Relendex Overview

Relendex is a UK‑based peer‑to‑peer property lending platform. It links private and institutional investors with SME housebuilders and developers seeking short‑term development/bridging loans. Loans are asset‑backed by UK real estate 🏠, and investors earn fixed interest (typically ~9–11%) without paying any management or performance feesi. The firm is FCA‑authorised (FRN 723117) and approved as an Innovative Finance ISA manager (allowing £20k/yr tax‑free investment). Relendex highlights security (legal charges on property) and stable returns (average ~8%) as advantages. However, ⚠️ it is high‑risk: loan defaults and property value falls can cause losses. It has no FSCS guarantee and liquidity is limited (secondary market has no guaranteed buyers). In Sept 2025, Relendex struck a £15 million co‑investment deal with the British Business Bank to boost lending to UK housebuilders.

Relendex Investment Products

• Type of Asset: Relendex offers debt investments in commercial real estate loans (development and bridging finance) secured by UK property. Investors fund senior‑debt loan tranches with first‑charge security.

• How It Works: Loans are listed via competitive auctions. Investors bid on loan “parts” and, if accepted, their funds go into a legal charge on the property. Interest accrues at a fixed rate (quoted to borrowers) and is paid quarterly to lenders. Relendex conducts all loan documentation and servicing; investors lend directly to borrowers via the platform.

• Returns Generation: Investors earn the coupon interest on each loan. Typical coupon rates range about 9.5–11.25% for developers, translating to net returns around 6–9% for investors after diversification. The current average investor return is ~8.05% (annualised). Interest is paid quarterly. Because Relendex charges no investor fees, lenders keep 100% of the interest.

• Legal/Structural Setup: Relendex Ltd (Company No. 07486328) is the FCA‑regulated platform operator (FRN 723117). Borrower loan contracts are arranged by Relendex Lending Ltd and secured by first charges; client funds are held by Relendex Security Trustees Ltd in segregated accounts. The platform publishes a clear fee schedule for borrowers and operates as an IFISA manager.

• Geography/Sector Focus: All loans are to UK‑based property developers (residential or commercial) under rigid due‑diligence. Typical projects are housebuilding or MMC (modern methods construction) schemes. Relendex does not invest in outside sectors or geographies, focusing strictly on the UK real estate market.

• Investment Metrics: Loan sizes typically range £0.75–6 million per project. Loan terms usually span 6–36 months (most are ~12–24 months). Borrower LTVs are capped (often ≤70% GDV or ≤90% loan‑to‑cost), averaging ~53% LTV. The minimum investor bid per loan is roughly £500 (depending on auction). Investors should diversify across many loans to mitigate concentration risk.

• Major Risks: Loan default is the primary risk (borrowers may fail to repay due to market downturn or project delays). In such cases interest may cease and capital may be at risk. Investments are high‑yield and not FSCS‑protected, so total loss is possible if collateral doesn’t cover the loan. Loans in formal default cannot be traded (loss of liquidity). There is also platform risk (Relendex’s business viability) and secondary‑market illiquidity (no guaranteed buyer). Fraud risk is mitigated by FCA oversight and institutional backing (BBB partnership) but cannot be entirely eliminated.

Relendex Company Profile

Relendex was co‑founded by Michael Lynn (ex‑accountant) and Sam Rosen (founder of Burford Capital) in 2013. Today the company is privately owned (no public parent) and headquartered in London (Turnmill St). The senior leadership includes Executive Chairman Paul Sonabend, Managing Director Max Lehrain, and Lending Director Martin Murphy. The board and team also feature specialists in finance operations and credit (see team page). Relendex’s appointed representative for large accounts is Farringdon Portfolio Ltd (FCA FRN 926588) which manages institutional mandates. Key partners include the British Business Bank (co‑investment backer) and brokers for SME developers. The legal structure consists of Relendex Ltd (the FCA‑authorised platform), with sister companies Relendex Lending Ltd and Relendex Security Trustees Ltd for loan facilitation and client money custody. Relendex is fully regulated by the UK Financial Conduct Authority (FCA FRN 723117) and is authorized to arrange peer‑to‑peer lending and operate an Innovative Finance ISA. No regulatory sanctions have been recorded; the FCA considers these investments high‑risk.

