Premier Legal Financial GP Limited is the manager of a contributory mortgage scheme involving two limited Partnerships, (Premier Legal Finance Limited and Premium Legal Finance Limited), where the funds you contribute are combined with the funds of other contributors and are lent to clients well known to us under non-consumer credit contracts. The borrowers are borrowing funds for investment or business purposes. Our mortgages are ordinarily secured by a first mortgage over a secured property, and we endeavour to keep the loan value ratio (LVR) at or below 65-70%, so your funds are sufficiently secured. Our borrowers must provide us with a property valuation before borrowing funds. Funds are currently invested at a rate of 9-10% for first mortgages and higher for mezzanine or second- ranking mortgages. The interest is paid out quarterly (15 February, 15 May, 15 August and 15 November), less Resident Withholding Tax at the rate you nominate. The term lengths of the mortgages are quite variable, but we advise you of the specifics of each mortgage before your funds are invested. You can opt for the interest to be paid out to you each quarter or held in our trust account on your behalf or reinvested. If the loan your funds are invested in differs from the ordinary circumstances as outlined above, we will explain why.

 

We send out Investment Summaries when your funds are first invested into a mortgage, detailing the borrower, the secured property and any other prior mortgages on the property, if the mortgage is mezzanine funding. If, upon reviewing the Investment Summary, you are ever uncomfortable with where your funds are invested, please let us know and we can usually arrange for your funds to be moved to a different mortgage. If you ever want to withdraw part or all of your funds invested, as advised this can usually be done on four weeks’ notice, at no charge.

 

We require all of our investors to be certified as Eligible Investors, and so we will need you to confirm you have the necessary experience to qualify as an eligible investor by signing an Eligible Investor Certificate which states that you have experience and expertise in investing in early-stage companies or contributory mortgages. An eligible investor is legally defined as a person who has sufficient knowledge and experience dealing in financial products that enables them to sufficiently assess the merits and risks of a transaction. For more information on what is classified as an Eligible Investor, please feel free to discuss this with Graeme or an independent lawyer. You will also need a lawyer or accountant to confirm your certification.

 

If you would like to invest, please email your application to info@premlegal.co.nz confirming your interest and whether you would like to invest in your personal capacity, or through a nominated entity. We will also need you to give us the IRD number, bank account number and tax rate of yourself or the entity you nominate, as we will need to take Resident Withholding Tax from your investment to comply with our tax obligations.