting documents including tenant schedule, details of tenant covenants will be placed in the Virtual Data Room and viewable by all prospective lenders.

Q. Is an arrangement fee payable?

A. Yes, this is agreed with the borrower and is set out in the TermSheet. The commitment fee is a sum paid on account of the arrangement fee.

Q. Is the commitment fee refundable?

A. The commitment fee would only be refundable for a borrower requirement posted as a Dynamic Auction, if the Bid Reserve rate was not met and/or the loan amount was not fulfilled during the agreed auction period. For Set Rate Auctions, the commitment fee would only be refundable if the loan amount was not fulfilled during the agreed auction period.

Q. When does an auction end?

A. When either the auction period has expired or the loan has been fulfilled in a Set Rate Auction.  In the case of a Dynamic Auction, a loan closes at expiry of the auction or earlier if the borrower agrees when the Reserve Bid rate has been met and the loan amount fulfilled.

Q. How do I contract with the Exchange and the lenders?

A. You are, as a borrower, bound by the Borrower Terms & Conditions shown on the Relendex website and will be required to formally agree to these before your borrower requirement can be posted on the Exchange.  This is a downloadable PDF document.  In addition, you will be required to sign a TermSheet, Mandate Letter, Loan Facility Agreement (LFA) and security documents including a Charge document. By the LFA you contract in the first instance with the Facility Provider, Relendex Lending Limited (RLL), a Relendex Limited group company. Once the loan auction is successfully filled, the LFA is novated in favour of the individual lenders where their individual bids become separate Loan Parts. The novation process is achieved through a limited Borrower Power of Attorney that you are required to sign as part of the LF
You should read these documents carefully and where necessary, take independent professional advice.

Q. What is a Borrower Power of Attorney?

A. This limited Power of Attorney gives Relendex Limited, the Operator of the Relendex Platform, the authority to novate the LFA in favour of each of the individual lenders in order to create a direct lending contractual relationship between the Borrower and each of them.

Q. What does Novation mean?

A. In this context it means replacing a party to an agreement with another party, with the consent of all parties. In this case, in respect of Loan Facility Agreement, replacing Relendex Lending Limited (acting as Facility Provider) with each successful bidder or purchaser of a Loan Part in that particular loan. This creates the direct contractual relationship between Borrower and individual lenders.

Q. What responsibility do I have for the information I provide about a loan requirement?

A. You will be required to warrant that all the information you have provided is accurate and not misleading. You will be asked to formally approve all of the Auction Particulars (as defined) that are to be posted on the website related to your particular loan.  Relendex does not take responsibility for the Auction Particulars and Lenders will rely on the accuracy and completeness of the information that the borrower provides.

Q. What is a Dynamic Auction?

A. A Dynamic Auction is one in which bidders choose the interest rate they want and the lowest interest rate bidders that collectively fulfil the borrower requirement, win.  Borrowers can decide if they prefer a Dynamic Auction or Set Rate Auction.

Q. What is a Set Rate Auction?

A. A Set Rate Auction is one in which the interest rate is defined at the beginning of the auction and lenders bid only the amount they are willing to lend in that particular auction. Borrowers can decide if they prefer a Dynamic Auction or Set Rate Auction.

Q. Is the interest rate that I pay fixed or floating?

A.  Once the auction is closed you pay a fixed interest rate throughout the loan term.

Q. Can I repay my loan early?

A.  Yes, you can repay your loan before the end of the loan period but if you do so, early repayment penalties may apply.  These are loan specific and are set out in the Loan Facility Agreement.

Q. What happens if you don’t get sufficient bids or the interest rate bids are too high?

A. If at the end of the auction, insufficient bids have been received or, in the case of a Dynamic Auction, the overall interest rate exceeds the rate agreed with a borrower, you may accept a lesser sum. If you do not wish to accept a lesser sum, you as a borrower are free to seek funding elsewhere. The commitment fee would then be refundable.

Q. Once I agree the loan terms with you, am I committed to go through with the loan?

A. Provided interest rate bids are collectively at or below the agreed maximum you will be committed. If the exchange doesn’t receive enough bids to meet your requirement, you are free to seek funding elsewhere.

