Frequently Asked Questions

General

No, TAB is not authorised or regulated by the Financial Conduct Authority or any other regulator. As TAB has built its business model outside of regulation, investors do not have access to the Financial Services Compensation Scheme or Financial Ombudsman Service.

TAB helps facilitate the property market in a number of ways, by providing bridging loan and development finance to borrowers who need access to short term capital, quickly, and also enabling investors to access the UK property market by funding bridging loans or through fractional property investments. As well as operating the investment platform, TAB sources and facilitates investment in property and loans. TAB manages the investments and distributes returns to investors. TAB will administer TAB Lending and TAB Property investments in the best interests of investors collectively and will not take account of my specific circumstances. 

At TAB we know that every borrower is unique. We have the flexibility to consider the broadest range of circumstances and the property market experience to recognize potential where traditional lenders see risk. Typical loans are:

  • Refurbishment property/redevelopment loans for properties of all sizes and complexity
  • Developer exit loans for completed and nearly completed projects in need of extra finance
  • Auction completing loans
  • Commercial bridging loans to expand property portfolios
  • Mortgage bridging loans, when traditional lenders can’t complete quickly enough.

TAB is the trading name of each of the following companies all of which have their registered address at 64 New Cavendish Square, London, W1G 8TB. 

TAB London Limited (Company No.11225821) supervised by the Financial Conduct Authority for anti-money laundering (FRN:918885), TAB London Property Limited (Company No. 11759394), TAB AM Limited (Company No. 12614315), TAB TP Borrower Limited (13055054) and TAB TP Holdco Limited (13051008).

TAB values the views of its customers and we are always pleased to receive feedback and hear your thoughts. If you are not satisfied with any aspect of our service we would like you to contact us so that we can put matters right for you and improve our service for everyone. 

You can contact us via any of the methods in the Contact us section. TAB’s Complaints Officer is Mathura Paramjorthy.

We will attempt to resolve your complaint within 3 business days of receipt or, if we are unable to do so, send a written acknowledgement of your complaint with our Complaints Procedure within 5 business days of receipt. 

We will endeavour to fully investigate your complaint and respond to you within 4 weeks of receipt. If we cannot respond to your complaint within four weeks, we will write to you to explain why we are not yet in a position to address the matters raised and indicate when we will make further contact.

Once we have all the information needed, we will consider the complaint fairly and impartially and provide a written response indicating our final decision.

Please note: we are not members of an Alternative Dispute Resolution Scheme nor do you have the right to take your complaint to the Financial Ombudsman Scheme or any other similar scheme. This does not affect your legal rights.

You can manage your subscriptions to our communications from within your online account here. 

If you do not have a registered account with TAB but are on our mailing list and you would like to remove yourself please contact our investor relations at help@tabhq.com.

No, TAB does not provide investment or tax advice and any general information is provided to help you make your own informed decisions.  If you are unsure of the risks and whether TAB investments are right for you, we recommend that you seek appropriate professional advice tailored to your personal circumstances.

TAB is not authorised or regulated by the Financial Conduct Authority.

TAB offers unregulated bridging loans which are secured against a residential or commercial investment property, development land or land with planning permission.

TAB Lending and Property investments are not regulated products.

TAB has received a lengthy memorandum of legal advice regarding the regulatory status of both TAB Lending and TAB Property investments. TAB’s lawyers have also provided a "to whom it may concern" letter of the synopsis. A copy of the “to whom it may concern” letter is available to investors on request prior to the entering into any Funding Agreement.

As TAB has built its business model outside of regulation, investors do not have access to the Financial Services Compensation Scheme or Financial Ombudsman Service.

You can log in to your account here. In order to log in to your account, you need your email address and password. You will also be sent a single-use code to the mobile number you have registered with us as part of two-factor authentication.

If you are new to TAB you can register for an account here

No, none of the investment products offered on the TAB Market are ISA eligible.

