Montello Income Fund
Asset Class
The Montello Income Fund lends directly to end borrowers in the UK real estate bridging finance market, with a focus on London residential property
Investor Return
Returns 8.5% per annum, paid quarterly
Asset Backed
The Fund holds a first legal charge against each property that it lends against. The Fund can only lend on a first charge basis, and has a very conservative LTV portfolio average (usually between 50-60%)
Redemptions
Redemptions available quarterly (after 5 months invested)
The Montello Income Fund provides a higher return from a more conservative investment compared with other UK bridging finance funds.
The Montello Income Fund is a better investment because it;
- Can only lend on a 1st charge basis. - There are no risky loans such as development loans, 2nd charge or mezzanine loans allowed by the Fund.
- Lends direct to end borrowers only, - not to other bridging finance companies. - There is direct control over every loan that the Fund invests in, and all loans are for the direct benefit of the investors in the Fund.
- Is focused on lending primarily against London residential property. - The assets of the Fund are generally against prime real estate assets, not loans against more risky security such as loans against property in Scotland, Wales nor Northern Ireland.
- Can lend to a maximum Loan to Valuation of 75% of the 'current market value' - Other funds talk about 'average' LTVs etc. This actually means that some other funds may do some loans at 100% LTVs or more, if there are others at lower LTVs, providing a far riskier loan portfolio. the average LTV for the Montello Income Fund is usually between 50-60%
- Lends on a short-term basis only. - The average loan is for between 3 and 6 months. this means that there is liquidity in the underlying asset class of the Fund, unlike many other bridging funds which seek to provide a liquid investment with longer term underlying loans.
- The Montello Fund holds a minimum of 10% in cash at all times
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