Q. How does the auction take place?

A. This is an automated process that matches the Lender bids that collectively meet a Borrower requirement for a particular loan. In a Dynamic Auction the lowest interest bids win. The auction may last up to 21 days (plus any further time extension agreed with you), but if the requirement has been fulfilled earlier and the aggregate interest rate is acceptable to you as a Borrower, the auction can be closed sooner.  In a Set Rate Auction the auction automatically closes when the total bids (at the defined interest rate) equal to your funding requirement.

Q. What costs are associated with the transaction?

  • An arrangement fee for a successful auction
  • Valuers fees
  • Solicitors and other professional costs
  • Quarterly service fee to cover our operationg, transaction, management and monitoring costs.

Q. How will I know if my loan has been filled?

A. You can follow the auction on-line in real time. We will also notify you by email when the auction is closed.

Q. What happens once the auction has been successful and my loan requirement is met?

A.  Relendex will instruct the appointed solicitors to carry out the remaining legal due diligence on behalf of the lender group. Once the solicitors are satisfied and the conditions of the Loan Offer have been met, you will be required to sign the agreed Loan Documentation, fulfill any other conditions precedent and pay the balance of the arrangement fee. The loan funds will then be available for drawdown.

Q. Who do these Solicitors and Valuers act for and who pays them?

A.  Appointed Solicitors and Valuers act for lenders and their fees are paid for by the borrower, in the same way that a bank lender would expect these fees to be paid.

Q. Is this only an on-line exchange?

A.  You can complete our on-line application form to be a Borrower, or over the phone by providing details to one of our experienced account handlers. The auction itself happens on-line in order to match a borrower requirement with multiple lenders.
LENDER QUESTIONS

Q. What does Relendex stand for?

A. Real Estate Lending Exchange.

Q. Do you lend on residential assets?

A. Yes, we arrange funding for residential investments and some developments, but not owner-occupied property.

Q. What other types of assets do you lend against?

A. Relendex arranges funding for income-producing commercial properties including offices, industrial, leisure and retail. We will also consider residential development propositions.

Q. Is Relendex regulated?

A. Relendex Limited is regulated by the Financial Conduct Authority and entered on the Financial Services Register - FRN 723117 for Peer to Peer lenders.

Q. Should I seek professional advice before I lend?

A. If I you are not a professional investor or institution, you should seek appropriate advice from a professional adviser about lending through the Exchange.

Q. Can I complain and claim compensation if I lose money by lending through the Exchange?

A. In the first instance any complaint should be made to Relendex Limited and this will be dealt with through the firm’s complaint procedure. In the event that the complainant is not satisfied with the firm’s response, the complainant may address their complaint to the Financial Ombudsman’s Service. You will not be able to bring to a claim for compensation from the Financial Services Compensation Scheme (FSCS).

Q. Are the sums I use to fund my account treated as deposits?

A. Any sums lent through the Exchange are loans and not deposits. There is no guarantee that Lenders will be repaid the amount of their original loan, nor any interest on that loan. The past performance, including the rates of default, of loans made to borrowers via Relendex should not be viewed as a guide to future performance.

Q. Should I consider spreading my risk by buying a number of Loan Parts in different loans?

A. Lenders who lend to a single borrower, or a small number of borrowers, should particularly bear in mind the risks of a borrower default and resulting need to enforce and realise security. Accordingly, lenders should consider an appropriate spread of risk across a number of loans.

Q. Is my money safe?

Client Money:
Client funds are held by our Custodian Bank NatWest Bank plc in a segregated Client Bank Account, until such time as there has been a drawdown of funds for a particular loan. This drawdown will be directly from the Custodian bank to the appointed firm of solicitor acting for the lender group.

