Unmortgage, the London-based startup that lets you buy as little as 5% of a dwelling and lease the remainder, has announced a partnership with Allianz Global Investors( AllianzGI) to create a new money to be used to purchase belongings offered via the platform.
The AllianzGI-managed fund is targeting a sizing of PS500 million, according to my informants, while I are all aware that the cope was actually signed mid last year but is only being disclosed today. That’s surely a ingeniou chip of PR timing as it gives the impression of continued momentum for Unmortgage after founder and CEO Ray Rafiq-Omar departed last month. In other statements, Rafiq-Omar was actually the CEO when the AllianzGI deal got across the line.
Founded in 2016, Unmortgage attempts to solve the increasing difficulty first time purchasers face trying to get on the home ladder as rising residence tolls normally outdo wages. If people hire, they are usually cannot save the large deposit required for a mortgage. It is this “vicious circle” that Unmortgage want to break: by improve households that can afford to rent gradually buy a home.
Under the Unmortgage part-own part-rent proposition, renters can buy as little as 5% of the property they want to live in, without taking out a mortgage, and then rent the remainder. Unlike traditional’ shared ownership’ schemes, the give isn’t restricted to new construct properties and holders can ” staircase”( i.e. buy more of the belonging, thus reduce their lease) whenever they want and by so much better or as little as they choose.
Meanwhile, AllianzGI’s fund will enable Unmortgage to purchase its ownership stake of the homes it buys in collaboration with renters. In turn, it enables AllianzGI’s institutional investor clients to invest in residential belonging as an resource class.