You will be able to see available investment opportunities on the TAB Market. TAB will also distribute term sheets with details of TAB Lending and TAB Property opportunities to investors who have indicated that they would like to receive marketing email communications. You can manage your subscriptions to our communications in the settings area in your profile. You can log in to your account here

The minimum investment in TAB Lending and TAB Property is £1,000. There is no maximum to how much you can invest into TAB investments, however, each investment is dictated by the loan size or property purchase price. As a result, loan sizes vary as do property purchase prices and therefore different available investment amounts.

Invest

If you are an investor there are several different accounts you can open with TAB. 

  • Individual 
  • Joint
  • Corporate
  • Trust
  • SIPP 

You can learn more about the types of accounts here.

TAB Lending: TAB charges the borrower monthly interest their loan i.e. 1%. TAB keeps 25% of the interest (the management fee) to cover the administration of the loan and investors. The balance of 75% is paid to investors according to their investment percentage.

TAB Property: TAB charges the tenant monthly rent on the property. Of the monthly income that is received, TAB keeps 20% as the management fee which covers the administration of and management of the property. The balance is paid to investors according to their investment percentage.

There are no annual fees or charges for opening an account, and you are under no obligation go invest. 

TAB Market can be found here. It is where you can invest in TAB Lending and TAB Property investment opportunities. Upon logging in, the TAB Market is also where you can access investment details.

Anyone over the age of 18 can open an account with TAB. We accept investment from residents in some overseas jurisdictions, however, you must have a UK bank account to send and receive funds. 

If you are not a resident of the UK, before applying, please check that the country you reside in, allows you to invest with TAB and investments of this nature. Please note: We are unable to accept investments from individuals who are resident or citizens of the USA. This includes individuals who also hold US dual citizenship with another country.

You can register for an account here.

You need to complete the following actions before you can start investing. These steps are required for TAB to perform its due diligence and for you to understand the risks associated with TAB investments. 

    1. Register for an account with your name, email address, date of birth and phone number. 
    2. You will then receive an email with a single use link and code and will be asked to confirm your email address. 
    3. Pass our short investment quiz ‘Understanding TAB’.
    4. Confirm you have read the declaration.
    5. Verify your identity. All you need for this is a smartphone and your driving licence or passport. 
    6. Receive identity check completion by email, then select the account you would like to open and provide bank details and account information. (Please allow up to 48 hours for TAB to verify your details and open your account).
    7. You will receive email confirmation with details on how to electronically sign your Funding Agreement.

If you have any questions relating to opening an account, please contact our investor relations team at help@tabhq.com

Unfortunately, you cannot currently update your details directly in your profile. If you would like to update your personal or bank details, please contact our investor relations team at help@tabhq.com.

It is important that you have understood the key risks that are involved with the investment products you have access to. You can learn more about the key risks here.

Two-factor authentication helps keep you safer online by providing an additional layer of security. In addition to verifying your email you will be sent a time-restricted, single-use code sent via text SMS to your mobile.

 

If you fail the ‘Understanding TAB’ quiz, we recommend that you read all the information that is available to you before you take the quiz again.

We are unable to provide you with the answers to the ‘Understanding TAB’ however if you do have any questions, please contact our investor relations team at help@tabhq.com. Please be aware that we are unable to provide any investment or tax advice. You are advised to obtain appropriate tax or investment advice where necessary. 

It is important that you understand the risks that are involved when investing with TAB, you can learn more about the risks here

The ‘Understanding TAB quiz’ is an appropriateness questionnaire made up of five questions, designed to ensure investors understand the key risks associated with TAB’s investment products.

Our anti-money laundering obligations require that we perform anti-money laundering (AML), and know your customers (KYC) checks. 

Anti Money Laundering (AML) 

Anti-money laundering (AML) refers to the laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.

Know Your Customer (KYC)

Know Your Customer (KYC) is the process of identifying and verifying the identity of a customer when opening an account and periodically over time.

 

The Funding Agreement is a legally binding document that investors are required to understand and sign in order to invest on the TAB platform. It sets out the general terms and conditions of investing with us.

The Funding Agreement will be accessible for signing once investor relations has reviewed your profile and opened your account. You will need to sign the Funding Agreement and then your account will be ready for investing. 

