We have been working with the FCA to ensure our operations are fully compliant and we are working towards becoming directly fully authorised.
In respect of equity investments, The House Crowd Limited (FRN 711355) is an appointed representative of Prosper Capital LLP (FRN 453007). That means we operate under the umbrella of a fully authorised company and they make sure we are abiding by the FCA rules including those governing financial promotions.
In respect of peer to peer lending, The House Crowd operates under interim permission number 665205.
On peer to peer loans, returns quoted are net of any fees. The House Crowd charges the borrower rather than the lender.
Fees on equity investments are usually based on a percentage of them money raised which constitutes the platform fee, and are charged to the SPV. These fees are usually around 5%.
Specific information on all fees charges is clearly detailed in the information pack for each investment
We have a growing number of Muslim investors investing through The House Crowd and we have been told that Buy to Let investments, those that do not offer a fixed interest rate, are a Sharia compliant investment opportunity.
To comply with FCA regulations you must register on our website as either a “Crowdfunding” (Elective Professional Investor), “Sophisticated” or “High Net Worth” Investor. We have detailed the requirements of the investor categories during the registration process.
Once registered, prior to making an investment you must upload a proof of address and identification plus complete a Source of Funds form in line with the government's Anti-Money Laundering requirements.
Please note if you wish to invest in a spouse or partner’s name as well as your own, or in a company name, you will need to set up a separate account on the website for them as the investments must be kept separate for regulatory reasons.
Yes, but anyone who is not a UK resident must satisfy themselves that they are complying with the laws of their own country before they invest. Please note overseas investors must supply two proofs of address the first time they invest with us in order to comply with AML legislation. Bank account statements and utility bills are acceptable but mobile phone bills are not.
Yes, if you choose to do so, but we will need the company registration certificate, ID for the shareholders and directors and a completed Source of Funds form.
If you also intend to invest individually please note that you will need to set up a separate account.
The House Crowd acts independently of the SPVs and is simply a listing platform. Investors remain legal shareholders of the SPV and the property.
In respect of debt investments, your money would continue to be protected by the legal charge.
We have contingency plans in place to manage the situation in the unlikely event of insolvency.
The minimum investment is currently £1,000. There is no maximum limit.
Upon registration, we will then set up a House Crowd online wallet for you. You can then transfer money in to your Investor Account by debit card or bank transfer. Cash deposits are not accepted. It is important that you quote the unique one off bank reference number you are issued by email by the website if you choose to send funds by bank transfer. Failure to do this will mean a delay in your funds arriving in their intended location.
Any funds transferred in respect of an Investment are initially sent to Mangopay via Barclays UK, and each day funds are then transferred to a segregated client account held in trust at ING Luxembourgh which means your funds are 100% guaranteed, unlike the FSCS in the UK which only guarantees 75%. Mangopay Terms and Conditions can be viewed here:
When the investment listing becomes fully funded, your money will be transferred to our solicitor’s client account and this money will only be used to fund the original investment offer.
In respect of equity investments, once the property is purchased, you have a legal share in the SPV that owns the property and your rights are protected by the company’s articles.
In respect of debt investments, once the loan is made your money is protected by way of a legal charge (registered at the land registry) over the property.
Whilst with the solicitor your money is protected by the Financial Services Compensation Scheme (up to £75,000).
Mango Pay is our payment provider. They formed in France in 2013 from parent company Leetchi, who are a European electronic finance institution. They provide online payment services for more than 500 clients in 28 countries.
Mango Pay create an individual electron wallet for you upon registration. When you make a deposit or investment, that money is held in a ring fenced account operated by Mango Pay (ING Luxebourg) until the investment is fully funded. Your funds are initially paid into a Barclays account in the UK if you invest by bank transfer, or processed by a Parisian entity, Crédit Mutual, if you pay by card. The funds are then transferred to the above ring fenced account.
