Investing With BunceCrowd
Am I able to invest?
What is the minimum that I can invest?
£10 is the minimum investment.
How are my investments secured?
In respect of debt investments (secured peer to peer lending), once the loan is made your money is protected by way of a legal charge (registered at the land registry) over the property.
A 1st or 2nd charge will be secured against a borrowers property or land against the loan.
Can I invest through a limited company?
Yes, on application ensure you state you are investing through a company when asked in our registration process.
Do you accept investments for overseas investors?
Yes, Please check that the country you reside in allows investments of this nature. In addition to photo ID, we would need proof of address identification (you’ll also need to check your country allows investments of this nature in the UK).
We accept investors who are resident in the EU, Switzerland, Canada, Australia, New Zealand, South Africa, United Arab Emirates, Hong Kong among others. Please note for legal reasons we cannot accept investment from residents of the United States of America.
Is my capital and interest returned to my wallet or bank account?
All monies will be returned to your eWallet unless notified otherwise.
When does my interest get paid?
Capital paid once the borrower has repaid the loan or the property is sold .
Interest is paid monthly into your eWallet.
How do I pay for my investment?
You can make payment for your investment either by debit card or bank transfer. We do not accept credit card payments.
Can I withdraw my money once invested?
Once the loan has completed your capital remains invested for the duration of the loan until repaid by the borrower, or the property is sold. However you can sell your debt to other investors in our secondary market.
What fees are BunceCrowd earning from my investment?
BunceCrowd charges £1500 fee to the borrower and also charges 8% property management fee per anum on the rental gross rental income.
What due diligence do you do on the borrowers and the properties?
In summary, we do everything we can to check borrowers ID and credit history, the property value, typical mean rental value for the area of the property and their ability to repay on time. Please refer to our underwriting manuals for full details.
In addition we also look at the size of the rental market and population of the area where the borrower is intending moving to.
Buying A Home With BunceCrowd
What is a SPV Limited Company?
A Special Purpose Vehicle is a UK-incorporated Limited Company specifically set up for the purpose of purchasing the property.
What are "capital gains"?
Capital gains is the term for a profit from the sale of a property or an investment.
What is the "original value"?
The purchase value of the property.
What is a "minimum term"?
The minimum term is how long you are locked in to renting the SPV – for BunceCrowd this is 3 years.
Creating a Homebuyer Account & Buying
How do I find out if I'm eligible to use BunceCrowd?
You must be at least 18 years old to apply and not over 75 years at the end of your minimum term. Only your retirement income will be considered if you want your term to go past your planned or state retirement age.
You will need to show payslips, bank statements and/or HM Revenue & Customs documents to confirm your income and to help make a decision on what size funding is sensible for you to take on.
Even though two people may have exactly the same income, their outgoings can be very different. So, as well as taking your income into consideration, it’s also important to think about your other financial commitments, and consider what effect future interest rate rises could have on your finances. This is to help guard against your rent becoming unmanageable.
Again, you will be asked to confirm your outgoings as funding will not be agreed if there is any indication that you cannot afford it or keep up the payments.please remember that changes to your personal circumstances can alter your financial circumstances as well.
What fees do you charge the home buyer?
BunceCrowd will charge a £250 pre-application fee to cover administration costs this will be applied when you submit your pitch to the Investors (if your pitch is not successful you will be returned 100% of your money) and a further £1250 will be paid.
How long does it take to verify my ID?
Our ID verification checks can take up to 24 hours. Once you have created your account you will be asked to upload a photo of your ID. You can do this straight away, but you can upload it another time if you don’t have details to hand.
To make our ID checks as quick as possible, please ensure you provide photographs of the documents requested and that they are clear and legible.
I've been refused a mortgage, can I still use BunceCrowd?
Yes, as long as you have lived in the UK for more than 3 years and are not bankrupted, are registered to vote and have a regular income.
What checks on me do you make?
Before you apply, we’ll ask for your consent to search the information held about you and your financial arrangements. Personal details about you and, in particular about your financial arrangements with banks and other financial service companies, may well have been passed on to credit reference agencies.
This and other publicly available information, such as the electoral roll, is held by the agencies and, with your consent, made available in connection with future loan or credit applications you may make. The services of a credit reference agency and also fraud prevention agencies will be used to help assess your application.
If I create an account does that commit me to purchasing a property?
No. Joining us is free and without any obligation. Once you have created your account you can view more detailed information about, plus you will send you a buyer’s guide.
How long does the process take?
Typically the process will take 30 – 60 days; from pitchinig to getting keys to your new home.
What's the typical turnaround time from pitch to keys to your new home?
Typically the process will take 30 – 60 days from pitch to getting keys to your new home.
What’s is the minimum term rental term?
The minimum term for BunceCrowd is 3 years.
Who manages the property?
Bunce Property Management Limited is appointed to manage the SPV. BPM duties may include appointing and supervising letting/management agents, maintaining the property, maximising rental income, arranging for bookkeeping/accounting and filing annual returns.
BPM will charge an asset management fee from the Gross rental generated by the property.
Who owns the property after its purchased?
A Special Purpose Vehicle (UK-incorporated Limited Company) is specifically set up for the purpose of purchasing the property and will own it on behalf of the BunceCrowd investors.
What happens if I want my money back for the shareholding in the Property?
Bunce will look to purchase your shares at the original value or Bunce 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 of the property. Bunce will support you until this happens.
Can I modify / decorate / add to the property?
Yes, as long as you enhance the value of the property and not cause damage that will in the future undervalue the property; you can always contact our accounts team for clarity before you start making changes.
What happens if BunceCrowd becomes insolvent?
In respect to our equity investments (Property Crowdfunding), the BunceCrowd acts independently of the SPVs and is simply a listing platform. The SPVs remain the legal possession shareholder of the SPV and the property.