CapitalStackers development funding passes £150m
CapitalStackers
by CapitalStackers
1y ago
Raising £540,000 for a development of 9 detached executive homes in North Yorkshire has taken CapitalStackers’ deals past the milestone of £150 million raised in total for building projects – whilst maintaining its loss-free record. Bank finance accounted for £124 million with CapitalStackers’ investors contributing £28 million. The Glam Living development in Church Fenton is typical of CapitalStackers’ unique contribution to property development – comprising a blend of P2P and bank finance that allows small investors to get involved in the kind of property development funding that used to be ..read more
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Stamping out the great lease fleece – an update
CapitalStackers
by CapitalStackers
1y ago
Back in December 2020, we highlighted the highly immoral practice [1] of housebuilders selling to new homeowners, but retaining the freeholds and selling them on to third parties who then charged a (seemingly innocuous) ground rent that doubled every ten years, building up over the years to terrifying amounts. At the time, we made it clear that while CapitalStackers is 100% pro-developer, we wanted no part of this pernicious practice, and would not lend to any developer factoring this into their business plans.  Bear in mind that the people forced to pay these extortionate ground rents we ..read more
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Are house price forecasters finally justified in using the C-word?
CapitalStackers
by CapitalStackers
2y ago
As we reported in September [1], the property market continued to boom despite the direst predictions of experts. But given recent global events, is there reason for pundits to predict a crash? In our last blog on this subject seven months ago, we largely came to the conclusion that things would, largely, turn out as they have so far. That is, no spectacular stampede to exit the house market and that, having sifted thoroughly through a wide range of historical metrics and commentaries on your behalf, we remained unruffled in the face of the economic headwinds. Despite alarm bells ringing from ..read more
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The Unintended Consequences of the State-Backed Covid Recovery Schemes
CapitalStackers
by CapitalStackers
2y ago
There is an unwritten law that the larger the scale on which a Government tries to help, the more the Law of Unintended Consequences comes into play. For example – in recent months, we’ve seen the unintended consequences of the Energy Price Cap. The intention, of course, was to keep energy affordable for all. The effect it had was akin to what happens when one puts one’s thumb over a hosepipe. The pressure builds and builds until everyone gets soaked. A similar failure of good intentions was when the Government tried to encourage more people to use their newly-built roads in the 1960s by slash ..read more
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The housing market. Bubble or squeak?
CapitalStackers
by CapitalStackers
2y ago
The eager clamour from experts and economists to forecast the bursting of the UK property “bubble” is becoming ever more shrill. The reasons they give are varied, but largely boil down to: the drop in economic output (which has historically correlated with a property dip); the switching off of stamp duty relief; the end of furlough payments, and; a sharp recent rise in property values. Now, it’s often said (only partly in jest) that economists “predicted nine of the last five recessions” – and the harsh reality of being a pundit is that if you want to get into print, you’ve got more chance o ..read more
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Britain needs competent P2P operators more than ever
CapitalStackers
by CapitalStackers
3y ago
Shouldn’t the FCA proposals to ban promotion of P2P property development lending differentiate between pooled and direct lending? What will happen if they don’t? The FCA has come in for a good deal of criticism recently, and as a result has promised to raise its game – restructuring its organisation, improving training and establishing a “programme of change that transforms the way we handle and prioritise information and intelligence”. The fallout over the Lendy administration – where the owners drifted from being gilt-edged pawnbrokers putting boats in hock, into the world of property develo ..read more
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Change the record, Dr Hindsight
CapitalStackers
by CapitalStackers
3y ago
“The reports of my death are greatly exaggerated,” Mark Twain once remarked when an overexcited journalist transmuted the illness of a friend Twain was visiting into the fanciful poverty-stricken death of the author. Many in the P2P industry will know how he feels after the insolvency specialist Damian Webb reheated some leftovers from his AltFi 2019 “State of the Market” article at a recent NARA (Association of Property and Fixed Charge Receivers) conference. As the man charged with recovering funds from the Lendy wreckage, Webb, a crocodile tear welling up in his eye, pronounced that “P ..read more
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Lancashire ”Silver Village” development raises £960,000 through CapitalStackers
CapitalStackers
by CapitalStackers
3y ago
CapitalStackers investors pledged the best part of £1 million in just a few days to part fund the development costs of 48 apartments for the Over-55s in Thornton Cleveleys, standing to make returns from 10.21% to 14.66% at a Loan to Value of 65.6% on the highest risk layer. The scheme is targeted at downsizers who’d like to be part of a community, and the developers – Torsion Care Ltd – are creating a highly desirable “Silver Village”, with communal lounges, gardens, a twin-bed guest suite and 5-day concierge service. It’s appealingly sited next to a bowling green, playing fields and the Marsh ..read more
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Whose idea was it anyway?
CapitalStackers
by CapitalStackers
3y ago
Who came up with the wheeze for housebuilders to retain freeholds on the sale of a house and charge the new leasehold owner a (seemingly innocuous) ground rent that doubles every ten years? And how did they get away with it? It’s a game that will soon be up when legislation outlaws the practice, following a passionate crusade by the National Leasehold Campaign (NLC). But some beneficiaries of this large and lucrative industry are still unwilling to acknowledge its demise. Just to be clear, the beneficiaries are generally: (1) housebuilders who sell only the leasehold to new homeowners, retaini ..read more
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Two firsts at Kingswood for CapitalStackers
CapitalStackers
by CapitalStackers
3y ago
A highly attractive scheme in Surrey has tempted CapitalStackers to invest outside their normal corridor of expertise in the North – and also to partner with a new senior lender. A luxury apartment project aimed at wealthy downsizers, a prestigious street and an affluent and popular village combined with an experienced, high-quality borrower to convince the CapitalStackers team of the scheme’s worth, and investors clearly agreed as the £950,000 required to fund part of the land purchase was raised in four days. With the borrower tabling equity of £810,000 and a personal guarantee for the whole ..read more
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