Frequently Asked Questions (FAQ)

Lending Questions

Basics
What does Relendex do?
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Relendex is a peer-to-peer exchange which operates in the UK commercial property sector. Relendex matches Lenders to Borrowers and facilitates loans that are secured on commercial property.
What is peer-to-peer lending?
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Peer-to-peer lending is a form of direct lending which matches Lenders with Borrowers via an online platform. It allows Lenders to take control of their own investment decisions and lend directly on self-selected lending opportunities. It provides funding to Borrowers without the involvement of a bank or other financial institution.
Who can invest through Relendex?
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Anyone can invest through the Relendex exchange, with the exception of US citizens. Lenders must be able to pass our Anti-Money Laundering and Know-Your-Customer checks.

Current Lenders who invest through Relendex are varied and include individuals, High Net Worth Individuals, Family Offices, Corporates, Investment Funds, Wealth Managers, Private Banks, Corporate and Private Pensions Funds and Trusts.
How much can I earn on Relendex?
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Loans on Relendex pay Lenders interest rates of 7-10% p.a. Please visit the Statistics page to see the current average blended interest rate.
How safe is my money?
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Money that has not yet been invested in a Loan Part: is held by Relendex’s Custodian Bank, NatWest Bank plc, in a segregated Client Bank Account. This includes all money held on the platform, whether it is in your Main Account or held as a bid in an on-going auction

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 of loans (including the rates of default) 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 the resulting need to enforce and realise security. You will not be able to bring to a claim for compensation from the Financial Services Compensation Scheme (FSCS).

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.
What is the risk?
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As with all investment products, peer-to-peer lending carries a degree of risk. Relendex carries out extensive legal and commercial due diligence and requires a formal independent Valuation to be carried out on all assets offered as security. Nearly all of our loans are secured by First Legal Charges over the subject asset or assets.

In some cases, Relendex takes additional collateral and/or Personal Guarantees. Interest is often retained in escrow. Loan to Value on each loan is set at a level that the Credit Committee regards as prudent (to safeguard repayment of capital and interest) having regard to the nature of the loan, asset and other factors associated with a particular loan.
Does Relendex offer an ISA?
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Yes. Relendex offers an Innovative Finance ISA (IFISA) allowing Lenders to earn tax-free interest on loans. Please visit the IFISA page , which has its own FAQ section, for more information.
About Relendex
What does Relendex stand for?
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Relendex stands for Real Estate Lending Exchange.
Is Relendex regulated?
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Yes, Relendex Limited is fully-authorised and regulated by the Financial Conduct Authority and entered on the Financial Services Register - FRN 723117 for Peer to Peer lenders. Relendex also has ISA Manager status granted by HMRC, which enables it to offer UK taxpayers an Innovative Finance ISA.
How does Relendex make its money?
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Relendex makes its money through charging fees to Borrowers. These fees cover Relendex’s operating, transaction, management and monitoring costs. At no point does Relendex take any fees from Lenders.
What will happen to my Loan Parts if Relendex ceases to trade?
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Should Relendex cease to trade, it has an agreement with a third party administrator to manage all Loan Parts on behalf of the Lenders. This administrator will administer the payment of interest and the return of capital to Lenders in accordance with sums collected and repayments of principal received from relevant Borrowers.
Lending Guide

Getting started
Ok, so I want to lend with Relendex, what do I need to do?
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First you will need to register with Relendex by completing the Lender Registration Form. You will need your passport to hand as it will be used to carry out the standard Anti-Money Laundering (AML) and Know Your Customer (KYC) checks.

Once you have passed all the checks, agreed to the online Lender Terms & Conditions, and signed the online limited Power of Attorney, your account will be approved. You can then fund your account and start lending on the exchange.
I don't have a valid passport, can I still be a Lender?
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Yes. You can still be a Lender, provided Relendex is able to verify your identity through other documents such as your driving licence, utility bill or bank statement.
Do you accept international Lenders?
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Yes, we accept international Lenders, with the exception of US citizens. As Anti-Money Laundering (AML) and Know Your Customer (KYC) checks differ for international lenders, a member of the team will contact you once you have registered, to complete the process.
What is the minimum amount I can invest into a loan?
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The minimum amount is £500.
How long can I lend money for?
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Loans on the Relendex platform are typically from 12-36 months. However, Relendex’s Resale Marketplace (RMP) allows lenders to both sell their Loan Parts (for an early exit) or buy existing Loan Parts on already fully funded Loans, on a matched-bargain basis.
Can I access my money at any time?
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At any point during the Loan period you may sell your Loan Part at par and currently without charge on Relendex’s fully automated Resale Marketplace.