You will be able to refer to your Funding Agreement within the documents section of your dashboard once your account has been opened.

In the documents, references to the “Lending Scheme” relate to TAB Lending investments and references to the “Equity Scheme” relate to TAB Property investments.

If you have any questions relating to the Funding Agreement, please contact our investor relations team at help@tabhq.com

After your account has been opened, our investor relations team will send your Funding Agreement, via email, to sign. You need to sign the Funding Agreement and then your account will be ready for investing.

The term sheet sets out the specific details of each investment. Each investment opportunity has different terms and risk profiles to suit your investment goals and requirements. You should review and understand the term sheets with all investment details before making a decision to invest.

The following is for guidance only. We will contact you directly regarding what we need and format.

Savings
Statements from the relevant financial institution and if applicable a statement showing a transfer to your nominated bank account.

Sale of investments
Statements/contract note from the relevant financial institution and bank statement(s) showing receipt of funds and transfer to your nominated bank account.

Property sale
Copy of completion documents and bank statement(s) showing receipt of funds and transfer to your nominated bank account.

Business sale
Contract of sale of business and bank statement(s) showing receipt of funds and transfer to your nominated bank account.

Business proceeds
Accounts for the last financial year and prepared by an independent accountant and bank statement(s) showing receipt of funds and transfer to your nominated bank account.

Inheritance
Will or grant of probate, written confirmation of inheritance signed by solicitor/trustee/executor and bank statement(s) showing receipt of funds/transfer to your nominated bank account.

Lottery/gambling win
Evidence from the lottery provider and bank statement(s) showing receipt of funds/transfer to your nominated bank account.

Divorce settlement
Written confirmation of settlement by solicitor and bank statement(s) showing receipt of funds / transfer to your nominated bank account.

We ask all investors for details on their investment intentions and information on 'source of funds ’ (SoF) as part of our anti-money laundering checks. Sometimes we may request a proof, to show that your investment comes from a legitimate source - be it from your employment, savings, inheritance and so on. We are not being intrusive for the sake of it or collecting the information for marketing purposes.

Understanding the source of our customers' funds is important for a number of reasons:

  • To comply with our legal and regulatory obligations
  • To verify that your transactions were actually completed by you
  • To protect our customers and funds from fraud, of from being linked to illegal activities

Checking SoF is handled by our investor relations and compliance teams. The information we require will vary from customer to customer depending on their circumstances.

If you have failed the TAB account opening process a member of our team will be in contact via email requesting more information. We require you to pass a number of due diligence checks before we can open your account. 

If you have not received an email requesting more information please contact our investor relations team at help@tabhq.com.

  

Onfido is a third-party technology solution TAB uses to securely verify a user's identity. We use Onfido to ensure that our AML, KYC and anti-fraud requirements are processed securely and quickly so that our investors can start their investment journey as soon as possible.

We are required to verify your identity before you can start investing. In order for Onfido to do this you will need to provide: An instant photograph of yourself, like a selfie. Please note, the phone or laptop you use during the Onfido process requires a working camera. Your ID document: a passport, drivers’ licence, identity card or residence permit. Please note, the ID you provide must be photo ID. In order for TAB to process your check as quickly as possible, please ensure you follow the instructions carefully and that photographs of the documents requested are clear, legible and without any glare.

An Onfido ID verification check can take up to 24 hours, however, they are usually no more than ten minutes. Once you have registered for your account, you will need to pass our ‘Understanding TAB’ quiz, and then will be asked to start the Onfido process.

In order for TAB to process your ID checks as quickly as possible, please ensure you follow the instructions carefully and that photographs of the documents requested are clear, legible and without any glare.

If you would like to open a corporate account with TAB, you can do so at the account opening stage of the application. Select the corporate account and follow the instructions regarding the information we require.

Users of the account must be directors or otherwise authorised by the company. A corporate account can have up to two users, if you require more than two users on an account, please contact investor relations at help@tabhq.com. 

