Wayhome, a Way to Buy Property “Debt-Free,” Secures £3M via Seedrs

Wayhome has raised 102% (£3,087,566) of its £3,000,001 target from 448 investors via its crowdfunding campaign, carried out via Seedrs. There are now (at the time of writing) 20 days left in this sale.

According to the Wayhome team, they aim to offer “a new way to buy a home, completely debt-free, with just a 5% deposit and no mortgage.”

Located in London, UK, Wayhome operates in the Property sector (Digital B2C). Incorporated in September 2016, the firm reports a Valuation (pre-money) of £22.4M.  The company reports a share price of £0.759; Equity offered: 12.11%; Tax relief; EIS.

The firm’s business highlights are:

  • Raised a £75m fund to buy homes, in partnership with Allianz GI
  • Helped over 150 families find their dream home
  • A new category in homeownership with a new form of housing tenure
  • Estimated potential of £30k gross profit per home over 12 years

Key features are as follows: Secondary Market; Seedrs nominee min. £15.18 +; Direct investment min. £25,000.00 +.

As noted by the firm, there is “a generation of people in the UK who can comfortably afford to rent their dream home, but are unable to get a mortgage to buy it.” They started Wayhome “to help them become homeowners.”

With the average home now costing 9x the average income, and an average first time buyer only able to borrow 3.55x income, millions of hardworking families “are locked out of homeownership.”

The firm added:

“We developed Gradual Homeownership, a hybrid model between owning and renting, to help these people buy their dream home. With us, they could buy a home worth up to 10x income, with just a 5% deposit and no mortgage required. This allows them to buy in a completely debt free way with no risk of negative equity. We’ve secured an initial £75m of pension fund capital, in partnership with Allianz Global Investors, to buy homes with our customers.”

They also mentioned:

“Since our launch in September 2021, we have already completed on 65 homes with our customers and have the next 100 offers accepted and going through the buying process, and are on a mission to reinvent homeownership for many, many more.”

Unlike other homeownership options, at Wayhome they claim that they “don’t charge [their] customers any fees at any point.”

The company earns their revenue from the pension funds “who invest in [their] homes.” This means their revenue “is contractual and long-term.”

The company further explains that they charge two types of fees to our pension fund investors:

  • First, we earn a fee on the completed purchase of each property. While we deploy the initial £75m fund this fee is 1%, but thereafter it will be 2%.
  • Second, we also receive an annual management fee of 0.8% for each year that the customer lives in the home.

Both of these fees are “calculated on the value of the capital invested by the pension funds.”

For example, if the pension funds invest £350,000 into a home (which is our approx. average today), the firm “would earn £3,500 on day 1 (rising to £7,000 when our fee reverts to 2%), and £2,800 per year after that.”

Based on the fund holding each property for a projected 12 years, they “calculate that we would earn over £30,000 per property over its lifetime in the fund.”


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