Crowdfunding landlords in retirement

by Michelle McGagh, Pensioners thinking of using their freed pension cash to get into buy-to-let may have to turn to crowdfunding to fulfil their plans.

New peer-to-peer lender Landbay is offering finance to those who want to purchase a buy-to-let property but who are frustrated by age restrictions on mortgages.

Crowdfunding works by pooling money from investors to fund certain projects, in this case the purchase of a property, with the peer-to-peer platform essentially marrying up those who want to lend with those who want to borrow.

Landbay aims to provide alternative finance to those who may not qualify for, or are not in the target market for, traditional lenders.

Landbay chief executive John Goodall said banks and building societies had become stricter over who they would advance buy-to-let loans to and had clamped down on lending to professional landlords and first-time landlords.

‘Banks are not lending to professional landlords or first-time landlords…Banks want to lend to people earning £300,000 a year who want to buy a holiday home to rent out,’ he said.

Real Estate CrowdFunding: why it’s a big deal
The tougher lending conditions mean pensioners using the relaxation of pension drawdown rules to access their entire pension pot with the hopes of investing in property may find it harder than they expected.

Goodall said many pensioners will also be too old to secure a loan from a traditional lender and most will only offer mortgages where the terms runs past age 70. This is in contrast to Landbay where loan terms are five years and can be taken until age 80.

‘Most banks will not lend beyond age 70 but the first landlord we loaned to was 71 and we will lend to a maximum age of 80,’ said Goodall.

‘There is lots of talk at the moment about the change in annuities meaning that everyone becomes a landlord but I don’t think it will have as much of an impact as people think, but we are an interesting provider from that point of view.

‘We will tap the market for people realising money from their pension…but we are not saying everyone should rush out and become a landlord.’

The deal for borrowers

Borrowing money from Landbay will be comparable in rates to mainstream buy-to-let mortgages but the terms are far shorter, meaning borrowers will have to refinance every few years on the property they find.


Tags: , , ,


U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

Global Crowdfunding Market 2017-2021PR Newswire (press release)Global Crowdfunding Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The rep [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

ForbesMoney Makes Small Businesses Go Round: Ensuring Access For AllForbesIn 2008, a new form of financing — rewards-based crowdfunding — premiered. With money raised on crowdfunding platforms like Indiegogo and Kickstarter, startups and companies with a new product idea connect direc [...]

CNETKickstarter alternatives: Choosing a crowdfunding platform - CNETCNETCNET@Work: Before launching a crowdfunding campaign, it's worth exploring the differences between Kickstarter and its competitors.and more » [...]

Baltimore Business JournalCrowdfunding initiative for women-owned startups comes to MarylandBaltimore Business JournaliFundWomen, a crowdfunding platform dedicated to helping women-led businesses find support, is launching in Maryland in partnership with the incubator Betamore, PNC Ba [...]

SiliconBeatPayPal, crowdfunding sites cut off white supremacists, hate groupsSiliconBeatPayPal and some crowdfunding sites have joined other tech companies in cutting off hate groups after the deadly white supremacist rally in Charlottesville, Virginia, over the weekend. The Southern [...]

Indiana pioneers crowdfunding community projectsWTHRA downtown Greensburg mural made possible by community donations,, the Indiana Housing and Community Development Authority and other local organizations, as seen on Aug. 3, 2017. (Main Street Greensburg Photo via ... [...]

Hybrid agent turns to crowdfunding to raise up to £250000Property Industry EyeIts 'front page' pitch says Vesper Homes is looking for investment of £100,000 in exchange for 8% of equity in the company. However, in the longer pitch document it says it is seeking £250,000, wit [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |