Frequently asked questions
- Who can lend to Reap?
- What income will I receive?
- How secure is my money?
- Can I leave Reap early?
- Am I able to choose where my money is applied?
- Can I place my Real Estate Annuity Plan in trust?
- Is my health or age taken into account?
- Can I donate a portion of my Reap income to charity?
- Can I enter into more than one Reap arrangement?
- Who is Equfund (IPS) Ltd?
Who can lend to Reap?
Anyone who is attracted to a fixed income and has a minimum of £15,000 available is eligible to set up a Reap account with us, subject to terms and conditions and anti-money laundering checks.
What income will I receive?
You will receive a gross fixed income of 3% per annum on the balance of your Reap loan account paid monthly in arrears; this is fixed for the initial five year period.
How secure is my money?
A Security Trustee will register a first charge against an individual residential property on your behalf as security for all monies advanced by you under the loan. Your capital is protected in that there is a maximum loan percentage of 85% of a property’s value. Each let property is professionally managed by Equfund, with a rent guarantee policy or a tenancy guarantor supporting each tenancy, plus all renovation works that are undertaken on a property are fully warranted. In the event that your loan is used to fund the acquisition of a property, your money will be held on trust in a segregated client monies account at Barclays Bank. This is a separate bank account that is ring-fenced from the monies of Equfund. Funds are secured by a Cash Charge registered at Companies House. Interest will be payable at 3% per annum on monies held. Once your funds have been allocated against a property and the purchase is completed your loan will be secured by way of Legal Charge at HM Land Registry.
Can I leave Reap early?
Though the Reap contract is for a minimum of five years, providing all parties with the certainty of a fixed contract, there is an allowance in the contract for your Reap to be transferred by you, with our consent.
Am I able to choose where my money is applied?
Yes, we can advise which properties are currently available to be lent against; if you are able to visit whilst the property is vacant, we will even personally show you around your selected properties to assist with your choice.
Can I place my Real Estate Annuity Plan in trust?
We understand that wealth succession is a topic of high importance. Reap is designed to be placed in trust and we can direct you to specialist barrister or law firms who will establish the trust to your requirements; e.g. you might wish to receive the income and leave the capital to your beneficiaries on your passing.
Is my health or age taken into account?
No, everybody can receive the same 3% rate. Other than your contact and payment details and our requirement to comply with anti-money laundering regulations, we respect your privacy and have no requirement to know anything about you or your health.
Can I donate a portion of my Reap income to charity?
What a lovely gesture! We can even recommend a charity which is close to our hearts: a homelessness organisation called The Homesavers Charity (registered charity number: 1149191.)
Can I enter into more than one Reap arrangement?
Yes, of course.
Who is Equfund (IPS) Ltd?
Equfund was established in June 1997, it’s core business is to bring empty properties back into habitable use in order to provide affordable rental homes for people in housing need; as there are currently over 635,000 long-term empty properties in the UK, and a similar number of people on the housing waiting list, this is an ongoing challenge. For the last 15 years we have been sourcing, acquiring and refurbishing empty properties up to Decent Homes Standard; our purchase criteria is that a property must be structurally sound, in need of minor upgrading works, and located within well-established neighbourhoods.