Glossary

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

A borrower is defined as someone who is looking to, or who has borrowed money from TAB in the form of a bridging loan or development finance. 

A bridging loan is a short-term loan where borrowers need to bridge the gap between the gap in finances until long term financial solutions can be found.

A broker/intermediary is someone who acts as a middleman and arranges transactions between borrowers and TAB. A broker often receives a fee from the introduction of the two parties. 

LTV is the ratio of how much a borrower has requested for a loan against the asset being used as the security, which can be property or land. Day one LTV is the ration loan against the value of the asset at the very beginning of the project. LTV can change as the project progresses. For example, on day one, if a security being used is just land and as the project progresses gains planning permission, then the value of the land might increase, therefore LTV would change

When undertaking a development, a developer will have to pay the principal contractor at preset agreed dates, usually monthly. These funds can then be approved by the funder and advanced to the developer to ensure they have funds to pay for the next set of works on site. This process of claiming funds spent on site is called a drawdown. The the borrower is drawing down on funds pre-agreed with the lender.

A 3 year estimation that is calculated by taking an average of property price projections for the region across property experts Savills, Knight Frank, JLL and CBRE.

How the borrower intends to repay the loan.

Investors can view a breakdown of financial information for each investment under the financials section of the investment details page.

The rate of monthly income payments, net of any fees, that is passed onto the investor from the rent received from TAB Property. This figure is revised annu

GDV is the expected market value, all circumstances being normal and once works have been completed, of what the property development should be worth on the open market.

The total interest rate charged to the borrower for taking out the loan.

Intermediary/broker is someone who acts as a middleman and arranges transactions between borrowers and TAB. An intermediary often receives a fee from the introduction of the two parties. 

TAB Lending details is a specific loan investment details page. Investors can access the investment details page once logged in. Full details of the investment are provided, including financials, term sheets and valuation reports. 

TAB Property details is a specific property investment details page. Investors can access the investment details page once logged in. Full details of the investment are provided, including financials, term sheets and valuation reports.

An investor is defined as anyone who commits capital to a TAB investment or is intending to with the expectation of a financial return.

The amount of interest earned on an investment, net of any fees.

The estimated income and overall return on investment. Investor return for TAB Property is the fixed income added to the estimated capital growth.

A portion of the money that is held back for the upkeep and maintenance of the property. The kitty covers initial expenses and not for income payments.

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

The cost of legal support that is associated with the purchase of a property.

A lender is used to describe the company that lends money. In this example, TAB is considered a lender. 

The act of giving money to someone in the form of a loan and is paid back, usually with interest, after a period of time. 

The size of the loan the borrower has requested and promises to repay, as outlined in the loan terms.

LTC is the ratio used to compare the financing of a project (development loan) against the cost of the development, refurbishment, or build of the property.

The LTGDV is the ratio between the amount of money we lend against a property development project and the expected market value, all circumstances being normal and once works have been completed, of what the property development should be worth on the open market.

Where the asset is located. For TAB Lending there may be more than one property that is used as security, all locations for each asset will be listed. 

Loan to value (LTV) is the ratio of debt to assets value, expressed as a percentage.

The fee TAB charge for the management of the loan or property.

How many months of gross rate of interest that has been deducted from the loan amount at the beginning of the loan.

The platform is the terminology used when you log into the TAB website. This is where you can update your profile, view your dashboard, transact, and invest in products.

Details of an investor’s portfolio of TAB products for a particular account.

The value of the TAB Property asset. This has been valued by a third party valuer. This is the cost of the property before any fees or additional costs have been added.

Redemption is the act of the repayment of a loan from the borrower. Once a borrower has repaid all of the loan and interest then the loan is considered fully redeemed.

The percentage amount of interest or income an investors particular account has earned on their investments since opening their account.

Often interest is served on a monthly basis or in some bridging loans, deducted from the gross loan in advance. These methods can be draining on cashflow which is imperative when undertaking developments. Funders understand and appreciate this, and therefore offer a part of the overall loan that is reserved for interest. The expected interest on the loan is estimated ahead of time, and then deducted from the total loan available but only paid at the time of the redemption.

The order of priority a lender has for repayment of their loan if the borrower defaults.

When a lender deducts interest at the beginning of the loan term.

The cost of Stamp Duty Land Tax (SDLT) that you are required to pay if you purchase a property or land over a certain price in England.

A PDF download of an investor’s particular account monthly statements.

TAB Lending is is a loan investment product offered on the TAB Market.

Where investors can view investment opportunities for both TAB Lending and TAB Property.

TAB Property is a fractional property investment product offered on the TAB Market.

The conditions under which land or property is held or occupied. Typically it can be freehold, leasehold, or leasehold with a share of the freehold.

The amount of time the borrower has requested to take out the loan.

The monetary amount of live investments an investor’s particular account has invested in.

The monetary amount of interest or income an investors particular account has earned on their investments since opening their account.

The total cost required to purchase the TAB Property. This included legal fees, valuation fees, Stamp Duty, the kitty cost and any other costs associated with the property purchase.

Underwriting is the due diligence process undertaken by TAB to determine the risk profile of borrowers and intermediaries.

What the loan will be used for.

The value of the asset that is being used as security.

The cost of a third party surveyor valuing the property.

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