Please note, whilst, the RMP is active, there is no guarantee that you will be able to sell your Loan Part on it. When bidding on an auction you should be prepared to hold your Loan Part to term.
Do I need to transfer funds to Relendex before I can start lending?
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Yes, funds will need to be lodged with the Custodian Bank (Natwest Bank plc), before you can start bidding in auctions.

It is important to include your client number on the bank transfer, so that Relendex can correctly allocate your funds. Failure to do so, may result in a delay before you are able to bid in auctions.
Is there a charge for depositing funds?
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There is no charge for depositing funds. However, you may incur banking charges for International transfers. To the extent Relendex incurs such charges such amounts will be deducted from the balance transferred.
Is there a charge for withdrawing funds?
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There is no charge for withdrawing funds to the UK bank accounts for next day settlement. You may incur charges for International transfers. To the extend Relendex incurs such charges the amount will be deducted from the amount withdrawn or taken from your account with Relendex.
How are my funds allocated to loans?
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Once you make a bid, your bid amount will be blocked at the Custodian Bank pending the outcome of the auction. When the auction is fully funded, your funds will be allocated to the lender group associated with that particular loan.

In the unlikely event that a Loan Request does not raise all the necessary capital, the Loan is deemed unsuccessful and all your funds will be unblocked and available to you to bid in other loan auctions.
Do you charge any fees for lending?
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No, we do not charge Lenders any fees for lending on the platform.
Am I liable for tax on the interest I receive?
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Yes, in the UK you are liable for income tax on interest that you receive as a Lender. As part of its service, Relendex makes available online reports of income and deductions in each tax period. Relendex is not currently required by the UK tax authorities to deduct withholding tax (WHT) on interest paid to individual lenders, nor to companies that are subject to UK Corporation Tax. Lenders should seek independent professional advice in assessing their liability to taxation in their relevant jurisdiction.

UK Taxpayers do not pay any tax on interest earned on Relendex’s IFISA.

You can find more information here.
How our loans work
What types of loans are available on Relendex?
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Relendex arranges secured funding for commercial real estate investments, developments and bridging loans.
How do I begin to lend?
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When you are ready to start lending you can visit the Auction Marketplace, where you will see a list of live auctions. Auctions are loans that are in the process of seeking funding. If you see a loan that interests you, you can click on the listing and see in-depth details about the property and the terms of the loan.

If you decide that you would like to lend on the loan, click on ‘Make a Bid’. It is here that you are able to decide how much you want to lend on that particular loan. After entering the amount you want to lend, click the ‘Place Bid’ button. Please note, although we use the word ‘Bid’, other Lenders will not be able to outbid you as Relendex only runs Set Rate Auctions; so as soon as you bid that Loan Part is allocated to you.
How much should I lend on each loan?
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How much you lend is up to you, however it is a good idea to make multiple bids on a loan, so that if you want to sell part of your loan you can offer it on the Resale Marketplace. It is also prudent to spread your lending over a number of different loans.

You may also buy available Loan Parts in the Resale Marketplace for loans that have already been funded and drawn down. Learn more about how our Resale Marketplace works here
Who are the Borrowers that come to Relendex?
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Our Borrowers are mainly experienced property investors and developers all of who have been thoroughly vetted by Relendex.
How does Relendex decide which loans to list?
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Relendex’s Lending Team carries out an extensive due diligence process on each loan application. [Due Diligence page link] The process and methodology with which we review loans was designed by the former head of banking at the Rothschild Banking Group.
What information is provided about each loan?
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Detailed information is provided on every loan. Particulars include: The property name, risk rating, loan amount, term, Loan to Value ratio, average interest rate, and other salient details. Relendex provides loan information tabbed separately as Loan and Key Property Details; Location and Description Details; Tenancy Details.

