Montello | Income Fund
68 Lombard Street, London EC3V 9LJ. Phone 0800 130 3388,Contact us online Here »
Montello Bridging Finance
About the 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
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
Quarterly (after 5 months invested).
SIPPs and Platforms
The Fund is available through various providers including:
Latest news
- Bridge Financing Specialist Montello Gains Goldman Sachs Director
London based real estate bridging financier Montello Bridging Finance has appointed former Goldman Sachs Managing Director, Richard O’Toole, to its board of directors. O’Toole, who is is currently a non-executive Director of Goldman Sachs Bank Europe plc, brings with him many years of experience in the areas of regulation, international trade and financial services... [May '10]
- Montello raises GBP20m for real estate bridging finance transactions
London-based real estate bridging finance specialist Montello Private Finance has raised over GBP20m for its real estate bridging finance... [Sep '10]
- Like a bridge over troubled waters
Banks rein in lending, prompting a rise in bridging loans, an industry that comprises flexible firms and which also offer investors the chance to exploit the market and generate income... [Nov '10]
- Bridging finance plugs the gaps left by the banks
Christian Faes, managing director of Montello, said 'We are plugging the gap that banks are not filling at the moment'... [Nov '10]
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 offering because it:
- Can only lend on a 1st charge basis
There are no risky loans such as 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, and 'target averages' 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