The Burrow is currently looking for loanstock from individuals or organisations wanting to support the co-op and make a safe investment.
Loanstock is money loaned to a Co-op that is borrowed over a fixed term. Investors can invest any amount over any fixed period. Investors do not have any control over decision making processes.
The amount of loanstock we are seeking will be dependent on the final purchase price of the property we end up buying. Some of the co-op members will be investing in loanstock from their own savings.
We are interested in investments of a minimum of £500 for 3 years or longer, at between 0% and 4% interest. The length of the term and the interest paid is open for negotiation but in general higher interest will be paid on longer term loans.
Loanstock is unsecured. However if we were in such financial difficulty that we were unable to keep up with repayments we would sell the house. In this very unlikely situation excess funds from paying off the mortgage would be used to pay back loanstock. In practise, housing co-ops very rarely go bust and there is great precedent of loanstock being a very safe and desirable investment. Much of the loanstock is likely to come from the co-op members.
We will be issuing for loanstock once we are ready to make an offer on a house, but please contact us before then if you want to know more about investing in us. We can come to a preliminary agreement and then contact you once we are ready to finalise things.