Sums Invested in Loan Part:
Any sums invested into Loan Parts through the Exchange are loans and not deposits. Your capital is at risk. There is no guarantee that Lenders will be repaid the amount of their original loan, nor any interest on that loan. The past performance, including the rates of default, of loans made to borrowers via Relendex should not be viewed as a guide to future performance. Lenders who lend to a single borrower, or a small number of borrowers, should particularly bear in mind the risks of a borrower default and resulting need to enforce and realise security. Accordingly, lenders should consider an appropriate spread of risk. If you are in any doubt as to whether lending or borrowing via the Relendex platform is suitable for you, you should seek independent advice from a financial adviser or other professional.

Q. What kind of loans are available?

A. We will provide senior loans, bridging and mezzanine loans.

Q. What is a senior loan?

A. Senior loans are those that have the benefit of a first charge or mortgage over the asset provided as security. Senior lending serves to refinance loans up to 70% LTV. In most instances this covers the entire financing needs of the borrower.

Q. What is a bridging loan?

A. A bridging loan is a short term loan, usually between 6 and 18 months. Relendex take a first charge over a property asset as security for the loan.

Q. What is a mezzanine loan?

A. Mezzanine loans are loans whose security is subordinated to senior loans, in other words mezzanine loan security ranks behind senior debt security, so that in the event of default the senior lenders are paid out first and mezzanine lenders are paid after them. Mezzanine lending therefore has a higher risk profile than senior lending.

Q. For what periods can I lend money?

A. We arrange Senior loans (supported by a first legal charge on the property) for periods from 1 year to 5 years. We also arrange mezzanine loans.

Q. What is the difference between these loan types?

A. Senior loans are typically for 1 year to 5 years and hold a first charge or mortgage over the property. Mezzanine loans are typically for 1 year to 5 years.

Q. What is a Dynamic Auction?

A. A Dynamic Auction is one in which bidders choose the interest rate they want and the lowest interest rate bidders that collectively fulfil the borrower requirement become winners.

Q. What is a Set Rate Auction?

A. A Set Rate Auction is one in which the interest rate is defined at the beginning of the auction and lenders bid only the amount they are willing to lend in that particular auction.

Q. How do I get started and then bid in a particular loan auction?

A. First you will need to register with us. We ask you to complete our Lender Registration Form and then we carry out the usual Know Your Customer and Anti-Money Laundering checks. You will be asked asked to approve the Lender Terms & Conditions (a copy of which can be viewed and downloaded - see Home Page). And also to approve the standard form Loan Facility Agreement (also downloadable) which is provided to show a sample of the contract between an individual lender and the Borrower. You will also be required to sign a limited Power of Attorney (PoA) that gives us authority to novate on your behalf (and transfer to you) a Loan Part for a successful auction bid. Once your account is approved, you may fund your Relendex account by making a bank transfer to our Custodian Bank clients’ account. Once you have funded your account, you will be able to make bid bids on the Exchange.

If you call our Lender Support Helpline on 020 7729 0070 we can take you through the process, which can be completed in a few minutes.

Q. What is Lender Power of Attorney?

A. This limited Power of Attorney (provided once by the Lender to cover multiple future transactions) gives Relendex Limited, the Operator of the Relendex Platform, the authority to novate the Loan Facility Agreement (LFA) in favour of each of the individual lenders in order to creat a direct lending contractual relationship between the Borrower and each of them.

Q. What does Novation mean?

A. It means replacing a party to an agreement with another party, with the consent of all parties. In this case, in respect of the Loan Facility Agreement, replacing Relendex Lending Limited (acting as Facility Provider) with each successful bidder or purchaser of a Loan Part in a particular loan. This creates the direct contractual relationship between Borrower and individual lenders.

Q. Why is Novation necessary?

A. The current legislation applicable to the firm requires Peer to Peer lenders to ensure that individual lenders have a direct contractual lending relationship with a Borrower. Since the Loan Facility Agreement (LFA) has to be negotiated and the Borrower committed prior to the loan auction (and the coming together of a group of lenders), the Facility Provider (Relendex Lending Limited) is the contracting party in the first instance with the Borrower. Once the loan auction is filled, the Facility Provider steps back and individual lenders (by novation) enter into a direct contractual relationship with the Borrower.

