London House Exchange allows you to automatically reinvest the dividends you earn from a property back into the same property. This allows you to compound the returns on your initial investment and the potential benefit is magnified the longer you plan to hold your investment.
To benefit from this feature go to your Dashboard in My Portfolio. In the Current Investments tab you will see the option at the top to turn on Reinvest Dividends. You can turn this feature on and off at any time. This feature is available at a portfolio level, which means that we will attempt to reinvest all of your dividends across all properties.
Terms apply to this feature and by turning this feature on you agree to the terms.
Each month your dividends are paid on the 5th, or the next working day. If you turn on Reinvest Dividends London House Exchange will attempt to reinvest your dividends on the same day that dividends are paid. You must have the feature turned on before dividends are paid in order for that month's dividends to be reinvested.
London House Exchange will automatically reinvest your dividends at the best available buy price, and only when that price is not materially higher than the 30 day weighted average share price. This avoids your dividends being reinvested at a price that may only be inflated on that day or recently. If we cannot reinvest part or all of your dividends then the remainder will be added to your Available Funds.
We process all dividend reinvestments at the same time, for all clients. We do it in a randomised order which we think is the fairest way for a large number of clients. Provided that there is sufficient depth in the market for a given property, all clients will have their dividends reinvested at the same price. However, if there is not enough market depth (i.e. the amount of shares available to buy at a given price), some clients will get a better price than others. Here is an example:
Total amount of dividends to reinvest for all clients: £10,000
Total available at the best available buy price: £8,000
Total available at the next best available buy price: £5,000
In this scenario, the first £8,000 of dividends reinvested will get the best available buy price. The remaining £2,000 that needs to be invested will get the next best buy price.
Our General Investor Terms & Conditions apply to any reinvestments. In the event that there is any conflict between these terms and the Investor Terms & Conditions, the Reinvest Dividend terms shall take precedence.
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