Homebuyer Registration | Crowdtolive®by Bayuti

Getting started

The Basics

You will need a minimum investment equal to 10% of the Property Purchase Cost.

We don’t have a minimum household income as such, however, the rental of your property should not exceed 40% of your annual income.

We’ll need to know:

How much money you have for a deposit (minimum £20,000)
Sole or Joint Application
Your annual and household income
Your credit report (We require an Experian credit report)
If you’ve been declared bankrupt or defaulted payments

We may also ask you for some additional information depending on your personal circumstances. It is important to note that when calculating your annual salary and household income, we do not include any government benefits received.

We conduct due diligence on each Investor looking to invest in the property with you. The Investor will have to pass our Compliance checks and our knowledge test before investing.

As an FCA regulated business we are required to carry out the necessary due diligence checks and understand the investor’s risk appetite, to ensure the investor meets the FCA investment criteria. If the investor does not pass these checks, or if we have any concerns, we are within our right to refuse to do business with the party in question.

We comply with Anti-Money Laundering regulations and ensure our due diligence checks are robust to mitigate any risk.

No. Mortgages are debt based financial products, which is usually reflected on your credit record. With us, you’re not borrowing money. Instead, your home is partially owned by you and the remainder by our community of investors.

Unlike a mortgage, you are not obligated to repay the full cost (plus interest) of the property over a period of time. You will however be required to pay rent to the investors, on the share that you don’t own.

No, our product allows you to remain debt free. Unlike shared ownership schemes, if you choose to sell your home, your property can be sold in the normal way on the open market, without restrictions. Some key differences:

No right to first refusal. Shared ownership providers often have first refusal to try to sell your house before you can market it on the open market, which can cause delays.
No additional restrictions on your buyer. Many shared ownership providers only sell to individuals who meet strict eligibility criteria, and there are a limited number of mortgage lenders willing to loan on shared ownership properties.
More property choice. With Crowdtolive® you are able to apply with most properties currently listed for sale on the open market, unlike the limited stock of dedicated shared ownership homes.
Freehold option. Most shared ownership properties are leasehold. The Crowdtolive® scheme gives you the option of purchasing a freehold property.
No subletting. Subletting is not allowed under Crowdtolive® as you are responsible for the rent and must use the property as your main residence.

We acknowledge that in some cases Shared Ownership might be a better fit than our Crowdtolive® scheme.

The company

About Us

We are a team of professionals that believe in offering alternative solutions to conventional debt financing. We continue to build innovative solutions and challenge the status quo.

Elite Capital and Management Services Limited is a UK based FCA regulated company (FCA Reg 822039) that owns and operates the Crowdtolive® scheme.

Elite Capital and Management Services Limited is regulated in the UK by the Financial Conduct Authority (Reference Number: 822039).

Property search

Finding a Home

We will review all freehold properties where the Purchase Cost is below £500,000. However, we look at several factors including (but not limited to):

Location
Type of property
Purchase cost

Yes. This is your home so you can paint the walls, change the carpet and put up your favourite pictures. We call these aesthetic changes.

For any more substantial alterations that will impact the value of the property, such as an extension or loft conversion, you would need to seek the prior approval of your other investors.

No, we will take care of that for you. The house will be purchased in your name and a company name, therefore the offer will need to be made by the platform.

You and the Company would own the property together based on your respective share. Investors will purchase shares in a Company that will co-own the property with you. Both names would be entered in the Land Registry and the percentage of ownership recorded.

Purchasing

The Buying Process

No, this is up to you. You just need to have a minimum of 10% of the Purchase Cost.

We work out your home-buying budget using information like your household income and the amount you’ve saved for a deposit. Where a bank uses this information to work out how much to let you borrow, we use it to work out how much you can afford to pay in rent. This could mean that you can afford a nicer home in an area you actually want to live in.

Investors who are looking to invest in the UK property market. Most of our investors are looking for an alternative to the conventional buy-to-let market.

You would own the property, as well as the Company. Investors will purchase shares in a Company that will co-own the property with you. Both names would be entered in the Land Registry and the percentage of ownership recorded.

Fees and payments

Costs

Registering and sharing your project with us is totally free. Once you have selected your home and the seller has accepted the company offer, we will require you to send your deposit to your e-wallet on the platform. We will also ask you to pay for a house survey to ensure that the property does not have any major defects and that the selling price is within market value.

Prior to purchase:

Property survey fee
Administration fee (if your property purchase is successful, this fee will be deducted from the platform fee)
Electrical installation condition report
Gas safety fee

At the point of purchase:

Property purchase cost (proportionate to your ownership)
Annual building insurance cost
Property inventory cost
Platform fee (3% of the funds you invested, only payable once the purchase is complete)

Annually:

Annual gas safety fee
Annual building insurance cost
Electrical installation condition report

Example: If the property purchase cost is £200,000 and you purchase 10% of the property, you pay £20,000. The platform fee would be £600 (3% of £20,000).

The Property Purchase Cost involves:

Property price
Legal fees
Stamp duty

Yes, annually you will pay:

Building insurance
Annual gas safety fee

We will arrange the insurance policy and the gas safety check on your behalf and provide you with the invoice to pay annually.

Buildings insurance protects against things that go wrong, and gas safety checks ensure that your property is safe for you to live in. As you are living in the property, it is fair to make these your responsibility.

As you will live in the property, you will be responsible for its maintenance.

