Start earning a fixed 5% p.a. today,
and capitalise on our profit share.

INVESTtoRENT 5% p.a. Bond

  • 20% net retained profit after 5 years
  • 5% p.a. interest paid
  • Invest in property from £2,500
  • Residential portfolio 5 years of growth
You should be aware that there are risks to all forms of corporate lending. Please read our risk warning before deciding to lend. These loans are NOT covered by the Financial Services Compensation Scheme and clients will not have access to the Financial Ombudsman Service (FOS). All prospective lenders should seek an independent professional advice before lending.

Investment Details


InvestToRent is a new PLC set up to purchase a portfolio of entry level homes for buy to let, for a period of 5 years.
Investors benefit from 5% interest per annum paid quarterly and a share in the profit following resale of the houses in 5 years time.

Creating A Housing Ladder

The intention is to find tenants (would be first time buyers) who would like to purchase "their" house in 5 years' time, with no obligation.

Property Ladder

Whilst we will utilise a standard 6 month AST, the tenant knows we will sell in 5 years and would like it to be to them. They can feel more comfortable about laying down roots and turning this house into "their" home.

Rent is insured via a rental guarantee policy and cash is set aside to cover any rental void. We would only increase rents if the economic climate dictates that we must, this reduces financial pressure on the tenant and facilitates saving for a deposit.

We believe this helps our tenants to become first time buyers - in short, our proposition creates a housing ladder.

Issuer Description
INVESTtoRENT Holdings Plc
Income
5% interest per annum, payable quarterly in arrears or on redemption of the bond.
Terminal Bonus
At the end of 5 years, the properties are to be sold. It is anticipated that the company will benefit from capital appreciation. Invest To Rent offers the bond holders a terminal bonus based on 20% of the retained profits of the proposition.
Denomination
The nominal amount of the Bonds is GBP 1 after initial minimum investment has been attained.
Minimum Investment
The minimum investment is GBP 2,500.
Security
Secured by a first fixed and floating charge over the assets of the Issuer under the control of the Security Trustee; the assets of the Issuer will include a floating charge over the assets of the Borrower, which will be subject to a first fixed charge over the properties held by the mortgage lender.
Raise Amount
Maximum £4,300,000.
Term
5 years.
Redemption
Repayment of capital on the expiry of the term.
Availability
This offer is available for direct investment and ISA and SIPP and SSAS pension investments, provided that FCA suitability guidelines are followed.
Ranking
All the Bonds will rank pari passu.
Events of default
On one of identified events listed in the Bond Instrument, the Bonds will be redeemed immediately at the principal amount.
Withholding Taxes:
Income and bonus payment are paid net of basic rate tax for UK individuals and gross for pension schemes and overseas investors.
Transferable
Ownership of the Bonds can be freely transferred to another party.
Listed/unlisted
An application has been made to admit the Bond to trading on the Frankfurt Exchange.
Meetings of Bondholders
The Issuer may, at any time, convene a meeting of the Bondholders.

What could you earn?


What could 10 000 invested in INVESTtoRENT earn?*

Typical High St. bank 1.5% p.a. cash ISA
INVESTtoRENT 5.00% p.a. Bond
Plus 20% of the profit share
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Move the handle or click on the arrows to adjust the investment amount

The typical high street bank cash ISA rate is based on a 1.5% per annum interest rate where by interest is compounded once per year. Interest rates are based on 1 year fixed accounts over the last five years using data from the Bank of England.

The INVESTtoRENT 5.00% p.a. Bond is calculated using 'simple' interest over the full 5 year term. The 20% of the profit share will be based on the increase in the net asset value of the property portfolio at the time of redemption of the bond.

All figures are rounded to the nearest Pound. This calculator does not deduct any fees or taxes that may be payable. Past performance is not a reliable indicator of future performance and an independant financial advisor should always be consulted prior to investment.

The fact remains that, whether it's as a stepping stone to home ownership or a longer-term lifestyle decision for tenants, the rental sector is an increasingly important part of the housing mix.

Foundation Home Loans marketing director Jeff Knight