Q. How do I begin to bid?

A. You would visit the Auction Marketplace and see listings of Borrower Requirements. These set out summary details of each loan, including the property name, risk rating, loan amount, term, loan to value, average interest rate and other details. When you view a loan that you consider appropriate, you can click on the listing and see more details about the property and the loan in three separate pages. These pages are: Loan and Key Property Details; Location and Description Details; Tenancy Details. Lower down each of these pages (on the left hand side) you can see a section called ‘Current Bidding’ that shows live bid amounts and interest rates. You can also see (on the right hand side) a section called ‘Make a Bid’ that summarises your account balances and the auction parameters. You may place a bid here.

If you have any doubts about how to enter the auction or place a bid, please contact This email address is being protected from spambots. You need JavaScript enabled to view it. or call our Lender Helpline on 020 7729 0070.

Q. What are Manual Bids?

A. These are bids you place yourself during a live auction. You can either set a single interest rate or a range. You bid the amount that you specify by completing the ‘Amount’ box in the ‘Make a Bid’ section.

Q. What is an Auto-Bid?

A. When you set a range of interest rates in the ‘Make a Bid’ section, you are asking the trading platform to bid within that range to keep you in the winning frame in one particular auction. The system will continue to honour your instruction till either your range has been exceeded (because rates in the live auction have eliminated your lowest interest rate bid) or the auction has closed and your bid is a winning bid. Auto-Bids are debited to a lender’s main account.

Q. What is AutoLending?

A. An AutoLending instruction is an instruction by a prospective lender to the trading platform to bid automatically on loans that meet his pre-set lending criteria. These criteria include an interest rate range by risk category, choice of risk category/ies and the absolute amount that the lender is prepared to lend on any single loan.

Q. What is the difference between an Auto-Bid instruction and an AutoLending instruction?

A. An Auto-Bid instruction applies to a single auction where the prospective lender sets an interest rate range for his bids that will be placed automatically by the trading platform. An AutoLending instruction is an instruction by a prospective lender to the trading platform to bid automatically on all loans that meet his pre-set lending criteria until his funds in his AutoLending account are fully utilised. Criteria selection is based on a selected risk category, interest rate range for a selected risk category and a maximum amount that the lender is prepared to lend on any single loan in a selected risk category.
AutoLending instructions will also apply to Loan Part that are resold from time to time through the Resale Marketplace. Any AutoLending instructions whose criteria match a Loan Part resale lot, will be automatically taken up.

Q. What are Loan Part resales?

A. There is a live Resale Marketplace where a lender is able to resell Loan Parts that he/she owns, on a matched-bargain basis. Loan Parts that are resold will either be acquired by new lenders who bid manually to acquire them, or by AutoLenders whose lending criteria are matched with Loan Parts that meet their lending criteria. Loan Parts will be sold at par (less any capital repayments). Loan Parts are not eligible for resale if either, the loan of which it forms part is within 1 month of expiry or where the loan is in default or there has been a notified breach of the loan conditions.

Q. Will I be able to resell my Loan Parts?

A. The Resale Marketplace operates on a ‘matched-bargain’ basis. It allows lenders to resell Loan Parts but in order to do so someone has to be willing to buy them. Initially, Loan Parts will be sold at par, but later may be sold at a premium or discount to the original cost (less any repayments). Loan Part will not be eligible for resale if either, the loan of which it forms part is within 1 month of expiry or where the loan is in default or potential default.

Q. So these loans have different risk profiles and presumably different interest rates?

A. In the current climate senior debt will typically pay (the lender) between 5% and 10% per annum, mezzanine and bridging loans will be priced between 10% to 18% per annum. These different interest rates reflect the different risk profiles of different loans and different security.

Q. Is the interest rate that I received fixed or floating?

A. Once the auction is closed you receive a fixed rate of interest throughout the loan term.

Q. Am I liable for tax on the interest I receive?

A. Yes, in the UK you would be liable for income tax on the interest that you receive as a lender. Lenders can obtain online reports from Relendex of income and deductions in any tax period. Relendex is not currently required by the UK tax authorities to deduct withholding tax (WHT) on interest paid to individual lenders. Further, Relendex is not required to deduct withholding tax on interest paid to companies that are subject to UK Corporation Tax. Lenders should seek independent professional advice in assessing their liability to taxation in the relevant jurisdiction.