We are required to perform due diligence checks on the company, all users and beneficial owners (partner, director, a key shareholder with 25% or more share), before we can open your account. 

If you have listed someone as a user to the TAB corporate account they will receive email communication to invite them to complete a profile and be linked to the account. Both users need to sign the Funding Agreement. 

All other beneficial owners who are not listed as a user will receive a link, via email, to complete our identity verification. Unless you are a user on the account, you do not need to be registered with TAB, however, you are required to undertake our identity verification. 

If you would like more information about corporate accounts, please contact our investor relations team at help@tabhq.com.

A beneficial owner is an individual who ultimately owns or controls 25% or more of a company’s shares or voting rights, or who otherwise exercises control over the company or its management. Where such interest is held through a trust, the trustee(s) or anyone who controls the trust will be registered as the beneficial owner(s).

Different entities have different requirements, we will liaise with you on the information we need.

Where a beneficial owner is another legal person, we will require full details of that entity’s ownership and control structure.

All beneficial owners need to undertake our identity verification which will be sent via email. Beneficial owners do not need to be registered with TAB unless they have been listed as a user. You must notify us if there is a change of beneficial ownership. 

If you would like more information about corporate or other accounts, please contact our investor relations team at help@tabhq.com.

If you would like to add someone to a corporate account please do this at the account opening as they will be required to sign the Funding Agreement and confirm that their account will be opened as a corporate account.

If you would like more information about corporate accounts, please contact our investor relations team help@tabhq.com.

 

Someone from that company has requested to open a corporate account with TAB and you have been listed as a user. At the point of account opening, you will be required to sign the Funding Agreement and confirm that your account will be opened as a corporate account.

You can open an individual account at a later date if you want. If you would like more information about account opening, please contact our investor relations team at help@tabhq.com.

If you would like to add someone to a joint account please do this at the account opening stage of the process. They will need to register for an account with TAB and complete their profile to 100%.

At the point of account opening they will be required to sign the Funding Agreement and confirm that their account will be opened as a joint account. Your nominated bank account must also be in your joint names.

If you would like to open an account where you do not have joint bank account details, or have any other questions about joint accounts, please contact our investor relations team at help@tabhq.com.

It means that someone has invited you to be a user of a TAB joint investment account. In order for us to process the account, you will need to register for an account with TAB and complete your profile to 100%. At the point of account opening, you will be required to sign the Funding Agreement and confirm that your account will be opened as a joint account.

If you would like more information about joint accounts, please contact our investor relations team at help@tabhq.com.

If you have forgotten your password and need to reset it, you can do so here

  1. Enter your email address
  2. Receive a time-limited reset link via email
  3. Choose a new password with a minimum of 8 characters with at least one upper case, one lowercase and one special character. 

If you have not received your reset your password link please check your spam or junk mailbox. 

TAB Lending

TAB Lending is an investment into a short-term loan. The loans are secured against UK commercial and residential property. You have the ability to select the TAB Lending loan that best suits your investment needs. TAB Lending covers bridging loans, land with planning loans and also development loans. You can learn more about TAB Lending and how it works here.

A “bridging loan” is a short-term loan that typically lasts between 3 - 24 months. It is usually taken out in order to bridge the gap between one property transaction and the next.

TAB enters into short-term loans often called 'bridging loans', with third party borrowers. Each loan is secured on property in the UK.

TAB makes loans by raising the capital from investors who make advances to TAB which are then applied towards loans as specified by each investor.

Each investor enters into a Funding Agreement with TAB which sets out the arrangements by which the investor makes advances. Investors then review and choose a TAB Lending investment.

On completion of each loan, TAB enters into a trust deed with each investor. The trust deed declares that it holds a proportion of each loan and security on trust for the investor proportionate to the amount of capital advanced in relation to the total loan amount.

TAB collects interest from the borrowers and then pays each investor interest on the funds applied to each loan. The interest is set at a pre-specified rate and paid monthly. At the end of the term, TAB returns the investor’s proportion of the loan capital when it is repaid to or otherwise recovered by TAB.

