Property Investment FAQs
What investment structures do you offer?
- Joint Ventures (shared ownership and profit participation)
- 100% Ownership (you own the property outright)
- Fixed-Return Capital (you act as a lender, not an owner)
What is BRRRR?
BRRRR stands for Buy, Refurbish, Rent, Refinance, Repeat.
It is a strategy focused on improving a property, stabilising rental income, refinancing to release capital, and reinvesting that capital into future projects.
What is an HMO?
An HMO (House in Multiple Occupation) is a property rented to multiple unrelated tenants who share facilities.
HMOs typically generate higher rental income than single-let properties but require licensing and regulatory compliance.
What is an SPV?
An SPV (Special Purpose Vehicle) is a UK limited company created to own a specific property or project.
SPVs are commonly used for joint ventures and professional property investments as they provide clear ownership and governance.
What is a Joint Venture (JV)?
A Joint Venture is a partnership where:
The investor provides capital
LNDN Base manages sourcing, finance, refurbishment, letting, and exit
The property is usually owned via a UK SPV
Profits and equity are split under a pre-agreed agreement
In Joint Ventures, LNDN Base signs the lender’s Personal Guarantee.
The investor does not.
How is the property owned?
Joint Venture: via a UK SPV
100% ownership: personally or via your own SPV
Fixed-return: no ownership
What does LTV mean?
LTV (Loan-to-Value) is the percentage of a property’s value funded by a loan.
For example, if a property is worth £400,000 and the loan is £280,000, the LTV is 70%.
What is a bridging loan?
A bridging loan is short-term finance used to purchase or refurbish a property before it is refinanced onto a long-term mortgage or sold.
It is commonly used when a property needs work or does not yet qualify for a standard mortgage.
How much does a bridging loan usually finance?
Bridging lenders typically finance around 65–70% of the property value.
The remaining 30–35%, plus purchase costs, is funded by investor equity.
Bridging loans usually do not cover stamp duty, legal fees, or refurbishment costs unless specifically agreed.
When is a bridging loan used?
Bridging finance is used when:
Speed of purchase is important
The property is unmortgageable in its current condition
Refurbishment is required before refinancing
It allows value to be created before moving to lower-cost, long-term finance.
What is the difference between auction, off-market, and open-market purchases?
Auction
The fastest purchase route. Properties are often sold below open-market value. A 10% deposit is paid on auction day, and completion usually takes place within 28 days. Best suited to investors who can move quickly and have funding ready.
Off Market
A private sale not publicly advertised, offering reduced competition and flexible terms. Completion typically takes 4–6 weeks, depending on legal and funding requirements.
Open Market
A property listed with an estate agent. This is the most common route but usually involves more competition and longer timelines, with completion typically 6–8 weeks.
What are typical purchase timelines?
Auction: 28 days
Off-market: 4–6 weeks
Open market: 6–8 weeks
Refinance or exit: typically, 6–12 months
What are the responsibilities in a Joint Venture?
The investor provides capital, signs legal documents, approves major strategic decisions, and remains hands-off.
LNDN Base manages sourcing, finance, refurbishment, letting, exit, reporting, and signs the lender’s Personal Guarantee.
When do I need to start funding the investment?
You only start funding after a specific property has been agreed and approved.
There is no capital commitment before a deal is secured.
Typical funding timeline:
Week 0 – Deal agreed:
Property approved, budget and structure finalized, legal process begins.
No funds required at this stage.
Week 1–3 (off-market / open-market) or immediately (auction):
10% deposit paid
Auction: paid on auction day
Off-market / open-market: paid at exchange of contracts
Week 3–6 (off-market / open-market) or around Week 4 (auction):
Completion
Bridging lender releases the loan (typically up to 70% LTV)
Investor funds remaining equity, stamp duty (if applicable), legal fees, and lender fees
Legal ownership transfers
Months 1–6 after completion:
Refurbishment funding is released in stages as works progress.
How are refurbishment costs paid?
Refurbishment costs are:
Agreed upfront in a budget
Released in stages, not all at once
Paid as works progress and invoices are approved
What does my cashflow timeline look like?
Property investment is not immediate income.
Typically:
Months 0–6: Purchase and refurbishment (no income)
Months 4–8: Property let, rental income begins
Months 6–12+: Refinance or sale
At refinance or sale, investor capital is returned first.
How is my investment capital protected in the payment order?
All payments follow a clearly defined priority of payments, standard in UK property joint ventures:
1st priority – Senior lender: repaid first under a First Legal Charge
2nd priority – Investor capital: returned in full before any profit is distributed
Final – Profit distribution: any remaining surplus is treated as profit
The same order applies on refinance or sale.
What is a capital priority contract?
A capital priority contract defines who is repaid first in an investment and ensures investor capital is returned before any profit is shared.
It is documented in solicitor-drafted agreements such as:
Joint Venture Agreement
Shareholders’ Agreement
Shareholder Loan Agreement (if applicable)
Deed of Priority
Are returns guaranteed?
Risk is managed through asset-backed investments, conservative underwriting, and clear legal structures.
Can I invest if I live outside the UK?
Yes. Overseas investors can invest personally or via a UK SPV.
We assist with SPV setup, banking introductions, legal compliance, and full execution.
What documents do I sign when I decide to invest?
Joint Venture investor:
Heads of Terms → JV Agreement → Shareholders’ Agreement → Share Subscription/Purchase → Risk Acknowledgement100% owner:
Purchase contract → Finance documents (if applicable)Fixed-return investor:
Heads of Terms → Loan Agreement → Risk Acknowledgement
How do I get started?
Start with an introductory call, align on strategy, review a deal, complete legal documentation, deploy capital, and receive ongoing execution and reporting.