Wellesley Property Mini-Bond: FAQs

In July 2019, Wellesley closed its final mini-bond offering as it evolved its offering to exclusively offer listed bonds.

The Wellesley Property Mini-Bond is a retail bond which invest exclusively in Wellesley Finance Plc’s asset-backed lending business. The funds subscribed to The Property Mini-Bond are lent to UK property developers – both small businesses and individuals – and those loans are secured against tangible assets consisting mainly of UK residential property.

The Wellesley Property Mini-Bond is issued by Wellesley Finance Plc, an unregulated and distinct legal entity from Wellesley & Co Limited. Both Wellesley Finance Plc and Wellesley & Co Limited are subsidiaries of Wellesley Group Limited.

To redeem your Wellesley Property Mini-Bonds, simply log into your online Wellesley account, click the 'Wellesley Classic' button at the top of the page, then click the 'Give Notice' button next to the relevant mini-bond. You will need to provide notice of redemption at least six months prior to the redemption date (being the end of the applicable initial fixed term). Bondholders will receive their investment in full six months after they complete their notice of redemption (provided that the six-month notice expires after the relevant initial fixed term).

Wellesley will email you prior to the six-month deadline for redemption to remind you of the date (end of the initial fixed term) by which you will have to submit your completed notice of redemption. Until a completed notice of redemption is received, your holding of Wellesley Property Mini-Bonds will automatically continue and be capable of redemption by returning the notice of redemption on the reverse of your certificate.

By way of example, if you held a 4 Year Bond and notified Wellesley of your intention to redeem your Wellesley Property Mini-Bond six-months prior to the fourth anniversary of your bond, your capital and any interest will be repaid on the redemption date of your 4 year bond. If you do not notify Wellesley prior to the fourth anniversary of your bond, your bond will roll over for another year.

If you notify Wellesley of your intention to redeem one month on from the fourth anniversary of your bond, your capital and interest will be repaid six-months from the date Wellesley receives your notification of redemption.

No. As these are long term investments, it is unlikely that you will gain early access to your investment.

However, bondholders may submit a written request providing the reason for the request to Wellesley Finance Plc, and all such requests can only be made after the first anniversary of the bond.

As advised in the terms, Wellesley is under no obligation to accept your request for early redemption and therefore you should only invest in Wellesley Property Mini-Bonds if you are prepared to invest your money for the full initial fixed term.

Should your request be approved no interest will be paid for the invested term, and any interest that has already been paid will be deducted from your capital.

Early bond closure requests will be permitted in exceptional circumstances only.

No. Your investment is not covered by the Financial Services Compensation Scheme.

Wellesley Property Mini-Bonds are not ISA eligible. However, Wellesley’s listed bond products, including The Wellesley Property Bond, are ISA eligible.

We are required to apply a withholding tax at the basic rate of income tax (currently 20%) on all payments of interest made to any individual investor. We will arrange for the tax due on payments of interest to be deducted from the interest payment made to each investor and will pay any such amounts to HMRC on your behalf.

As we're unable to provide any personal advice on tax issues, should you have any queries regarding your tax position or liability, we recommend contacting your local tax office or an independent financial advisor.