Frequently Asked Questions

Smart Legals is a property investment platform based in County Durham that connects investors with property-backed fixed-term bond opportunities. We offer bonds secured by legal charges on UK property assets, providing fixed returns over set terms of 2 or 4 years. Our aim is to make property investing accessible, transparent, and secure for everyone.

Smart Legals sources property-backed investment opportunities and packages them as fixed-term bonds. Investors select a bond, choose their investment amount (minimum £1,000), and decide how they would like to receive interest -- either quarterly or at maturity. A regulated security trustee holds a legal charge on property assets to protect your investment throughout the term. At maturity, you receive your original capital plus any outstanding interest.

Smart Legals bonds are available to UK residents aged 18 and over. Investors must meet certain eligibility criteria, which may include self-certifying as a high-net-worth individual, a sophisticated investor, or confirming they will not invest more than 10% of their net investable portfolio. Full eligibility details are provided during the application process.

The minimum investment amount is £1,000. There is no maximum limit, though we always recommend that investors diversify their portfolio and never invest more than they can afford to lose. Your capital is at risk and returns are not guaranteed.

You can choose to receive interest payments either quarterly or at maturity. Quarterly payments provide regular income throughout the bond term, while the maturity option accumulates interest and pays it as a lump sum at the end of the term. The interest rate differs depending on which option you choose -- bonds typically offer a higher rate for interest paid at maturity.

At the end of the bond term, your original capital (principal) is returned to you along with any remaining interest. If you opted for quarterly interest payments, you will receive your principal back. If you opted for interest at maturity, you will receive your principal plus all accumulated interest as a single payment. Funds are typically returned to your nominated bank account within a few business days of the maturity date.

Every Smart Legals bond is backed by a legal charge on UK property assets. This means that real property is pledged as security for your investment. An independent, regulated security trustee holds this charge on behalf of all bondholders, adding an additional layer of protection. However, it is important to understand that your capital is still at risk -- these investments are not covered by the FSCS, and property values can fluctuate.

A security trustee is an independent, regulated entity that holds security (such as legal charges on property) on behalf of bondholders. The security trustee acts in the interests of investors, ensuring that the security is properly maintained throughout the bond term. If a borrower defaults, the security trustee has the authority to enforce the legal charge, which may include selling the property to recover funds owed to investors.

In the event of a borrower default, the security trustee will act on behalf of bondholders to enforce the legal charge held over the property assets. This may involve taking possession of the property and selling it to recover the funds owed. While the legal charge provides a layer of protection, there is no guarantee that the full amount invested will be recovered, as property values can decrease and the sale process may take time. Investors should be aware of this risk before investing.

Opening an account with Smart Legals is straightforward. Click the "Get Started" button on our website and follow the registration process. You will need to provide personal details, verify your identity, and complete an investor classification questionnaire. Once your account is approved, you can browse available bonds and make your first investment.

Once your account is set up and verified, you can fund your investment via bank transfer. Full payment instructions, including our bank details and your unique reference number, are provided during the investment process. Funds typically clear within 1-3 business days, after which your investment is confirmed.

Smart Legals bonds are fixed-term investments, which means your capital is committed for the duration of the bond term (2 or 4 years). Early withdrawal is generally not permitted. You should only invest funds that you will not need access to during the bond term. If you have any concerns about liquidity, we recommend speaking with a financial advisor before investing.