Security

A mortgage on the homes or land secures your loan

Together with other lenders, you provide a loan to the company that owns the homes or the land. A civil-law notary creates the mortgage and registers it with the Land Registry (Kadaster). An independently appointed foundation holds the mortgage on your behalf and looks after the lenders’ interests.

Get in touch Create an account

Meppel Two villa-style blocks, delivered in 2021 and let ever since

What secures your loan

Every loan rests on four layers of security, fixed in advance

With Rust and Stabiel, your loan rests on homes that are already let. With Opbouw, it rests on the land for the new homes, for which planning permission is already final. In every case, the four layers below are fixed when the notary creates the mortgage.

Front view of tenanted homes, with the entrance and the lawn
Your loanRust · tenanted homes · 5% a year · 5 to 7 years
  1. 1
    First mortgage

    The homes

    The notary creates a first mortgage on the homes and registers it with the Land Registry. If the obligations under the loan are not met, the holder of the mortgage can have the homes sold or collect the rent.

  2. 2
    Pledge

    The rent

    Because your interest is paid from the monthly rental income, that income is pledged to the lenders. If the obligations under the loan are not met, the foundation can collect the rent paid by the tenants.

  3. 3
    One project, one borrower

    The company

    Each project is held in a separate company, which owns only those homes. If another Woonstaete project does not go to plan, it does not affect your loan.

  4. 4
    Independent holder

    The foundation

    An independently appointed foundation holds the mortgage and the pledge on behalf of all lenders together and looks after their interests. Its board is independent of Woonstaete, and we cannot replace the foundation without the lenders’ consent. Read about the foundation

Front view of tenanted apartments
Your loanStabiel · tenanted homes · 6.25% a year · 5 to 7 years
  1. 1
    Second mortgage

    The homes

    The notary creates a second mortgage on the tenanted homes and registers it with the Land Registry. If the obligations under the loan are not met, the holder of the mortgage can have the homes sold or collect the rent.

  2. 2
    Pledge

    The rent

    The homes are already let when the loan is raised, and your interest is paid from the rental income. This income is therefore pledged to the lenders, so the foundation can collect the rent if the obligations under the loan are not met.

  3. 3
    One project, one borrower

    The company

    With Stabiel, too, the project is held in a separate company, which owns only those homes. If another project does not go to plan, it does not affect your loan.

  4. 4
    Independent holder

    The foundation

    An independently appointed foundation holds the mortgage and the pledge on behalf of all lenders together and looks after their interests. Its board is independent of Woonstaete. Read about the foundation

Homes under construction on the land, still in scaffolding
Your loanOpbouw · during the construction period · 8% a year · 12 to 18 months
  1. 1
    Second mortgage

    The land

    The notary creates a second mortgage on the land and registers it with the Land Registry. If the obligations under the loan are not met, the holder of the mortgage can have the land sold.

  2. 2
    Final

    The planning permission

    The loan is only raised once the planning permission (omgevingsvergunning) is final. The land is therefore valued as a plot with permission for these homes.

  3. 3
    Grows with the work

    The new homes

    The homes that go up on the land during the construction period are covered by the same mortgage, so your security grows as the work progresses. No rent is paid yet in this period, so Opbouw has no pledge over the rental income.

  4. 4
    Independent holder

    The company and the foundation

    Here too, the project is held in a separate company that owns only this land and these homes. An independently appointed foundation holds the mortgage on behalf of all lenders together and looks after their interests. Read about the foundation

The three loans

The security behind each loan is clear before you sign

There are three loans side by side: Rust and Stabiel on homes that are already let, and Opbouw during the construction period, secured by a second mortgage on the land. Before you sign, the loan agreement and the Land Registry show which security belongs to your loan.

Rust

On tenanted homes, with a first mortgage. Interest paid monthly, term 5 to 7 years, from € 100,000. More about Rust

Stabiel

On tenanted homes, with a second mortgage. Interest paid monthly, term 5 to 7 years, from € 100,000. More about Stabiel

Opbouw

During the construction period, with a second mortgage on the land. Interest paid quarterly, term 12 to 18 months, from € 200,000. More about Opbouw

If the obligations are not met

The foundation then acts for all the lenders as one

A mortgage only has value if the documents set out how it will be enforced. The loan agreement states when the loan becomes due and payable. The trust deed states what the foundation then does on your behalf.

  1. 01

    An interest payment or the repayment is missed

    If the payment is not made within the period set out in the loan agreement, the loan becomes due and payable. This applies to all lenders in that project at the same time, not to each lender separately.

  2. 02

    The foundation takes over

    The independently appointed foundation holds the mortgage for the whole group and acts on your behalf. You do not need to go to the notary or the courts yourself, or get the other lenders to agree first.

  3. 03

    The homes are sold

    The foundation can have the homes sold. While the sale is in progress, it can collect the rent under the pledge.

  4. 04

    The proceeds go to the lenders

    The lenders are paid from the proceeds before the company’s other creditors. The trust deed, which you can read in the portal, sets out how the foundation settles this.

Check for yourself

Independent professional firms draw up the documents

Every loan is assessed in advance against the valuation of the homes. You can read the valuation report in the portal. We would be glad to go through the documents with you before you decide.

At the Land RegistryThe register is public. Anyone can look up which mortgage is registered on the homes and in whose favour.
In the portalThe loan agreement, the Information Memorandum and the trust deed, together with the project’s valuation report and tenancy file. You can read them before you decide.
At the notaryYour investment goes directly to the notary, who creates the mortgage in favour of the foundation and registers it with the Land Registry. You do not pay into a Woonstaete account.
At the foundationThe page on the foundation explains who sits on the board and how it works.
Next steps

Talk to us about the security, or read the documents

We would be glad to meet you for a personal conversation. You can already create an account in the portal. Investing is not possible yet; as soon as a project opens, your account will be ready and you will find all the documents there.

Do you have any questions about the security?

We can take you through the loan, the security and the documents by video call or phone, with no obligation. investeren@woonstaete.nl · +31 85 001 48 44

Get in touch Create an account
Frequently asked questions

Four questions we often hear about the security

Do I become a co-owner of the homes?

No. You provide a loan to the company that owns the homes, and you are a creditor secured by a mortgage. Maintenance, vacancies and tenant matters are therefore at our expense. In exchange, you receive a fixed rate of interest and do not share in any change in the value of the homes.

Why is the mortgage in the foundation’s name rather than mine?

Each project is financed by several lenders together. A single mortgage in the name of an independently appointed foundation puts all lenders on an equal footing, and the foundation can act without each lender having to sign separately. The page on the foundation explains who it is and who sits on its board.

What happens if the proceeds do not cover all the loans?

The proceeds are then shared among the lenders in proportion to their loans. You keep a claim on the company for the remainder, but that company owns only this project. You must therefore allow for the possibility that you will not recover the remainder. The risks are set out in the Information Memorandum in the portal.

Can I sell my loan or end it early?

No. The loan cannot be traded and runs until the end of the term. The terms are set out in the loan agreement and the Information Memorandum, both in the portal.

All questions