Your funds are committed for the duration of the loan that you have selected for investment. Lendy loan durations vary between 3 months and 12 months.
Lendy will repay capital to investors once the borrower redeems the loan at the end of the term of the loan (or earlier if the borrower elects to repay early).
When this is an option, it will be made clear in the loan information on the platform. In certain circumstances, borrowers may request to extend the term of their loan. This might be because of a number of factors, for instance, it is taking longer than anticipated for them to get planning permission through, or a lender they want to refinance their loan with is slow with its processes.
Whilst this is a common occurrence within the short term property lending market, such requests are considered on a case by case basis by our dedicated loan servicing team and we will only agree to extend the term of a loan if the request passes our rigorous approval process. As part of this process we may sometimes request an updated valuation of the underlying security property, to ensure we are comfortable with the level of risk.
If we need to extend the loan, depending on the individual circumstances, we may re-list the loan as a new project or alternatively if there are no material changes to the security i.e. an increase in LTV, restructure the loan for a further term.
Should you need access to the capital you have lent, before a borrower is due to pay it back, you may use our Secondary Market facility to make all or some of your loan parts available to other investors, please see here for more information.