Relendex review shows that Relendex is a new peer-to-peer lender that allows you to lend to commercial property owners. The Real Estate Lending Exchange – Relendex – enables you to lend against business premises, and also commercially-operated residential properties worth at least £500,000. To be clear: small-time buy-to-let landlords and homeowners need not apply for a Relendex loan.

All the loans are secured against shop, office, industrial and leisure properties that are rented out by the owners. The rents earned are used to pay the interest on your loans. Relendex considers capital protection as the most important pillar of its business. An experienced team of experts evaluate borrowers rigorously, ensuring all loans meet the strict lending and underwriting criteria set out by Relendex before admitting them onto the platform.

Nine key criteria are considered when evaluating a borrower and their property, the most important being Loan-to-Value (LTV) and Interest Coverage Ratio (ICR). A risk grading is then produced by the property lending team as a guide for you and other investors.

Key facts about Relendex

Estimated annual returns: Up to 11%
Launched: 2013
Autoinvest: Yes
Loan security: Real estate as collateral
Provision fund: No
Registered investors: N/A
Buyback guarantee: No
Minimal investment: £500
Time to become invested: Varies on loans availability
Time needed managing: Very Low
Regulation: FCA regulated company
Country of operation: United Kingdom
Defaulted loans: N/A
Borrowers verification: By the platform
Accepted currencies: £
Accepts investors from: United Kingdom

Relendex Review: Pros and Cons

PROS
– Returns up to 11%
– Fast KYC process as ID verification (takes up to 24 hours)
– FCA regulated company in UK

CONS
– No buyback guarantee
– High minimum investment

Competitors

Rebuilding Society, Zopa, EstateGuru

Relendex Review: what I have experienced so far

Peer-to-peer lending is not a savings product, therefore you are not covered by the Financial Services Compensation Scheme (FSCS), this applies to Relendex. Also, you are responsible for selecting your own loans, which for first time or novice investors can be problematic. Relendex ensures that you are paid your interest from property rents before the borrower – the commercial-property owner – gets the difference. Relendex is a niche peer-to-peer lending platform catering to retail investors and professional investors alike. Investors can bid on loan parts and set their own rate, or accept a set, fixed rate of return. Also, all loans are asset-secured and vetted rigorously with risk grades applied by way of Relendex’s unique Risk Matrix.

To register and prove your Identity takes only few minutes. I have to emphasize that their user interface is really simple and easy to use. It’s is not crowded by a lot of unnecessary info and other distractors. To understand how to use platform takes maximum 5 minutes. Minimum investment amount is 500 pounds.

The team looks very strong (already 15 members) with a decent experience in finance. Track record is already there. All loans are secured by a mortgage against professionally valued properties that can be liquidated to recover debt. Even though Relendex expect this to be unlikely, as represented by its 0% default rate to-date, there are no guarantees, so this sort of portfolio would suit a more hands-on investor with an appropriate risk appetite. Some of the P2P platforms have 15% or even higher default ratio (in most cases short term loans operators), so it means that Relendex has a decent scoring model in place.

Need to emphasize that Relendex is a FCA regulated platform that gives additional security for the company. It looks that all the other factors are positive if you consider Relendex to invest.

Relendex review is written by Tomas Medeckis