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LANDBAY

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A Buy To Let Mortgage Platform

108%
 - 
Funded 15 Dec 2020
£4,713,266 target
£5,131,508 from 335 investors
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Business overview

Location London, United Kingdom
Social media
Website landbay.co.uk
Sectors Finance & Payments Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 08668507
Incorporation date 29 Aug 2013
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Investment summary

Type Equity
Valuation (pre-money) £50.3M
Equity offered 9.24%
Tax relief

EIS

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Business highlights

  • Landbay has funded in excess of £600m BTL mortgages
  • Diverse instutional funding base on the platform
  • Won multiple industry awards and rated "excellent" on Trust Pilot
  • Over six years of operating in the market
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Key features

  • Secondary Market
  • Nominee investment min. £11.25 +

Idea

Introduction

Landbay is a Buy-to Mortgage lending platform. We direct-match institutional investors’ money into BTL mortgages.

We launched in Spring 2014 as a peer to peer platform. In June 2017 we started deploying institutional capital and in December 2019 we closed down the retail p2p platform to concentrate on institutional investors.

We provide investors access to a flow of whole-loan high quality BTL mortgages that can be securitised or held on balance sheet. Landbay does not deploy any of its own balance sheet nor take any credit-risk.

We have completed over £600m of mortgages to date.

We now have the mortgage funding, technology and capacity to grow significantly in this £250bn market.

Substantial accomplishments to date

We have built a broad funding base with Retail Banks, Investment Banks and Asset Managers. This means that our loans can get funded via securitisation capital markets or via bank deposits.

We have grown our origination capacity significantly over the last few years - we are now whole of market with most of the major broker networks & clubs partnering with us. We have an experienced Sales Team that covers all of England & Wales that we have hired from leading BTL lenders.

We have won multiple awards including Best BTL Lender for the last 2 years running at the Mortgage Introducer Awards. We have been named in the Deloitte Technology Fast 50 for the last 2 years and are in Technation's Future Fifty 2020.

We have a TrustPilot Score of Excellent (4.5).

We have 3,600 active brokers on our platform - an increase of 50% since beginning of 2020.

Monetisation strategy

Landbay charges borrowers a fee at the time of funds being drawn down, typically 1.5-1.75% of the loan amount.

In addition Investors in the loans pay an origination fee and ongoing servicing & performance fees.

As our AUM grows, we will build significant annuity income in the business (as the platform fee we receive layers up month-on-month). We see this as a key benefit of operating in the mortgage market where loan terms are longer than most other forms of loans.

We do not take any direct credit or pricing risk.

Use of proceeds

We intend to use the proceeds of this funding round for general working capital purposes as we continue to grow the business. Our expenses are anticipated to break down as follows (approx):

• Technology - 50%.
• Marketing & Brand Development - 25%.
• General Operating Expenses - 25%.

Key Information

Reflected funds

Landbay has raised £4.7m in new equity funding over the past 12 months, at a price per share of £2.25 - which this round represents. A small portion of this investment is to be received by the company in future tranches, with £250k remaining to be received in December 2020, and a further £250k remaining to be received in January 2021.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited (trading as Republic Europe) ("Republic Europe"), which is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Republic Europe platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Republic Europe platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £50,278,950

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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