FUNDING SOLUTIONS FOR PROPERTY ENTREPRENEURS

Montello was set up in 2008, amidst the turmoil of the credit crisis. We recognised that not only had the banking and funding landscape changed - possibly forever - we believed that there was fundamentally a better way to provide finance. We wanted to create a business that, instead of being in the bank mindset of always looking for a reason not to do a deal, looks at a transaction from the perspective of ‘how can we make this work.’

Montello is a business that embodies the concept of ‘new finance’, and doesn’t just look at our customers as ‘borrower’, we treat our customers and introducers as our ‘partners’.

Montello has access to some of the most flexible funding lines in the market. We have our own range of discretionary investment funds, which allows us to build relationships with our customers and to provide innovative funding solutions. Montello also has a number of bank funding lines, which provides competitively priced funding, and provides us with a substantial balance sheet and annual lending capacity well in excess of £200m.

[The Montello Real Estate Opportunity Fund] consolidates Montello’s position in the market as a ‘one stop shop’ for real estate entrepreneurs… funding developers from acquisitions to bridging finance, through development and completion of projects’. ‘Montello Launches New Fund’ (8 January 2014)

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Montello was originally set up as a pure bridging finance business, and bridging finance remains very much at the core of what we are about. We pride ourselves on being the fastest and most flexible lender in the market.

One of our slogans is that “if its not done in less than 2 weeks, then its just not bridging finance”. We uphold this attitude in everything that we do at Montello. We aim to provide our customers with the most efficient and swift funding available in the market.

We are able to provide bridging finance terms, along the following lines:1st & 2nd Charge (residential and commercial)

Loan sizes: From £100k to £7m1

LTVs: Up to 75% (OMV)2

Loan term: Up to 12 months

Interest rates: From 0.75% / month3

Arrangement fee: 1%, plus the broker fee

Exit fees: NONE

Upfront fees: NONE

“Montello has gone from strength to strength, developing a niche market for itself as one of London’s most successful bridging lenders with a hardcore reputation for fast and flexible finance”. ‘Meeting Montello’ (January 2014)

1 We can lend above £7m, on a case by case basis, and usually if we have a pre-existing relationship with the borrower. 2 If there are special circumstances where the borrower has been able to buy the property ‘under market’, then we will require a cash contribution of at least 10%. 3

Standard stuff here. We don’t pretend to be the cheapest in the market, just the best. The lower the LTV, and the more central to London the property, the cheaper the interest rate will be. We are also transparent with our pricing, and will never ‘change the terms’ after we have provided a Letter of Offer.

What we like:We typically like transactions (and can be very competitive) where:

| the property is a residential property in London (ideally within the M25)

| first charges (we can do second charges, but prefer first position)

Some things that we can do, that many other lenders can’t:Due to our extremely flexible funding lines, we are able to lend to borrowers:

| that are old (ie, we have no hard age limits)

| on short leasehold properties

| we can accept re-typed valuations

| pubs, hotels, restaurants, offices and mixed-use properties are all possible

| UK Ltd and offshore companies, trusts and foreign nationals

| land, with or without planning (but we’ll be honest, we don’t really like lending against land without planning, but we can do this if we have a pre-existing relation with the borrower)

| discharged bankrupts, and borrowers with CCJ’s. We will need a detailed explanation on what the circumstances are before proceeding, but can take a view.

We have a very streamlined process, and are the fastest lender in the market:Upon making a bridging loan enquiry with Montello, we will assess the proposition and then issue a Letter of Offer. The Letter of Offer will contain all of the main terms concerning the transaction (such as the interest rate, duration etc). All of our documentation is designed to be concise, transparent and clear.

Once we have received the Loan Application Form completed, and our Letter of Offer back signed, we go straight to the valuation and legals. We do not have ‘Decisions In Principle’ documents, or other unnecessarily bureaucratic steps in the lending process. Borrowers and intermediaries are often surprised at how streamlined our processes are - and this allows us to hold our claim to being the ‘fastest in the market’.

Development finance, mezzanine, joint-ventures and equity funding:Montello has evolved into much more than just a bridging finance lender, and we are able to provide a very wide range of funding solutions.

RELATIONSHIPS ARE IMPORTANT:

We are very relationship-driven with what we do at Montello. Therefore, for example, we are unlikely to provide equity financing to a borrower where we do not have any form of pre-existing relationship.

This relationship with Montello may be with the relevant property entrepreneur or developer directly, or a strong relationship with an intermediary that we have worked with for a number of years.

We have many borrowers that we have worked with over a number of projects, initially providing bridging finance, and have extended that relationship to provide extremely flexible funding - including equity. Once we have worked with a borrower, and got a feel for their ability to perform and see how we are able to work together, then we are able to truly become a ‘partner’ and an essential part of their business.

In late 2013, Montello received approval from the financial regulator in Luxembourg, for it third fund: The Montello Real Estate Opportunities Fund.

Montello has partnered with global real estate powerhouse, CBRE, to create this funding vehicle which has significant scale and potential. It provides Montello with extremely flexible funding, and allows Montello to provide funding or investment, such as:

| large scale bridging finance | joint venture funding

| mezzanine finance | equity funding

We are able to provide these funding solution across England (but with a continued focus on the South East, and London), and for both residential and commercial property.

REAL ESTATEOPPORTUNITY FUND

Consistent with Montello’s reputation for being one of the most innovative lenders in the UK mortgage market, in early 2013, we spun out a new business called LendInvest.

LendInvest was the first peer-to-peer lending platform for mortgages to go live in the world. Others are now copying us, and trying to tap into this innovative and rapidly emerging area of the alternative finance landscape.

“[LendInvest] marks a dramatic shift in the sorts of funding undertaken through peer-to-peer websites”.London developer takes on largest ever P2P loan, Front page of the Financial Times (24 January 2014)

LendInvest in the press

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101 New Cavendish Street London W1W 6XH

Tel: 0800 130 3388 Fax: 0800 130 3389

www.montello.co.uk