Anyone can view the Loan and Key Property Details. However, only Approved Lenders can also view all detailed documents such as Executive Summaries and Valuation Reports in the Virtual Data Room.
Can I choose which loans I lend my money on?
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Yes. Only you can bid for the amount you want to lend in loan auctions that you choose, which means you have direct control over which loans you participate in.
What is the Loan-to-Value (LTV) on the loans?
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Loan to Value is the loan amount expressed as a percentage of the value of the property asset provided as security. The Loan-to-Value varies from loan to loan. New loans are capped at a maximum LTV of 70%.
How does Relendex monitor drawdowns on development loans?
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Relendex employs Monitoring Surveyors who ensure that the current value is always sufficient to justify the relevant drawdown taking into account the remaining costs to complete the development. Relendex ensures that at no point during the loan period can a Borrower draw more than the covenanted Loan to Value percentage.
When is my interest paid?
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Interest is normally paid quarterly and is credited to your Lender Account. You may then either make a withdrawal request or re-lend the funds in another loan.
What happens if the borrower doesn't pay?
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In this unlikely event Relendex will notify Lenders immediately if there is a borrower interest or capital payment shortfall and will provide a reason for it, to the best of its knowledge and ability. Where the delay is temporary and can be resolved, no default will occur. In the event of a more serious problem Relendex will, acting as Lenders' agent and based on advice, exercise its security and appoint a Law of Property Act (LPA) Receiver and, where appropriate, will sell the secured property.
What happens if a borrower repays their loan early?
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If a borrower repays their 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 Loan 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.
Legals
What contractual arrangements do I have with the Borrower?
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Relendex operates a direct lending model, which means you lend directly to the Borrower. The terms of this arrangement are set out in the Terms & Conditions in the Loan Facility Agreement (LFA).

This direct relationship with the Borrower is established following the successful completion of an auction in which you have placed a bid. The Lender Power of Attorney (LPoA) you sign before becoming an approved Lender allows Relendex to novate the Loan Facility Agreement to you once the auction is fully funded and closed.
What is Lender Power of Attorney?
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The Lender Power of Attorney (LPoA) 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 create a direct lending contractual relationship between the Borrower and each Lender. As part of the registration process you will be asked to sign a form granting Relendex this LPoA. This is a limited Power of Attorney granted to cover the process of novation only for Relendex platform transactions only.
What does Novation mean?
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Novation means replacing a party to an agreement with another party In respect of the Loan Facility Agreement the novation replaces Relendex Lending Limited (RLL), 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 the Borrower and the individual Lenders.
Why is Novation necessary?
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Current UK legislation requires firms engaged in peer-to-peer lending to ensure that individual Lenders have a direct contractual relationship with the Borrower. However, as the Loan Facility Agreement (LFA) has to be negotiated prior to the loan auction, it is essential that the Borrower initially contracts with RLL (the Facility Provider). Following completion of the loan auction, the process of novation allows Relendex to transfer this contractual relationship with the Borrower to individual Lenders.
What is the Loan Structure?
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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.
What are the roles of Relendex Limited and Relendex Lending Limited?
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Relendex Limited (Relendex) is the platform operator; it also acts as the agent for all individual Lenders. Relendex Lending Limited (RLL) is a wholly-owned subsidiary of Relendex Limited and acts as the Facility Provider.

Relendex, on behalf of the Facility Provider, identifies Borrowers and their Loan Requests. It then negotiates Loan Facility Agreements with Borrowers. The LFA contains the Key Contract Terms. Once these terms have been agreed, the Facility Provider enters into the Loan Facility Agreement. The Loan Facility Agreement makes it clear that the Facility to be made available to the Borrower is provided not by the Facility Provider itself but by prospective Lenders who bid, via the Relendex Platform, to participate in the relevant loan.
How does the security work?
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The Security Trustees take 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 relevant Lenders, both as a group and as individuals in proportion to their participation in the loan, under the Trust Deed.
Resale Marketplace (RMP)
What is the Resale Marketplace (RMP)?
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The Resale Marketplace is Relendex’s secondary market where Lenders can buy and sell Loan Parts on a matched bargain basis. The RMP allows Lenders flexibility over their loans and the opportunity to sell their Loan Parts (currently at no cost), when they want access to their cash.

The RMP also offers Lenders a way to diversify their portfolios, as they can spread their investments over a wide range of loans listed on the RMP.
What’s the difference between Loan Parts bought in a live auction and Loan Parts bought in the Resale Marketplace (RMP)?
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There is no difference between the underlying loans sold on the Resale Marketplace and the ones sold during a live auction. Loan Parts appear on the RMP only because their owner wishes to sell them before the loan period expires. Relendex will not, so far as it is aware, allow the listing of any Loan Part that is subject to any form of default, or in any way has been compromised. The RMP also provides an opportunity to new Lenders, who missed out on completed auctions, to buy Loan Parts on the same terms at which they were initially offered and start earning interest on them immediately.