You split this cost with the other investors, according to how much of the home you own. For example, if you buy 10% of the home, you only pay 10% of the Stamp Duty. Stamp Duty is a tax paid to the government every time a home is bought, worked out as a percentage of the home’s value.

Unfortunately not. Because you’re buying a home with our investors via a Limited Liability Company, the government charges a higher tax rate. However, you only pay Stamp Duty in proportion to your ownership. For example, if you start with 10% ownership, you only pay 10% of the Stamp Duty.

Monthly payments

Rent

We work out your rent by looking at similar homes in the same area. This is the normal way to determine rent for any home. Remember, you only pay rent on the amount of the home you don’t yet own.

Example: If you own 10% of a home and the market rent is £1,000 per month, you only pay 90% of the rent. In this example, your rent would be £900 per month.

If you do not pay your rent it is likely that you will be evicted and your home will be sold. Once the property is sold, deductions will be made from your share of the property before any capital is returned back to you, if any.

If at any point you believe that you will be unable to meet your rental payments, we urge you to contact us as soon as possible.

Yes. This product was built to enable you to live in the property as your main residence. It is not intended for buy-to-let projects.

Yes. Once a year your rent will increase at the rate of CPI (Consumer Price Index) + 0.5% per annum.

Example: If the rent in your first year is £1,000 per month and CPI is 1%, then 1% + 0.5% means your rent in year two would be £1,015 per month.

Yes. Your rent can go down when you purchase more of your home, as you only pay rent on the share you don’t own.

The product is part ownership and part rent. You pay rent only on the part you don’t yet own. Although you don’t immediately own 100% of the home, you can treat it as your own. Key benefits include:

You are a co-owner of the property
You pay a discounted rent
You have more rights than a tenant
You can increase your ownership every 3 months

As co-owner you are fully responsible for the maintenance and repairs required to the property.

Growing your share

Buying More of My Home

Yes. Every three months you will be given the option (not the obligation) to purchase an additional share of your property. The amount you purchase is up to you, however the minimum amount is £5,000.

The only limit is that we would not oblige investors to sell their shares if they are in negative equity (selling at a lower price than they bought them for).

All you need to do is complete a simple form which we will provide, and send it back to us for processing. You will be charged a 3% admin fee of the amount you purchase. For example, if you purchase £5,000, you will pay an admin fee of £150.

Yes, and this is what we want for you too!

The purchase price is calculated as A + B, where:

A is the higher of: (a) the Initial Purchase Value; or (b) the Initial Purchase Value multiplied by the HPI index for the month two months before the Exercise Date, divided by the HPI index for the month two months before the date of the Deed.
B is 1% of the Initial Purchase Value for each completed year from the date of the Deed until the Exercise Date (up to a maximum of 10% of the Initial Purchase Value).

No, there is no limit on how much you can buy every year.

Yes, you will need to provide us with 3 months’ notice to increase your ownership.

Moving on

Leaving My Home

In the first 5 years, as long as you continue to pay the agreed rental payments (monthly and on time), nobody can tell you to leave as long as you are paying rent and not breaching the contract. We want you to feel safe and secure.

It is important to note that on each 4th year of your lease agreement, you will be offered the opportunity to renew the lease for a further 5 years. If you do not want to renew, the property will be marketed for sale.

If you decide to renew, the investing partner will be offered the opportunity to agree to a 5-year renewal. In the event that the majority of the investing partners (51%) decide they do not wish to renew, you will be offered the opportunity to purchase the remaining share you do not own. If you decide not to, the investors’ share will be offered to other investors, and if no buyer is found, the property will be marketed for sale.

The property will be sold, however you will still be responsible for the rental until the property is sold. If you decide to sell before the lease expiry, you will need to pay for a property valuation (normally around £350). You will also be solely responsible for other sale-associated costs such as legal and estate agent fees, as you are initiating the end of the partnership.

Example: If the property is sold for £300,000, estate agent and legal fees cost £5,000, and you own 10% of the property, you would receive £25,000.

Important information

Risks

As with all property purchases, it is important to know that investing in property involves risks, including loss of capital and illiquidity. This is not an exhaustive list of risks and you should read the full risk warning alongside these FAQs.

This product is not protected under the Financial Services Compensation Scheme (FSCS).

The product offered is not a mortgage, hence you do not have the protections of MCOB 13. For further information on MCOB 13, please review the Financial Conduct Authority definition on their website.

Making a Complaint

Providing great customer service is important to us and we do everything we can to prevent complaints. However, we appreciate that sometimes things might go wrong.

If you are unhappy with any aspect of our service, please email us at customer@CrowdToLive.com or call us on +44 203 542 1452. Please let us know:

Your personal details
What has gone wrong
What you want us to do to put things right

We will be in touch as soon as we can and let you know what happens next. We aim to resolve complaints within 3 working days of receipt. For more complex issues we may need longer and may ask for further information.

If we are unable to resolve your complaint, UK residents can ask the Financial Ombudsman Service (FOS) to carry out an independent review. You have the right to ask the FOS to review your complaint if we have been unable to resolve it within 8 weeks. The FOS service is free and impartial.

Financial Ombudsman Service
South Quay Plaza, 183 Marsh Wall, London E14 9SR
Telephone: +44 (0)300 123 9123 or +44 (0)800 023 4567
Email: complaint.info@financial-ombudsman.org.uk

Frequently Asked Questions