Interest is calculated based on the terms that are agreed upon with the borrower. TAB pays 75% of the borrowers' interest to an investor as part of their investor return.

For example, if a borrower’s interest rate is 1.00% (pm), then the investor return will be 0.75% (pm). There are no additional fees or charges, as they are taken before the investor return has been calculated.

TAB understands that lending requirements are different to all borrowers and our aim is to be flexible with our service, meaning we can offer different terms to meet their needs. Consequently, TAB Lending investments also have different terms, allowing you to invest in loans with terms and risk profiles that suit your investment goals and requirements.

Each loan has its own TAB Lending card which provides highlights of each investment on the TAB Market. Full details of the investments are available on the investment details page which is accessible once you have registered for a TAB account.

The investment details page will give you access to a third party valuation report, undertaken by a RICS accredited surveyor, the term sheet, borrower information, financials of the loan and any other information associated with the loan.

The term sheet sets out the amount of the loan, its principal terms including duration, rate of interest, arrangements for repayment and servicing of interest by the borrower, details of the property over which the security is to be created and fees.

You should read these alongside the Funding Agreement which sets out your general terms and conditions.

If you have any questions about a TAB Lending investment and the investment details page please contact our investor relations team at help@tabhq.com.

Legal charges provide the lender with a degree of security in the sense that they are made against the value of the borrower’s property. Should the borrower default on the loan, then those who have a legal charge will have the right to take the monies from the sale of the property.

A first charge loan is a loan on a residential or commercial property. In the case of a first charge, TAB will take precedence and first rights on the property. This means that the property could be sold by way of repossession to recover the value of the loan and any associated costs should default occur.

A second charge loan on a residential or commercial property allows you to borrow money, providing there is enough equity whilst leaving your existing first charge in place. A second charge loan applies if you already have a loan secured against a property that already has an outstanding mortgage. For property improvements such as extensions, you would likely need to take out a second charge bridging loan if you already have a mortgage on the property. The distinction lets the lender know who has priority in the repayment if you can’t pay off the loan by the end of the term.

Each TAB Lending term sheet will tell you whether the loan is a first or second charge loan.

TAB pays interest to its investors from the interest it receives from borrowers. Interest is usually paid into your nominated bank account, on or around the 10th day of each month.

Interest is calculated as follows:

A 12 month loan completes on 20th September. You will receive a full month's worth of interest by the next monthly payment date being 10th October. Assuming the loan redeems as planned, your final interest payment will be 10th September the following year with the capital repayment on the 19th September.

Any interest earned from TAB Lending is treated as investment income by HMRC. UK law requires TAB to deduct income tax at source on interest paid to individuals for loans with a duration of greater than 12 months. This means that TAB will withhold tax, for individuals invested in these loans, at 20% (UK basic rate) on any interest earned and pay this over to HMRC.You will be able to offset this deduction against any tax owed to HMRC through your self assessment tax returns.

Any tax treatment is subject to change and investors are responsible for the payment of any tax due. Please note we are unable to offer tax advice. The above is for information only. You should speak to an independent financial adviser or to HMRC if you are in any doubt about the tax treatment of your TAB investments.

In general a borrower can go into default if they are late at paying interest and/or the capital on redemption. The term sheet will set out the criteria of default for a particular loan. If this happens we will notify you at the first practical opportunity.

If necessary we will instruct solicitors to initiate enforcement of the security (repossession and sale of the secured property). The recovery process could be lengthy and return of any capital investment will be delayed. We do not take the decision to enforce a security lightly and will consider other practical steps that are collectively in the interests of investors. The proceeds of any sale will be net of the costs of recovery which could diminish the return to investors. Property values can fall and may not recover their estimated value and generate sufficient proceeds to repay all or part of the loans to which each security relates. Therefore you may not receive back all of your initial investment. We seek to mitigate these risks through thorough underwriting and a maximum LTV of 75%. However, this risk can not be completely eliminated.