All Loan Parts for sale on the RMP are ‘Approved’ by Relendex.
What does ‘Approved’ mean?
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Approved is the designation given to all Loan Parts that can be sold on the RMP. They are Approved because they have complied with a checklist of criteria which demonstrate that they are performing well and that buyers of these Loan Parts on the RMP can be as confident about their future performance, as the original Lender.

See below for Relendex’s checklist for the criteria loans must meet for their Loan Parts to be ‘Approved’.

Checklist for Approved Loan Parts offered through the RMP:
  • The Loan has completed and drawn down and formal valuation and security are in place.
  • Borrower interest has been paid up to date.
  • Borrower Loan Covenants are compliant (including current valuation).
  • There is no known loan-specific information that would adversely affect the loan or its security.
  • The relevant loan has at least 1 month until expiry.
What are the benefits of buying from the Resale Marketplace?
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The Lender starts to earn interest straight away and does not need to wait for the loan to close and be drawn down. The RMP offers an effective way to diversify a loan portfolio.
Will I definitely be able to resell my Loan Parts?
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Our Resale Marketplace operates on a ‘matched-bargain’ basis; this means that whilst it allows Lenders to resell Loan Parts someone else has to be willing to buy them. The RMP is active and to date all Loan Parts have sold within 10 days of listing.

Please note that Relendex offers no guarantee that you will be able to sell your Loan Parts in the RMP.
Do you charge any fees on the Resale Marketplace?
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There are at present no fees for either buying or selling Loan Parts in the Resale Marketplace.
Do I have to buy the full amount of a Loan Part listed on the Resale Marketplace? Is it possible to buy a smaller portion of that Loan Part?
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Unfortunately not, at present you must buy a whole Loan Part. ‘Auto-partitioning’ of Loan Parts is however a feature that we hope to introduce in the future.
Why is the Total Purchase Amount greater than the Outstanding Principal of the Loan Part?
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The extra cost is the interest that has been accrued by the seller on the Loan Part since the last interest payment date. Relendex loans pay interest on a quarterly basis. To ensure Lenders selling their Loan Parts on the RMP do not miss out on interest they have accrued since the last interest payment, the buyer compensates the seller for the accrued interest from the last interest payment date up to the date of sale of the relevant Loan Part. For this reason, Relendex adds the accrued interest amount to the Outstanding Principal Amount to calculate the Total Purchase Amount.

On the date of the next interest payment the buyer receives the full interest amount for the quarter, this reimburses the buyer for the extra interest amount paid when the Loan Part was purchased.
Am I able to delve deeper into loan details before buying?
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Yes. All approved Lenders have access to our Virtual Data Room where they can see the Executive Summary and Valuation Report for each loan available on the Resale Marketplace. You are also of course welcome to email Relendex at lender-support@relendex.com should you have any further questions.
How long before I start earning interest on Loan Parts bought in the Resale Marketplace?
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There is no delay on earning interest on Loan Parts bought in the Resale Marketplace as the loan has already drawn down and the Borrower is already paying interest.
Are there times when a Loan Part cannot be listed on the Resale Marketplace?
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Yes. Loan Parts cannot be listed until; i) the loan is drawn down; ii) just before a quarterly interest payment; iii) within the last month of the Loan Part’s term or iv) in the event that the Loan Part has not met our Approved Loan Checklist criteria.
ISA Questions

Innovative Finance ISA (IFISA)
What is the Relendex Innovative Finance ISA?
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The Relendex Innovative Finance ISA (IFISA) is an HMRC approved individual savings account which allows investors to earn tax-free interest on their Relendex investments.
Do I need to be a pre-existing Lender to open an IFISA account?
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No, any UK taxpayer can open an IFISA account with Relendex.
Why do I need two email addresses to set up both regular Lender account and IFISA accounts?
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HMRC requires clear separation between the funds in Lender and ISA accounts, To distinguish between your accounts, unique email addresses are required for each account.