For more information about Mango Pay and how your money is protected Read Our Blog
A Special Purpose Vehicle is a UK-incorporated Limited Company specifically set up for the purpose of purchasing the property.
The Direct Marketing Directive cancellation rights only apply to services provided to consumers. In completing the online application to invest and transferring the funds, this is done in the course of business and the contract is deemed to have been performed.
However, we do allow a cooling off period of 14 days provided we have not already exchanged on the relevant property or completed on the loan.
Funds will be returned to investors in full or, if the investor would prefer, they can be moved to an alternative investment.
All costs associated with the purchase of a property are paid for by the SPV out of the investment raised.A full breakdown of costs is given for each B2L project we offer.
House Crowd Property Management Limited (HCPM) is appointed to manage the SPV. HCPM duties may include appointing and supervising letting/management agents, maintaining the property, maximising rental income, arranging for bookkeeping/accounting and filing annual returns.
HCPM will charge an asset management fee of 10% of the net rental generated by the property (e.g. gross rent received less any letting agent or property management fees) and will also be entitled to 10% of the net profit made on sale.
All our investment opportunities are subject to thorough due diligence which will include RIC's surveys, legal checks on title, as well as our own in-house assessment and approval.
Upon registration you will be given access to your portfolio dashboard ‘My Portfolio’ where you can view all your investments and track their progress. You will also have access to a projects status page on the website which gives you information on the current status of all projects, development deals and P2P loans.
Please note the wallet payout option is not yet implemented but should be by the the third quarter of 2017. At present we pay out dividends, interest and capital by bank transfer. When the wallet facility is implemented, you will be able to link your bank account to your wallet, and withdraw funds to it. At no stage would we ever be able to withdraw funds from your bank account.
There will be no charge for withdrawals, but please note that they must be of £0.06 or more. All Mangopay wallets are GBP wallets, so funds will be withdrawn in GBP.
Most SPVs provide that you are free to sell your share to a third party at any time.
The House Crowd can help you to find a buyer but please note we will charge a fee for doing so as this is a legal transaction with a degree of paperwork involved. The fee is a minimum of £50 + VAT per buyer that we source for your shares. Please note there is no guarantee you will be able to find a buyer and selling shares in an unlisted company may not always be possible. Please refer to the relevant project investment pack for full details.
The SPVs were, until April 2016, distributing dividends inclusive of a 10% tax credit and this was reflective on the tax vouchers sent out (a link for further information on this can be found here: https://www.gov.uk/tax-on-dividends/previous-tax-years). From April 2016, dividends are paid without the tax credit, as per HMRC guidelines. Interest payments for P2P and development deals are also paid gross. We will issue you with the appropriate tax vouchers at a later date and you are required to declare their interest and dividend payments and pay any tax owed.
You can download a copy of our tax guide by clicking here.
We cannot give any individual tax advice for UK or overseas investors. Please speak with HMRC, the appropriate body in your own country of residence or your tax advisor about your personal circumstances.
The Land Registry website states that the public records exclude sales below market value (which many of ours) are and also sales to corporate bodies (which most of ours are).
If you would like to read it for yourself, visit: http://www.landregistry.gov.uk/market-trend-data/house-price-data-exclusions
Should you have a complaint you may report it by:
Email: [email protected]
Telephone: 0161 667 4269
You must state your full name and the nature of the complaint.
The House Crowd will:
1. Log the complaint
2. Treat the complaint fairly and advise on the next steps
3. Aim to resolve the complaint within 5 working days
4. Provide regular updates until the complaint has been resolved
5. Use any complaints to review the area of business to which it relates
Investors may also contact the Financial Ombudsman Service (FOS), to carry out an independent review of the complaint.
You may like to take a look at our dedicated YouTube channel in order to learn more about us – there are numerous videos explaining how we work and also videos of answers to some of our most frequently asked questions – we update this channel all the time so please keep going back to it:
Click here to go to The House Crowd's YouTube channel.