Bridging finance investment FAQs

What am I investing in?

You are investing in trust certificates issued by an LHX SPV, with £1 equal to 1 certificate. These certificates grant the holder a beneficial interest in the underlying asset and the profit generated from the arrangement, in this case a targeted return of 10% per annum, through providing bridging finance.

What is my investment being used for?

Funds are being used to provide bridging finance to UK residential purchasers for a variety of purposes; including, refurbishment, accelerated purchases/sales, auction purchases and to resolve property chain breaks. 

What is the value of the issuance?

This varies on a property-by-property (individual investment basis) and corresponds to the value of the property finance. Please refer to the individual investment offerings.

What is the rate of return?

All our new Bridging Finance Trust Certificates aim to offer a targeted return of 10% p.a. Please refer to each investment offering for specific information and please note that returns are not guaranteed.

How is the investment secured?

Each investment is providing finance to customers, through an existing finance provider. As such, the finance provider will hold a first legal charge over the property and act on behalf of LHX investors. In the unlikely event of a default, the finance provider would take charge of the asset in the usual way and recoup funds through a sale of the asset - LHX investors would then be repaid first, as the sole beneficiary.

Is the investment ISA eligible?

No, this investment is not ISA eligible.

What are the fees for LHX investors?

There are no fees for LHX investors.

What are the risks of investment?

As with any investment your invested funds are at risk, and returns are not guaranteed, These offerings are subject to general risks of investment, as well as specific risks, which you can read more about here.

What is the purpose of the Trust Deed?

The Trust Deed establishes a framework for issuing trust certificates, representing beneficial ownership in the assets (and profit generated), held under the trust.

What are the Certificates?

Certificates are financial instruments issued by the LHX legal entity. They represent a  beneficial ownership in the Trust Assets held by the Trustee for the benefit of the Certificateholders. In other words, these certificates grant the holder a beneficial interest in the underlying asset (the property) and the profit generated from the arrangement, in this case a targeted return of 10% per annum, through providing bridging finance.

What is PPNL SPV TC1?

This is the LHX legal entity which is both issuing trust certificates, managing the trust (trustee) and managing the relationship with the finance provider (Offa). 

Can trust certificates be transferred?

No, certificates are non-transferable except in very specific circumstances (e.g. inheritance, bankruptcy or death).

What happens at maturity?

At the end of the Certificate term, once the property owner (customer) either sells or refinances the underlying asset, certificate holders invested capital and profits are distributed in a single transaction to all holders. It should be noted that maturity may take place before or after the indicated term i.e. there may be early repayment resulting in a lower return (as it will be pro-rated) or a greater return if there is a delay in the maturity due to delays in the sale etc in which profit will continue to accrue until repayment.

How are return payments made?

Payments are made electronically to the Certificate holder’s registered LHX account and will be paid alongside the return of invested capital at maturity.

What impact does the fact the investment is Shariah compliant have?

This investment is structured to be Shariah compliant, in order to broaden the scope of the finance providers we can work with - this has no impact on the returns, security or mechanics of the investment, rather it is structured in such a way that creates returns, not through interest but through profit generated by the financing arrangement.