Q. So how does Relendex make its money?

A. Relendex charges borrowers an arrangement fee and a service fee, both are expressed as a percentage of the value of the loan. The arrangement fee is paid upfront. The service fee is paid quarterly to cover operating, transaction, management and monitoring costs and is disclosed in the Auction Particulars for each loan auction. In some instances an exit fee is chargeable to the borrower upon repayment of the loan.

Q. What is the Loan Structure?

A. Each Lender is a party to the Loan Facility Agreement in the capacity of a Lender. Security is held on trust for the benefit of each lender group by Relendex Security Trustees Limited (Trustees) under a Trust Deed.

Q. What are the roles of Relendex Limited and Relendex Lending Limited?

A. Relendex Limited (Relendex) is the platform Operator and acts as the agent for individual Lenders. Relendex Lending Limited (RLL) a wholly-owned subsidiary of Relendex Limited, is the Facility Provider.

Relendex on behalf of the Facility Provider will identify a Borrower and its Loan Request and will negotiate a Loan Facility Agreement with that Borrower which will contain the Key Contract Terms agreed with that Borrower. The Facility Provider will enter into the Loan Facility Agreement. The Loan Facility Agreement will make it clear that the Facility to be made available to the Borrower will not be provided by the Facility Provider itself but will be provided by prospective Lenders bidding to participate in the Facility through an Auction carried out through the Relendex Platform.

Each Loan Facility Agreement will contain provisions whereby the Facility Provider is empowered to enter into separate Deeds of Novation with prospective Lenders who bid through an Auction under which the Facility Provider will transfer by novation to Lenders individual portions (corresponding to their successful Auction Bid or Bids) of the Facility and its obligation thereunder to make Loans to the Borrower (Loan Parts).

Q. Who am I lending to and how do I contract with the borrower?

A. As a Lender being part of a successful lender group, you will lend directly to a particular Borrower under the Terms & Conditions set out in the Loan Facility Agreement (LFA). Relendex Security Trustees Limited (Trustees) takes security over the borrower’s asset and holds it on trust for the benefit of the lender group and each lender in proportion to his/her participation in the relevant loan, under the Trust Deed.

In order to become an approved lender, you must formally accept – by ticking the appropriate box, the Lender Terms & Conditions nad sign the limited Power of Attorney (see above) by which a Loan Part is novated (transferred) into your name. In order to bid on the Exchange you must formally accept - by ticking the appropriate box, the RLL Loan Conditions.

The Lender Terms & Conditions and standard Loan Facility Agreement are viewable on the Relendex website (see Home Page) and are downloadable as PDFs.

Q. How does the security work?

A. The Security Trustees (see above) takes security on behalf of the lender group. This could be a first charge (mortgage) for senior loans, or a second charge in the case of mezzanine loans, over the property asset. Relendex Security Trustees Limited takes security over the borrower's asset and holds it on trust for the benefit of the lender group and each lender in proportion to his/her participation in the relevant loan, under the Trust Deed.

Q. What responsibility does Relendex take for information posted about a particular loan requirement?

A. Relendex takes no responsibility for the details of borrowings posted on the website. Borrowers are required to warrant that all the information they have provided to the Exchange is accurate, complete and not misleading. They are asked to formally approve all of the Auction Particulars (as defined) that are to be posted on the Exchange related to a particular loan. Lenders must rely on the accuracy and completeness of information that the borrower provides, as well as professional reports (including Valuations and Certificate of Title) addressed to the successful lender group.

Q. Who do the appointed professionals act for and to whom do they owe responsibility?

A. Solicitors appointed from a Panel act directly for the successful lender group. Valuers also act directly for the successful lender group. Lenders may rely on these and other professional reports and in the event of an error have direct recourse against a particular professional, including recourse to their Professional Indemnity insurance.

