Virgil is a French fintech that provides funding for real estate deposits of up to 100k euros, becoming a co-investor in the property by financing 50% of the deposit amount. This helps clients obtain bank loans for purchases. Wayhome allows people to buy a home by purchasing a minimum 5% stake, then paying rent on the remaining portion and increasing ownership over time, reducing barriers to entry. Both services aim to expand property ownership access while managing risks for investors and banks.

1. DIGITAL INNOVATION DIGEST
#19 – May 2020

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REAL ESTATE DEPOSIT PROVIDER BY
VIRGIL
SHARED OWNERSHIP PROPERTY BY
WAYHOME
Digital Innovation Digest #19
3
7

3. 01REAL ESTATE DEPOSIT PROVIDER

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▪ Virgil is a French fintech who developed a web based service to
provide funding for a real estate acquisition.
▪ As the real estate prices have soared since 20 years while the
wages have stagnated, more and more millennials don’t have
the initial deposit requested by the banks.
▪ Virgil is providing to their clients that requested deposit
IN SHORT
Real estate deposit provider

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▪ Virgil clients can request up to 100K € to fully or partially
provide the deposit requested by banks for a real estate loan
application.
▪ The fintech is not lending the amount, but is co-financing the
property with a 50% margin.
▪ Within ten years, in addition to the 2K € fixed cost, there are
two possibilities:
- The clients has sold the property, and Virgil is receiving 50%
more of the initial stake. For example, if the fintech has
financed 10% of the property, they will receive 15% of the
selling price.
- The clients doesn’t sell the property and need to repurchase the
share of Virgil. With the same example, the fintech will receive
15% of the estimated price of the property.
HOW IT WORKS
Real estate deposit provider

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▪ Real estate acquisition is still a goal for the large majority
(90%) of millennials in France, but they often don’t have the
sufficient deposit requested by the banks, especially in Paris
where the real estate prices have skyrocketed the last twenty
years while the wages have been quite stable.
▪ As these clients have all the conditions to subscribe a real
estate loan except for the initial deposit, Virgil is filling the gap
and is becoming co-investor.
▪ By taking a 50% margin on the initial investment, the risk is
quite low for Virgil : they are losing money only if the value of
the property decrease by 33% or if the client cannot reimburse
his loan the first years.
ANALYSIS
Real estate deposit provider
Service goals
• Individual Clients: Provide an initial deposit to
allow a bank real estate loan
• Investors: Provide investment possibilities in
residential real estate
• Banks: Reduce the credit risk by providing a larger
deposit

7. 02SHARED OWNERSHIP PROPERTY

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▪ Wayhome lets people buy a house without having a mortgage.
The client is buying a part of the house, and Wayhome is
financing the rest. Following that acquisition, the client is
paying a rent for the remaining part he doesn’t own yet, and
can also increase his ownership overtime.
▪ As Wayhome is financing a large part of the property, that
scheme is not considered as a mortgage. That service is
dedicated to first time buyers, not for individual investors.
IN SHORT
Shared ownership property by Wayhome

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• Wayhome clients are buying a small part of the property,
minimum 5%, with their own funds, and the Wayhome
investment partner is buying the remaining amount.
• Then, a rent is calculated based on similar homes in the same
area, and the client is paying a rent based on the percentage
he didn’t own.
• Every month, the client can buy more of the property by
increasing the rent payments or by making one off payments
with a maximum of 5% per year.
• There are two possibilities to end the shared ownership service:
- The client want to leave the property and the investing partner
can decide to buy the client share or to sell the property on the
market
- When the client has reached 40% of ownership, the client can
buy the remaining stake or keep the situation as it is at that
moment.
HOW IT WORKS
Shared ownership property by Wayhome

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▪ Wayhome is reducing the investment risk based on several
criteria:
- The proposed acquirer need to fit eligibility criteria (credit
score, income, …)
- The initial deposit need to be at least 5 % of the acquisition
price
- The property need to respect several criteria (location, size,
ready to move in, …)
▪ Moreover, the client can buy back the full property stake only if
the price has increased, meaning the risk is quite low for a long
term investor
▪ On a client point of view, the solution proposed by Wayhome is
quite flexible as he can buy the remaining stake on every
occasion he wants. And if the price has been raising, he can sell
his owned stake within 3 months.
▪ Even though the client is paying a rent, the property is
considered as his own, so he’ll not have no restriction from the
investing partner (except for large renovation).
▪ For the moment, Wayhome is waiting for the authorisation from
the Financial Conduct Authority and is supported by Allianz.
ANALYSIS
Shared ownership property by Wayhome
Shared ownership goals
• Clients: the scheme allows clients with a small
deposit or unable to access a sufficient mortgage to
buy their dream home a way to buy their own
property.
• Investing Partner: Wayhome is giving the
possibility to institutional investors to invest on
residential market but without being a landlord. As
co-investors, they can expect a better return and less
risks on their investments.

11. Initio
@initio_eu
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1030 Schaarbeek
Belgium
+32 (0)2 669 77 44
Initio.eu
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