*If you do not have a second email address, it is simple to set a free one up with a new provider and auto-forward all incoming mail to your main account, so you never miss an email from Relendex.
Is there a limit to my IFISA?
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Yes, there are limits to the amount that you can subscribe or invest in an IFISA in each tax year (beginning on 6th April and ending on the following 5th April of the following year). The maximum you can subscribe in the 2017/2018 tax year is £20,000.

The £20,000 limit is the annual allowance for All ISAs (in aggregate) held by an individual. This applies to all Cash, Stocks & Shares, Innovative Finance or Lifetime ISAs that you open in the same tax year. It is the ISA holder’s responsibility to stay within the limits.

*ISA Managers report deposits to HMRC, so any individual exceeding the permitted limit will be identified and taxed accordingly.
How many IFISAs can I have?
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You cannot subscribe or invest in more than one IFISA in each tax year but you can subscribe to multiple types of ISAs in one year so long as you do not exceed the annual allowance limit.
Is the Relendex IFISA a flexible account?
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No, The Relendex IFISA is not a flexible ISA. This means that you cannot replace, in whole or in part, cash you have withdrawn from your IFISA, and any and all subscriptions made during the tax year will count towards your subscription limit for that tax year.
What is the minimum investment?
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Minimum investment for new ISA funds is £500. For transfer of existing ISAs, there is a minimum limit of £1,000
Is there a transfer out fee?
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Not at present, but we reserve the right to introduce one at a future date.
Are there any limitations to withdrawing funds from my Relendex IFISA?
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No. There are no limits to withdrawing cash held in your account. To withdraw money held in yourLoan Parts you will first need to either sell them in the Resale Marketplace or wait for a loan repayment to provide the cash for the withdrawal.

When withdrawing funds from your Relendex IFISA always remember that the Relendex IFISA is not flexible. This means that you cannot replace, in whole or in part, cash you have withdrawn from your IFISA, and any and all subscriptions made during the tax year will count towards your subscription limit for that tax year.
Can I transfer funds from my existing Relendex non-IFISA account?
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No, HMRC does not allow such transfers. However, ISA rules do allow you to sell your Loan Parts in the Resale Marketplace, withdraw your cash and then deposit it into your IFISA. Please be aware sales take place on a matched-bargain basis so there is no guarantee your Loan Parts will find buyers.
How can I close my IFISA account?
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To close your IFISA you must provide us with written instructions, via either email or post.
How can I contact Relendex about my borrowing requirements?
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Please email borrower-support@relendex.com or call 020 7729 0070 with your enquiry. Please provide the following initial information as it will help us speed up our decision.

  • Address of property
  • Type of property
  • Approximate age
  • Principal use
  • Total area
  • Tenancy schedule (where applicable)
  • Total rent
  • Estimated market value of property
  • Date of last valuation
  • Loan amount you are seeking
  • Purpose of loan
  • Photo of property
Secured Portfolio Product
What is the Relendex Secured Portfolio ISA?
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The Relendex Secured Portfolio ISA combines the secured lending available on the Relendex Exchange with a unique Portfolio created for each lender in order to reduce risk, hassle and provide a target rate of tax-free return in excess of that usually associated with an ISA.
How does the Relendex pre-existing Secured Portfolio ISA work?
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The Relendex Secured Portfolio ISA uses an algorithm to allocate loan parts available in both Relendex’s Live Auctions and from its Resale Marketplace. Only the highest grade investment parts (A+ and A) are allocated to each Secured Portfolio. As these are repaid by Borrowers, new parts are allocated, so that each Secured Portfolio remains invested in Loan Parts.
Why is there a minimum investment of £2,500 in the Secured Portfolio?
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Yes Relendex Loan Parts are broken down into £500 units, The minimum required number of units to create a diversified portfolio is 5 units, that makes a minimum investment of £2,500.
What if I do not have £2,500 to lend?
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You can still invest your ISA money directly in any of our loans either in the Live Auction or the Resale Marketplace
What is the Target Interest Rate?
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The Target Interest Rate is determined by each portfolio auction. The Target Rate, together with the duration of that rate, is shown for each Issue’s auction particulars. The Target rate is the rate of interest a lender will receive on the money placed in the Secured Portfolio, after all charges, and before any exceptional events. The Target Rate runs in force until the end of the loan period.
What happens when the loan period expires?
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At least 30 days before the loan period expires Relendex contacts Lenders to offer them the opportunity to roll their loans into a new Secured Portfolio ISA. Depending upon market conditions the duration and target interest rate may vary from time to time.