Q. What is meant by portfolio risk spread?

A. Relendex provides the exchange through which Lenders are matched with Borrower requirements. A Lender’s first priority should always be capital preservation, i.e. Lenders should always seek to protect the principal sum that they lend. It is prudent for Lenders to spread the risk by deploying their available resources across a number of different loans to different Borrowers. They can also spread in other ways - by location, by loan size, by asset type (retail, leisure, offices, residential, industrial) and by tenant and tenant diversity.

Q. What is meant by diversification?

A. Diversification means the ability to spread risk by investing in multiple different categories. These categories may include: loan type, different borrowers, loan size, Loan to Value, location and tenant. Diversification may or may not be available at any particular time through the trading platform.

Q. How else can I reduce the risk?

A. Senior loans are lower risk than mezzanine loans because a senior loan takes the first charge over the property asset. Lenders should also be aware of the percentage of Loan to Value (LTV). Higher LTVs are more risky than lower LTVs because the lower the LTV, the more 'equity' there is in the transaction. All of the ‘equity’ has to be eroded before a lender suffers any loss. Lending 10% of a loan requirement is less risky than lending 80% of a loan requirement. Because if the borrower were to default, the less the lender could lose in absolute terms on that single loan. A lender would be prudent not to put the whole sum into a single loan. Obviously, these are all matters for each Lender and his/her own judgment. Any Lender not sure of how to allocate funds should seek independent professional advice.

Q. Is Relendex guaranteeing these loans?

A. Relendex is a broker/facilitator, it does not guarantee any loans. It brings together and presents all the information so that a Lender can decide in which loans he wishes to participate, using his/her own judgment, where the prospective lender takes appropriate professional advice, as necessary.

Q. Can I rely on the Risk Rating guide as a guarantee of quality?

A. Risk Ratings are provided as a guide only to relative strength of a particular loan requirement as compared with other loans. These ratings do not provide an absolute measure of financial strength or the ability of a borrower to pay interest or repay the loan at the end of the term. We set out in the Risk Rating guide section an explanation of the composition of the elements taken into account in arriving at a particular rating. These include mathematical calculations and others based on more subjective criteria such as competence of management, local market conditions and local letting market. A weighting is applied to the ‘score’ for each element. The Relendex exchange offers a transparent process, so that prospective lenders can review details of all loans on a full disclosure basis and make their own judgment about their suitability. Prospective lenders should review all the documentation relating to a particular loan in the Virtual Data Room before bidding and where necessary should seek appropriate independent professional advice. Relendex, acting as introducer, does not accept responsibility for any loss incurred on any loan.

Q. How does the auction take place?

A. This is an automated process, using the Internet and Relendex’s trading platform. It matches those Lender bids that collectively meet a Borrower requirement for a particular loan. In the case of Dynamic Auctions, the lowest interest bids which collectively fulfill the loan requirement win. In the case of Set Rate Auctions, an interest rate is defined at the start of the auction and lenders decide how much of the loan they wish to bid for.

Q. How do I bid on a particular loan requirement?

A. As an Approved Lender you would enter the Marketplace and you would then look at a particular listing on a ‘Borrower Requirement Page’ and view a loan that you find of interest. You will be able to view the Auction Particulars with details including loan term, target interest rate set by the borrower, a Loan to Value ratio and interest cover. You can also view details of the asset, tenants, a full tenancy schedule, leases and rent reviews from which you will be able to assess the quality of the rental income.

You will also be able to look at the supporting documents in the Virtual Data Room including a Professional Valuation, Tenant Schedules, other professional reports and information about the borrower. You can then scroll down to the ‘Make an Offer’ section. You can then view a list of all other bids that have been placed so far in the live auction. Also shown is the progress in the auction in meeting the total borrower requirement. The boxes in this section will allow you (as an approved Lender with funds deposited with our Custodian Bank) to enter the amount you want to lend and the interest rate you would ideally want. You will then be able to click the button ‘Make an Offer’ and your bid will be recorded in the live auction. You will be asked to confirm your bid by entering your Personal Identification Number (“PIN”).

