Make an enquiry

    Enquiry Form









    Contact

      Enquiry Form






      Supporting Document


      We are welcoming clients back to our offices Find Out More
      FJG Solicitors in Essex, Colchester, Chelmsford, London – Fisher Jones Greenwood
      • 0845 543 5700
      • [email protected]
      • Make an enquiry
      • Online Payment
      • Home
      • Services
        • Services for you
          • Advocacy
          • Civil & Commercial Disputes
          • Clinical and Medical Negligence
          • Conveyancing
          • Employment Law
          • Family Law
          • Children Law
          • Immigration & Visas
          • Notary Services
          • Personal Injury
          • Wills, Life Planning & Probate
        • Services for business
          • Academies Portal
          • Agricultural and Rural
          • Business Immigration
          • Commercial Dispute Resolution
          • Commercial Litigation
          • Professional Negligence
          • Commercial Property
          • Construction Law
          • Planning Consultancy
          • Corporate and Commercial
          • Education Services
          • Employment Law
          • Healthcare Services
          • International Services
          • Landlord & Tenant Services
        • Services by sector
          • Agriculture & Estates
          • Care Homes
          • Charities & Social Enterprise
          • Construction
          • Education Law
          • Energy
          • Family Owned Business
          • Healthcare & Dentistry
      • Our people
      • About us
        • CSR
        • Awards
        • Our Vision
        • Accessibility
        • Careers
        • Work Experience
        • Equality & Diversity
        • FLOCC
        • FJG Foundation
        • SAFE Forum
      • News, Events & Insights
      • Blog
      • Podcasts
      • Contact us
        • Colchester
        • Chelmsford
        • Clacton-on-Sea
        • Billericay
        • Braintree
        • Frinton-on-Sea
        • Holland-on-Sea
        • London

      Property technology companies ‘Prop tech’ and crowdfunding

      14 April 2016 by Marketing Team

      FJG Marketing
      Property Technology and Crowdfunding

      What happens if you don’t have sufficient funds to invest in property and are unable to afford a mortgage? Property Crowdfunding is an alternative avenue through which you may be able to buy shares in a property.

      Crowdfunding refers to fundraising from many individuals through an online platform. It links individuals or businesses seeking capital to individuals who are ready to invest. As housing prices continue to increase, property crowdfunding enables individuals to step onto the property ladder with minimum investment. A new report from the independent Social Market Foundation suggests that property crowdfunding offers young buyers (ages of 25-35) with an opportunity to buy property.

      The Model

      Property crowdfunding involves a ‘crowd’ of investors coming together to buy a property which is then let to tenants. Investors are able to buy shares in a Special Purpose Vehicle (SPV) designed to purchase a property. An SPV is a limited company, established specifically for purchasing that individual property. Investors are able to acquire a stake in a number of properties simultaneously. The risks involved in investing through an SPV relate to the value and income derived from that specific property.

      There are currently three main companies offering products. These are House Crowd, Property Moose and Property Partner. It is believed that the total amount of investments across these three main providers is £40 million. Investors are able to buy equity stakes ranging from £10 to £500. Property Partner also plans to create a property stock market, where people can buy and sell shares in their flats.

      How do Property Crowdfunding platforms such as Property Partner work?

      The platform places a deposit on a number of developments and then posts the properties on their website once it has exchanged on a deal, but the idea is that investors eventually pay the full purchase price. Investors receive a rental income proportionate to their shareholding (net of any property management or maintenance fees) and also benefit from any increase in property value. Independent assessors revalue the properties regularly in order to adjust share prices. The platform is responsible for maintaining the rental property, hiring a firm to act as landlord.

      The property crowdfunding market offers a number of different products to consumers. The growth in this area suggests the market will continue to expand significantly.

      If you are interested in buying a property, please contact our property team who will be happy to assist. Please note that this blog has been written to inform you with regard to new legal structures available to allow individuals to buy interests in property and does not constitute financial advice. If you wish to obtain financial advice relating to investing in any such property you should obtain independent financial advice from a regulated financial adviser.

      Authors
      Archives
      Subscribe to RSS feed

      Recent Posts

      • Worth the wait
      • What is a section 37 report?
      • What is a section 7 report?
      @FJGSolicitors

      We've had a 5* review from Zoe: Moving home https://t.co/4lbJehtq0g

      19 hours

      RT @MistleyCC: How good did the new T20 kit look on Thursday?! 🔥 A massive thanks to @FJGSolicitors for sponsoring our kit this year! https…

      1 day

      We've had a 5* review from Nicholas: EXCELLENT ADVICE AND VERY EFFICIENT https://t.co/4lbJehtq0g

      2 days
      Billericay 01277 623132
      Braintree 01376 552828
      Chelmsford 01245 890110
      Colchester 01206 835300
      Clacton 01255 323103
      Frinton 01255 514100
      Holland-on-Sea 01255 818900
      London 08455 435700
      Sudbury 01787 373387
      • Disclaimer
      • Accessibility
      • Terms & Conditions
      • Privacy Policy
      • Cookies
      • Price & Service
      • Signup to our Newsletter
      • COVID-19 Risk Assessment

      Fisher Jones Greenwood is the trading name of Fisher Jones Greenwood LLP, a Limited Liability Partnership authorised and regulated by the Solicitors Regulation Authority and registered in England ( Number: OC305854 ). A list of members is available for inspection at the registered office at Charter Court, Newcomen Way, Colchester Business Park, Colchester, Essex CO4 9YA

      This website uses cookies & data collection

      Our website uses cookies, which are small text files that are placed on your computer by websites that you visit to distinguish you from other users. They are widely used in order to help website owners like us provide you with the best user experience possible. They also provide us with information that can help us improve our websites and marketing activities. By clicking an item or link on this website, you agree to the use of cookies and other data collection.

      Find out more

      We are welcoming clients back to our offices

      Differing tiers and three lockdowns later, Fisher Jones Greenwood Solicitors are now pleased to be able to welcome clients safely back to our offices.

      Remote working and the digitalisation of the way we work, have been key to keeping FJG and the rest of the country going.

      • We are now able to offer, pre-booked face-to-face appointments. Although, we are still able to offer remote appointments if preferred.
      • You can continue to visit our offices at any time to post any correspondence and documents through letterboxes.

      If you are visiting an FJG office, covid-19 safety rules of social distancing, hand sanitization, and the wearing of masks will still apply.

      • Please be aware you will also need to have your temperature taken on arrival.
      • There will also be protective screens in place to protect you and our staff.

      Please do not hesitate to contact your legal adviser by email or by telephone should you have any worries or concerns. Alternatively, please call our main switchboard number (01206 835300), and a message to return your call will be relayed to the relevant person.

      Best wishes
      Paula Cameron
      Managing Partner