Any Lender choosing not to lend in the new Secured Portfolio can lend these funds credited to their ISA Lender Account to any of our Borrowers either on the Live Auction or the Resale Marketplace, or can withdraw their funds in the usual manner.
Why are there weekly auctions?
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Relendex anticipates Borrowers’ weekly funding requirements and matches the demand to the weekly Secured Portfolio issue loan amount. At the end of every week, all bids for the Secured Portfolio are matched to underlying Loan Parts.
What if the the weekly auction is full?
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As and when a weekly auction is fully taken up, the Secured Portfolio ISA will not be available until the following week. Lenders missing out on the weekly auction can wait until the next week, or bid either in the Live Auction or the Resale MarketPlace for Loan Parts.
Will Target Rates change on the Secured Portfolio ISA?
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Once a Lenders’ bid is successful, the Target Rate will be fixed for that loan issue’s duration. However, both Target Rates and durations will alter from time to time depending on market conditions.
Can I lend to the Secured Portfolio ISA and buy other Loan Parts?
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Certainly. The Secured Portfolio ISA is designed to give Lenders a better rate of return than Cash ISAs. The Secured Portfolio is a managed product that is based on auto-allocation so that investors don’t need to take individual lending decisions. The return is lower than our self-select IFISA , as Relendex is taking most of the risk, management and all of the day to day lending decisions. Relendex hopes that once our Lenders feel confident about using our Exchange they will enjoy choosing loans themselves and achieve higher rates of return.
Are There any Charges associated with the Relendex Secured Portfolio?
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The Target Rate of Return is stated net of all services charges. However, there is a charge on cash withdrawals from the Secured Portfolio, if they take place within 12 months of the original loan issue. This charge is the greater of £25 or 1% of the amount of cash withdrawn.
When is interest paid?
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Interest accrues daily but is paid quarterly in arrears. This means that interest is paid up until the day on which notice is given of withdrawal, but the Lender cannot withdraw interest until it is credited on the relevant quarter day, or as part of an early withdrawal or on maturity.
What is an exceptional event that could affect the Relendex ISA?
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An exceptional event is one which is completely outside Relendex’s control and is not related to the performance of any single underlying Loan Part. The Secured Portfolio is designed to manage the lender’s risk and a single loan default would not adversely affect a lender. However, in the event that the entire UK property market, as defined by the UK House Price Index for new build property falls more than 10% in the loan issue period, then if an underlying loan defaults, the Lenders Capital may be at risk.
Does that mean that if the market falls 10%, Lenders may lose part of their capital?
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Absolutely not! The Secured Portfolio is very conservatively structured. The average Loan to Value is below 65% and some borrowers provide additional security too. In order for a Lender to lose even a small part of their capital, not only would a property have to realise less than 70% of its original valuation, but the additional guarantees and collateral given by the borrower would also have to realise no value. Only then if the whole market had fallen 10% or more would a Lender lose part of their capital.

If the UK House Price Index has fallen by more than 10% in the relevant period and the Loan Parts held by the Lender within his/her Secured Portfolio during the relevant period have not achieved the projected total return, then Relendex may, in its sole discretion pay a sum to Lenders to the difference between the projected total return and the actual total return.
Borrowing Questions

Basics
What does Relendex stand for?
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Relendex stands for Real Estate Lending Exchange.
What does Relendex do?
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Relendex is a peer-to-peer exchange which operates in the UK commercial property sector. Relendex matches Lenders to Borrowers and facilitates loans that are secured on commercial property.
What is peer-to-peer lending?
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Peer-to-peer lending is a form of direct lending that matches Lenders with Borrowers via an online platform. It allows Lenders to take control of their own investment decisions and not be reliant upon a bank or financial institution.
Is Relendex regulated?
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Yes. Relendex Limited is fully authorised and regulated by the Financial Conduct Authority and entered on the Financial Services Register - FRN 723117 for Peer to Peer lenders. Relendex has also been granted ISA Manager status by HMRC, which enables it to offer UK tax payers its Innovative Finance ISA (IFISA).
What are Relendex’s fees?
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Relendex charges Borrowers an arrangement fee, which is chargeable upfront and a quarterly Service Fee. Both charges directly relate to the value of the loan. The arrangement fee is paid in two parts, the first being a Commitment Fee, which is payable before the Auction; and the second part is payable when the Auction is completed and the loan is fully funded.