Q. Do I need to deposit funds with Relendex before I can bid?

A. Funds will need to be lodged with our Custodian Bank Natwest Bank plc, before you can bid in an auction for a particular loan. Once you make a bid, your bid sum will be blocked at the Custodian Bank pending the outcome of the auction. If your bid is successful, your funds will be allocated to the successful lender group associated with that particular loan. If unsuccessful, your funds will be unblocked and available to you to bid in other loan auctions.

Q. Can I withdraw my bid once made?

A. Once committed, a bid stands and cannot be withdrawn. A lender’s funds are blocked for the bid sum until the auction ends, unless in the case of a Dynamic Auction, your bid is unsuccessful. If the bid is successful a Lender's funds move to a designated account to provide the drawdown of the loan once final due diligence and loan and security documentation are completed.

Q. In Dynamic Auctions where other lenders bid lower interest rates than me, can I change my bid?

A. Yes, you can reduce the bid interest rate (but not raise it) while the auction is live.

Q. How will I know if my bid has been successful?

A. We will notify you by email. You will be able to see your bid listed in the live auction listing. Your user name will be displayed together with the bid amount and interest rate and the time of your bid. You will be able to see if it is within the winning group.Current live bids are shown on each Lender’s Dashboard

Q. Who are the solicitors and valuers?

A. Relendex will appoint a UK firm of Solicitors and Valuers from our Panel of selected firms.

Q. How will I know what rate I’m getting?

A. The Lender screen shows the net interest rate payable to a Lender.

Q. When is my interest paid?

A. Interest is normally paid quarterly and credited to your Lender Account. You can ask for any credit balance on your account to be transferred to your nominated bank account, or you can re-lend funds in another loan auction.

Q. What happens if the borrower doesn’t pay?

A. We will notify you if there is a Borrower interest payment shortfall and the reason for it. If it is a temporary problem which can be resolved no default will occur. If it is a more serious problem Relendex will, acting as Lenders' agent and based on advice, appoint a Law of Property Act (LPA) receiver and where appropriate, sell the asset security property.

Q. Will larger lenders in a particular loan have more power in taking decisions?

A. No. In the event of a default by a borrower, Relendex, acting as agent for the relevant lender group and after taking appropriate professional advice, will take all decisions regarding recovery of Lenders' principal and interest.

Q. What happens if a Borrower repays his loan early?

A. If a Borrower repays his loan before the end of the loan period, as a Lender you will receive your proportion (based on the original value of your Loan Part) of the sum repaid. The Borrower may also be charged an early repayment penalty depending on the time that remains until the loan end date. These penalties are loan specific and are set out in the particular Facility Agreement. Lenders receive a proportion of the penalty amount to compensate them for early termination of the loan. Lenders share of the penalty sum received is calculated by reference to their contracted interest rate as compared to the Borrower interest rate plus the Service Fee. So that if a Lender receives an interest rate of 6% pa and the borrower pays 7% pa (6% rate plus 1% service fee), then a Lender will receive six-sevenths of his proportion of the penalty sum received.

The list of questions and answers above is provided as a guide to how the Exchange operates. None of the content of this page should be construed as legally binding on any party. Borrowers and Lenders should refer to the detailed Terms & Conditions that are provided when they make a formal commitment to either borrow or lend funds through the exchange. Formal loan documentation and security documentation shall always take precedence over this website or any other notice.

Important Notice

 

Relendex Limited is regulated in the United Kingdom by the Financial Conduct Authority and entered on the Financial Services Register - FRN 723117.

 

Lenders participating in these arrangements should be clearly aware that any sum lent through the Exchange is a loan and not a deposit and its repayment is not guaranteed. It is in the nature of an investment opportunity. Any investor should consider an appropriate spread of risk. Non-institutional investors should seek professional advice before lending through the Relendex Exchange.
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Relendex Limited is registered in England, Company Number 07486328 Registered Office: Ground Floor, 45 Pall Mall, St James’s London, SW1Y 5JG

 

Relendex Limited is registered under the Data Protection Act, Registration Number PZ2708231

 

 


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