Apply for Loanstock

 

In our first issue of Loanstock, we are aiming to raise £250,000 toward the cost of purchasing land and starting the construction process. Loanstock allows any individual or organisation to invest money in a co-op at a set rate of interest and for a set amount of time, usually between 3 and 20 years. Because we can negotiate the conditions of the loan, both parties benefit transparently and tangibly from investment. The loan and interest will be repaid through money raised from monthly rental payments on our new homes.

 

We encourage our supporters to consider making a 0% interest loan. Even modest savings made this way will make a positive impact. Below is a summary of our competitive offerings for loan rates and duration, subject to negotiation.

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We can repay Loanstock in whichever way suits you best:

1. Annual Interest Payments: On each anniversary of the issue closing date, we will make interest payments to lenders at the agreed rate until the agreed period ends and the loan is repaid--either in full or in agreed instalments.

 

1. Lump Sum Payment with Interest: On each anniversary of the issue closing date, interest of an agreed rate will accrue on the loan until the agreed period ends and the loan is repaid--either in full or in agreed instalments.

 

Loanstock purchases can be made through an Independent Financial Adviser or direct from us. Certificates will be given to lenders as a receipt for an agreed sum on the closing date of the issue. Each Loanstock certificate is a legal document which guarantees the conditions of the loan, including the duration of the loan and the interest rate to be paid. As with all loans, lenders are liable to pay tax on interest. We may be required by HMRC to provide them with a list of all investors receiving more than £250 interest in any one year.

 

Money invested in Loanstock cannot be withdrawn prior to the end of the agreed period except by agreement of Tortoiseshell Housing Co-operative’s directors. However, if a lender wants their Loanstock to be repaid before the agreed period is over, we will try to accommodate this where it is financially feasible. While Loanstock is unsecured against its full value, it remains partially secured against the value of any property the co-op has bought or built. In the event of financial failure, all assets of the co-op will be used to settle outstanding debt in this way.

Click below to open our online pledge form

Loanstock pledge form

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If you don’t want to apply for Loanstock or would also like to donate, you can make a donation directly toward our project. Money raised will help go towards helping our project to create a sustainable, eco friendly and affordable future for housing.

 

You can donate through paypal who take a percentage or make a payment into our bank.

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Bank Account Details:

Tortoiseshell Housing Cooperative Ltd

Acc No. 20896077

S/C 16-58-10

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To donate through paypal click here

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