The decision to enforce and the steps taken will depend on the individual circumstances of each loan. In extreme circumstances, we may consider not enforcing the security which would mean loan investors losing all their original investments. We reserve the right to request investors make a contribution towards the costs of enforcement in advance rather than these be offset from proceeds. To date we have never had to do this and would only do so if it were in the best interests of investors and the business.

When a borrower defaults TAB, acting in what it considers to be the best interests of all relevant funders, will investigate the circumstances and determine how best to recover sums due to the borrower. It is possible that TAB will decide that a term extension or other restructuring of the loan is the best option. Enforcing against security is generally a tactic of last resort once it is clear that other steps to recover the funds have failed or cannot succeed.

Near the end of the loan term, borrowers will be contacted regarding the redemption of their loan investment. At this stage, we will set out instructions of loan redemption. Upon redemption of the loan, investors’ capital will be returned to them with any accrued interest.

Please note that some loans can redeem early, on time or on extended terms. Repayment is likely to be delayed if the borrower does not repay (defaults) and we have to enforce the security.

If a borrower repays their loan early we will return your capital and final interest payment to your nominated bank account. We will inform you via email that we are releasing the funds.

You will be able to reinvest your capital into another available opportunity on the TAB Market. If a borrower repays their loan early this will mean you will not receive the expected interest payments for the full term.

In certain circumstances, extensions are granted if requested by the borrower. We assess all applications for extension stringently and ensure they remain within our lending criteria.

There is no minimum term one might be able to extend, however, the maximum loan extension that could be granted is 12 months, and only once, regardless of how long the term.

If a borrower extends, this will delay repayment of any capital, however, you will continue to be entitled to receive interest. We will keep you informed should a borrower request an extension.

No, you cannot currently exit or transfer your investment before the end of the term. TAB investments are illiquid, this means that there is no ability to transfer the benefit to a third party, for example via a secondary market. Once you invest, you are committed for the full period.

TAB will be launching a secondary market TAB Exchange in the future. However, no date has been set and you should not rely on it being available to you during the period of any investments you make today.

Once you have invested, you are committed to for the period of investment. Therefore, you should only invest funds you will not need at short notice.

TAB undertakes industry standard due diligence on any borrower before we lend on any project. Each borrower's solicitor will be required to verify and certify the identity of the borrower, and in the case of corporate borrowers the identity of the borrower's officers and controlling parties. We then check the details of the client and their intention of the loan and use of funds. We will understand what their repayment methods are and expected timeframes to repay. Where possible we also like to meet TAB borrowers personally to understand their needs better and ask detailed questions about their case.

Typically our borrowers are property investors and developers but bridging finance can be used for a number of circumstances to "bridge the gap" between getting long term finance such as a mortgage or achieving a sale. TAB has a highly skilled and experienced sales and underwriting team who deal with brokers and borrowers directly. They guide all our clients through the process and explain each step along the way.

There is a risk that a borrower will not repay some or all of the interest due or capital borrowed and/or may make some payments late. This will have an effect on how much of a return an investor receives and when. TAB will take steps to recover payments due including where appropriate the enforcement of security.

TAB takes security in respect of a loan against real estate. The underwriting process includes an independent estimate of the valuation of that real estate. The 'loan to value' ratio that each loan bears to each such security is stated in the term sheet. In the unlikely event that a borrower doesn’t repay on time, and doesn’t want to extend and we may have to repossess and sell the property. Property values can fall and may not recover their estimated value and generate sufficient proceeds to repay all or part of the loans to which each security relates.

TAB takes security in respect of a loan against real estate and obtains an independent estimate of the valuation of that real estate. This forms the basis of the loan to value or LTV on each term sheet.

The loan to value is a simple measure of risk commonly used in property. It is calculated by dividing the loan value by the property value and is shown as a percentage.

TAB sets a maximum LTV of 75% which means our loan sizes are never more than 75% of the value of the asset.

A higher LTV indicates the loan is riskier, and vice versa. This is because with a higher LTV the amount borrowed is a higher percentage of the property price.

If the property price falls there is less of a gap before the total amount of the loan can no longer be repaid.

Loan to value is important because it is a measure of risk and is stated in the term sheets. However you should not take the LTV in isolation and rely on it solely as a basis for investment.

