Investments & Mortgages

SDM Law does not provide financial advice. You need to obtain financial advice from an authorised financial adviser.

However, we do make available investment opportunities through contributory mortgages.

Since 1993, our firm and its predecessors have successfully arranged contributory mortgage investments through our solicitor's nominee company. In 2016, a change in the law required a change in the structure of these loans. As a consequence of these changes, Kensington Finance Limited Partnership (KFLP) now offers similar contributory mortgage opportunities through its limited partnership.

Clients and investors are able to invest funds in KFLP which are then lent to third parties requiring mortgage funding. The loans made to a third party are usually secured by way of a first registered mortgage against the title of the borrower's property.

KFLP vets borrowers and their funding proposals as follows:

• KFLP usually only lends up to two thirds of the value of the property
• In most cases KFLP obtains registered valuations on the property being offered as security. In a small number of cases, when the borrowing is a small sum compared to the value of the property, we sometimes rely on the latest Council Valuation
• Loans are usually for a period of 1 year or less
• KFLP discusses its findings with the investors to ensure that they are happy with the terms of the loan and in particular the security and proposed repayment date

We believe that the advantage to our clients and investors in investing with KFLP is that their investment is secured by way of a mortgage over a specific property and that usually the loan is no more than two thirds of the value of the property.

Interest is paid monthly by KFLP to our investors and the interest rate is at a much more competitive rate than bank rates.