The Service Fee is paid quarterly in arrears and covers Relendex’s operating, transaction, management and monitoring costs. The Service Fee is disclosed in the Auction Particulars. An exit fee may be chargeable to the Borrower in the case of particular loans.
Is Relendex an online only exchange?
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Whilst all auctions are exclusively conducted on the Relendex online platform, Borrowers can contact Relendex’ underwriters via phone or email or by completing our online application form.
Getting Started
How can I contact Relendex about my borrowing requirements?
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Please email borrower-support@relendex.com or call 020 7729 0070 with your enquiry. Please provide the following initial information as it will help us speed up our decision.

  • Address of property
  • Type of property
  • Approximate age
  • Principal use
  • Total area
  • Tenancy schedule (where applicable)
  • Total rent
  • Estimated market value of property
  • Date of last valuation
  • Loan amount you are seeking
  • Purpose of loan
  • Photo of property
How will Relendex decide if it is prepared to post my loan requirement?
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Assuming your initial information falls within Relendex’s lending parameters, it will request a Professional Valuation and other due diligence data. Where appropriate, it will perform an interest cover calculation to ensure that rents cover the quarterly interest payments and any amortisation (partial repayment of principal during the term of the loan).

Once Relendex is satisfied with the results of these checks, it will proceed to agree the loan terms with you. You will then be asked to sign a Term Sheet and pay the commitment fee. When your loan is listed on the Relendex Marketplace, all supporting documents, including the Valuation Report, are placed in the Virtual Data Room making them viewable to all prospective lenders.
What responsibility do I have for the information I provide about a loan requirement?
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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), to be posted on the Relendex website (www.relendex.com) related to your particular loan requirement. Relendex does not take responsibility for Auction Particulars. Lenders rely upon the accuracy and completeness of the information provided by a Borrower.
What is my contractual relationship with Relendex and the Lenders?
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As a Borrower you are bound by the Borrower Terms & Conditions on the Relendex website and must 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 Term Sheet, Mandate Letter, Loan Facility Agreement (LFA) and security documents including a Charge document. By the terms of 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 with their individual bids becoming 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 LFA. You should read these documents carefully and where necessary take independent professional advice.
What is a Borrower Power of Attorney?
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The Borrower Power of Attorney gives Relendex Limited, the Operator of the Exchange, the authority to novate the LFA in favour of each of the individual Lenders in order to create a direct contractual relationship between the Borrower and each Lender.
What does Novation mean?
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Novation means replacing a party to an agreement with another party. In respect of the Loan Facility Agreement the novation replaces 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.
Borrowing with Relendex
What kind of loans are available?
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Relendex facilitates short and medium term senior and mezzanine finance from £250,000 to £3 million for commercial and residential property investments and owner-occupied commercial properties. Please visit Indicative Lending Criteria for more details
Do you lend on residential assets?
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Yes, Relendex arranges funding for residential investments and certain developments, but not owner-occupied residential properties.
Is the interest rate I pay fixed?
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Yes. Borrowers pay a fixed interest rate throughout the loan term.
When do interest payments commence?
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Interest repayments only begin after the auction is closed and the Borrowing requirement is fully funded.
What happens once the auction has been successful and my loan requirement is funded?
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Relendex will instruct the appointed solicitors to carry out the remaining legal due diligence on behalf of the Lenders. Once solicitors are satisfied and the conditions of the Loan Offer have been met, you will be required to sign the agreed Loan Documentation, fulfil any other conditions, and pay the balance of the arrangement fee. The loan funds will then be available for drawdown.
Can I repay my loan early?
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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.
What costs are associated with the transaction?
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  • An arrangement fee for a successful auction
  • Valuers’ fees
  • Solicitors and other professional costs
  • Quarterly service fees to cover our operating, transaction, management and monitoring costs.
Who do these Solicitors and Valuers act for and who pays them?
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The appointed Solicitors and Valuers act for the Lenders but their fees are paid for by the Borrower. This is in accordance with standard bank lending practises.
Is the Commitment Fee refundable?
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In the unlikely event that the loan amount is not taken up in full by our Lenders the Commitment Fee would be refunded.

The list of questions and answers above is provided as a guide as 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 under the Data Protection Act, Registration Number PZ2708231
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