You can find more information about LTV’s in our blog here.

TAB Property

Assumptions used in the TAB Property financials are: annual property price growth taken as an average for the region across property experts Savills, Knight Frank, JLL and CBRE and annual rental income inflation using a similar process.

While we try our best to predict the future income and capital appreciation, they are not guarantees and are subject to change at any time. 

TAB Property is a fractional property investment product. You can invest and own a share of a property. During the term, you will receive a share of net rental income and at the end of the investment a share of any capital growth at the end of the investment.

TAB sources properties through a network of agents and property finders. We specifically look for properties that produce long term sustainable income. Thorough due diligence is carried out in respect of the deal structure, legal matters and investment analysis with internal review processes and Board sign-off prior to acquisition.

Each property has its own TAB Property card which provides highlights of each investment on the TAB Market. Full details of the investments are available on the investment details page which is accessible once you have registered for a TAB account.

No. The investment is a trust structure. You lend money to TAB who then directs those funds to purchase the chosen property. The SPV who owns the property is the trustee. Each investor has a beneficial interest. Investors will receive a fixed income calculated each year and share of any capital appreciation should the property value increase over the term. If the property value falls, then investors may not get back all of their initial investment.

TAB does not currently offer a secondary market or other facility which allows you to transfer or exit your investment early. Once you invest, you are committed for the full period. TAB will be launching a secondary market TAB Exchange in the future. However, no date has been set and you should not rely on it being available to you during the period of any investments you make today.

At the end of the term the property will be sold or refinanced enabling you to exit from your investment. We will contact you to inform you of your options. If you exit at the end of the term, you will receive a share of the proceeds if the property value has sufficiently appreciated. If the value does not appreciate as expected, you may not receive back all of your initial investment.

Borrow

This depends on the type of loan you are wanting to take out but typically our minimum is £100,000 and maximum is £10m.

The interest rate can be determined by many factors.

  • The asset class and value of the property that's being used to secure the loan.
  • The loan to value (LTV).
  • Whether you have additional loans secured against the property that take priority.
  • What the purpose of the loan is, including purchase, refinance or developer exit. 
  • Your credit history.

A “bridging loan” is a short-term loan that typically lasts between 3 - 24 months. It is usually taken out in order to bridge the gap between one property transaction and the next.

Legal charges provide the lender with a degree of security in the sense that they are made against the value of the borrower’s property. Should the borrower default on the loan, then those who have a legal charge will have the right to take the monies from the sale of the property.

A first charge loan is a loan on a residential or commercial property. In the case of a first charge, TAB will take precedence and first rights on the property. This means that the property could be sold by way of repossession to recover the value of the loan and any associated costs should default occur.

A second charge loan on a residential or commercial property allows you to borrow money, providing there is enough equity whilst leaving your existing first charge in place. A second charge loan applies if you already have a loan secured against a property that already has an outstanding mortgage. For property improvements such as extensions, you would likely need to take out a second charge bridging loan if you already have a mortgage on the property. The distinction lets the lender know who has priority in the repayment if you can’t pay off the loan by the end of the term.

Each TAB Lending term sheet will tell you whether the loan is a first or second charge loan.

TAB undertakes industry standard due diligence on any borrower before we lend on any project. Each borrower's solicitor will be required to verify and certify the identity of the borrower, and in the case of corporate borrowers the identity of the borrower's officers and controlling parties. We then check the details of the client and their intention of the loan and use of funds. We will understand what their repayment methods are and expected timeframes to repay. Where possible we also like to meet TAB borrowers personally to understand their needs better and ask detailed questions about their case.

Typically our borrowers are property investors and developers but bridging finance can be used for a number of circumstances to "bridge the gap" between getting long term finance such as a mortgage or achieving a sale. TAB has a highly skilled and experienced sales and underwriting team who deal with brokers and borrowers directly. They guide all our clients through the process and explain each step along the way.