Relendex Volumes and Results

Relendex’s lending volumes have grown steadily. As of Sep 2025, the platform had originated about £199.1 million in loans. Of this, £123.7 m has been repaid and £52.9 m remains live. Approximately £6.0 m of loans are currently in recovery (3% of the book). Only £0.408 million in losses has been crystallised so far (roughly 0.2% of funded volume). In fact, Relendex reports that only two loans have ever led to a loss crystallisation to date, implying very low historical default impact. The current average return across loans is about 8.05% p.a.. New deals typically target 7–9% yields to investors (interest rates to borrowers ~9.5–11.25%). The number of investors is not publicly disclosed, but growth in volumes and IFISA inflows suggests a rising user base. Key recent stats: total funded ≈£200 m (Sep 2025), live book ~£53 m, and aggregate returns around 8.0%. (All figures as stated by Relendex at end‑2025.)

Relendex Risk Management

Relendex employs a conservative underwriting and monitoring approach. Every loan undergoes independent valuation and rigorous review by an experienced credit teamr. Standard mitigants include low loan‑to‑value limits (often ≤70% GDV, average LTV ~52%), mandatory interest escrow accounts, amortizing pay‑downs on some loans, and personal guarantees where possible. Development loans typically require licensed architects and quantity surveyors to oversee drawdowns and expenditure. Before listing, borrowers submit full project plans and company accounts. Relendex categorises loans by seniority and LTV (Senior A, B, mezzanine) and sets expected default rates and loss‑adjusted yields accordingly.

Post‑funding, loans are actively monitored. Relendex conducts a 100% annual audit of the loan book (rather than relying on statistics). Any covenant breach or delay can trigger a Technical or Formal Default, with penalty interest of ~150% of the coupon. Defaulted loans are swiftly managed: formal defaults can be declared with minimal delay, and defaulted loan parts are removed from the resale market. Recoveries (via sale or re‑financing) are pursued vigorously. Notably, anticipated loss provisions are updated loan‑by‑loan in each year’s Outcomes Statement. The platform’s published Outcomes data shows no significant historic losses on senior loans, and anticipated recovery rates are conservatively estimated to protect investors. In summary, Relendex emphasises credit quality through thorough due diligence and ongoing oversight, and its outcomes statements provide transparent metrics on defaults and yield.

Relendex Platform Functionality

• Secondary Market: Relendex offers a built‑in resale marketplace. Investors can list loan parts for sale on a matched basis. When sold, settlements (capital + accrued interest) exchange automatically between investor accounts. However, there is no guarantee a buyer will be found, so this market is only a tool, not a guaranteed liquidity source.

• Diversification & Portfolios: Investors are encouraged to spread capital across multiple loans. For professional clients, the platform partners with Farringdon Portfolio to offer model loan portfolios or bespoke mandates. There is no auto‑invest feature on Relendex’s site; investing is done by selecting loan auctions or mandates.

• Investor Dashboard: Registered investors get an online dashboard (“My Loan Parts Portfolio”) showing all current investments, bid history, and repayment schedules. Investors also receive monthly statements and updates on loan performance. The interface is English‑only and deals are denominated in GBP.

• ISA Support: Relendex supports the UK Innovative Finance ISA (IFISA). UK taxpayers can invest up to £20,000/yr in an IFISA wrapper, earning interest tax‑free. (Outside an IFISA, interest is treated as income for tax.)

• Other Features: There are no formal insurance or buyback guarantees. All loans rely solely on collateral enforcement. Relendex provides detailed loan documents and valuations before funding, but does not supply separate “expert report” attachments. The platform and help center supply FAQs, but investors largely perform their own credit analysis.