There is a risk that a borrower will not repay some or all of the interest due or capital borrowed and/or may make some payments late. This will have an effect on how much of a return an investor receives and when. TAB will take steps to recover payments due including where appropriate the enforcement of security.

TAB takes security in respect of a loan against real estate. The underwriting process includes an independent estimate of the valuation of that real estate. The 'loan to value' ratio that each loan bears to each such security is stated in the term sheet. In the unlikely event that a borrower doesn’t repay on time, and doesn’t want to extend and we may have to repossess and sell the property. Property values can fall and may not recover their estimated value and generate sufficient proceeds to repay all or part of the loans to which each security relates.

Due to the short term nature of a bridging loan, the sum of money borrowed is due for repayment according to the terms that are agreed upon before the loan is completed. Interest is charged on bridging loans which is calculated on a monthly basis. Interest can be paid in one of two ways. Either monthly (serviced) or retained (unserviced). Retained means the total cost of the interest will be rolled up and added to the initial lump sum borrowed and due for repayment at the end of the loan term.

There are many circumstances that may require bridging finance.

  • When you wish to invest in the purchase of a property as a cash buyer and do not have the time to wait for a typical buy-to-let or commercial mortgage (typically applied to auction purchases).
  • When an existing chain becomes broken, possibly due to a buyer dropping out which puts the purchase of your new home at risk.
  • When you intend to use the finance to build a property of development, which will then be sold upon completion.
  • When you require a cash injection to supplement potential cash flow issues or investment into your business
  • When planning to use additional finance to sell a property after renovation.

What are the overall costs: Associated costs such as; arrangement fees and exit fees will have an impact on the overall costs of the loan, along with the duration of your loan. The longer term you agree the more it will cost in interest.

Is the exit strategy realistic: Is the agreed term sufficient in order to redeem the loan? For example, if redemption comes by way of sale, is the term length long enough to achieve the required amount on the open market. If it is not, being forced into a faster, cheaper sale allows you to repay the loan in its entirety?

TAB takes security over real estate for each loan. TAB requires personal and sometimes corporate guarantees for loans to corporate borrowers. Details of a particular security will be set out in each loan's term sheet. TAB adopts industry practice standards towards the taking of each security, through the engagement of appropriately qualified and experienced solicitors. It is the responsibility of the solicitor TAB instructs to undertake appropriate real estate and other due diligence so as to ensure that the loan security is capable of enforcement, free from any unknown competing charges and interests.

A first charge loan is a loan on a residential or commercial property. In the case of a first charge, TAB will take precedence and first rights on the property. This means that the property could be sold by way of repossession to recover the value of the loan and any associated costs should default occur.

A second charge loan on a residential or commercial property allows you to borrow money, providing there is enough equity whilst leaving your existing first charge in place. A second charge loan applies if you already have a loan secured against a property that already has an outstanding mortgage. For property improvements such as extensions, you would likely need to take out a second charge bridging loan if you already have a mortgage on the property. The distinction lets the lender know who has priority in the repayment if you can’t pay off the loan by the end of the term.

Property development finance is a short term loan for residential or commercial property developments, such as ground up construction projects or refurbishment projects, typically based on the future value of the development when completed (GDV).

A land bridging loan is a type of short term finance used to purchase or even refinance land that has planning permission to build or develop residential or commercial properties.

You can get in touch with the sales team at nr@tabhq.com.

You can get in touch with the sales team nr@tabhq.com.

Risks

As with any investments, there is a balance of risk versus reward. TAB currently has two products available for investment. TAB Lending and TAB Property, both have their own risks and own rewards. TAB Lending we lend money to individuals or businesses in the form of a loan, the interest they pay makes up the investor return. TAB Property, you invest in a tangible property which is rented out, the rental income received makes up the investor return. With TAB Lending there are risks that the borrower might not repay the loan, and with TAB Property there are risks that the tenant might not pay their rent and property values may not appreciate over the term as projected.

You can read about the key risks here

Please note that TAB does not provide tax or investment advice and any general information is provided to help you make your own informed decisions.  Investors are advised to obtain appropriate tax or investment advice tailored to their individual circumstances where necessary.

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