Relendex Platform Pricing

• Investor Fees: Relendex charges no fees to lenders. There are no signup, management, performance or exit fees for investors. All interest (minus taxes) goes to investors.

• Borrower Fees: Loan applicants pay arrangement/commitment fees. The standard arrangement fee is ~2% of the loan (including a 0.25% commitment fee). This fee covers underwriting and administration. Relendex may waive or reduce fees for repeat borrowers or preferred projects (“from 1%” according to marketing), but typically it is ~2%. Legal, valuation and monitoring fees (e.g. surveyor, site visits) are paid by borrowers at cost.

• Transparency: All fees are published in the Tariff of Fees and Charges. Borrowers know their fees up front. Investors are told clearly that their returns are gross interest (100% after borrower fees). Relendex does not charge a platform margin embedded in the interest – the quoted borrower rate is the rate passed on to investors.

• Exit/Default Fees: If a borrower defaults, Relendex applies fixed penalty fees (e.g. £500 plus £250/month) to cover recovery costs. These affect borrower obligations, not investors directly. There are no hidden or ongoing administrative fees deducted from investor cash flows.

Negative Publicity about Relendex

Relendex’s profile includes some notable criticisms and issues. In 2013, industry press warned that Relendex’s first loan auction (student housing) had only 32% funding after extension, casting doubts on viability. (The platform ultimately recovered and continued operating.) More recently, customer reviews on Trustpilot and forums highlight loan payment delays and liquidity frustrations. For example, one investor reported a 13‑month wait with no interest or capital repaid on a £3k investment. Another cited a 6‑month loan still unpaid after a year. The firm has been slow to respond publicly to some negative reviews. No formal regulatory sanctions or warnings against Relendex have been issued; in fact, the FCA website confirms Relendex is an authorised firm. However, the lack of guaranteed buyback or FSCS protection remains a red flag. Platforms with property loans can also face project‑specific failures, so investors often point out that project monitoring and project diversification are critical. Overall, apart from isolated loan issues and early criticisms, Relendex has avoided any major scandals reported in the media.

Relendex Success Stories

Relendex has achieved some notable milestones in its niche. By late 2025 it had funded nearly £200m in loans, helping build thousands of new UK homes. It secured institutional backing when the British Business Bank agreed to co‑invest up to £15m in Relendex loans (announced Sept 2025). The company has also been recognized with industry awards: in 2024 Relendex won “UK Property Development Lender (sub-£1bn)” at the Alternative Credit Investor Awards, and in 2025 was shortlisted again along with a nod for P2P Lender of the Year. Key platform milestones include its 2017 full FCA authorisation (allowing IFISA products) and the 2020 publication of detailed Outcomes Statements (reflecting transparency). Recent case studies highlight projects funded by Relendex – for example, a residential scheme in Bath and a regeneration in Dalston – but these are mainly marketing examples. While Relendex has not had “exits” in the equity sense, its partnerships and steady growth provide social proof of success.

Is Relendex safe and regulated?

Relendex is FCA-authorised (FRN 723117) in the UK. It operates under UK financial regulations and is a reputable firm. However, investments are high-risk. Loans can default or fall in value, and there is no FSCS protection. Investors should understand they are not guaranteed to get all their money back.

What returns can I expect?

Typical borrower interest rates are roughly 9.5–11%, targeting about 6–9% net yields for investors. In practice, Relendex reports an average portfolio return of about 8.0% p.a.. Actual returns vary by loan LTV and seniority. The platform’s conservative underwriting means realized losses have been extremely low historically, so past net returns on surviving loans have been close to targets.

What are the main risks?

The chief risks are borrower default and illiquidity. If a borrower fails or the property falls in value, investors can lose capital (only collateral is the security). Market downturns could reduce recovery values. Loans also carry credit risk (developer viability). Because the platform is high‑risk, investors should also consider platform risk and the possibility that the business model could fail. These loans are not covered by FSCS and a full capital loss is possible. Due diligence and diversification are essential.