Are Property-Backed Loan Notes Safe? What the Godwin Capital No. 8 Record Shows

Are property-backed loan notes safe? Not necessarily. A loan note may be secured against property or other assets, but that does not guarantee that investors will get their money back. The outcome can depend on the value of the underlying assets, the security arrangement, the company's financial position, and where investors rank if things go wrong.

Key facts

• Example used: Godwin Capital No. 8 Limited
• Company number: 12268652, England and Wales
• Status: In administration since 20 June 2025. Not trading
• Administrators: Steven Illes and Andrew John Duncan, MHA Advisory Ltd
• Registered charges: Five: four outstanding, one satisfied
• Official record: Companies House

The Godwin Capital No. 8 Ltd case shows why these checks matter. The company, incorporated in 2019, entered administration on 20 June 2025. Public filings and reports about the administration show why investors look at the security behind a loan note, the assets available to creditors, and where they rank.

This guide looks at what the public record says about Godwin Capital No. 8 Limited (company number 12268652), the points investors should understand, and the checks worth making before investing in property-backed loan notes. It is general information, not financial advice.

What are property-backed loan notes, and why do they carry risk?

A loan note is a way of lending money to a company. You hand over cash, and the company promises to pay interest and return your money after a set period. "Property-backed" means the money is meant to fund property projects.

The risk is simple. You are lending to one company, and the company must be able to repay you. If the projects fail or the money is not used as promised, repayment can stop. Many loan notes are also unregulated, so the usual safety nets may not apply.

What does the Godwin Capital No. 8 record show?

Godwin Capital No. 8 Limited was incorporated on 17 October 2019. According to Companies House, its status is "In Administration," and the administration started on 20 June 2025. Its listed business type is venture and development capital (SIC 64303).

Four directors are listed: Richard Selkirk Johnston, Andrew John Mitchell, Stephen James Pratt and Stuart Phillip Pratt. The administrators named on the record are Steven Illes and Andrew John Duncan of MHA Advisory Ltd.

Charges registered and what "secured" means

A charge is a legal claim over a company's assets. A charge can give a lender security over specified company assets if things go wrong, subject to the terms of the security and the rights of other creditors. This is what people mean when they say a loan note is "secured." The Companies House record shows five charges. One was satisfied in November 2021, and four are still outstanding. The first four were registered to Blue Water Capital Limited. The fifth, created on 8 November 2023, is held by Blue Water Trustees Limited. Both are named as security holders only. The charges register identifies the persons entitled to security. It does not establish every ownership relationship or the rights of individual investors.

Here is the lesson. A charge only helps if the assets behind it are worth enough, and if you know who holds it for you. Reports have raised concerns about whether the security will be sufficient to cover investors' losses. The Real Deal reported that administrators had warned that around £162 million of loan notes could be at risk of being lost in full. The word "secured" is not a guarantee.

Overdue accounts and confirmation statements

Companies are expected to file their accounts and confirmation statements by the relevant deadlines. The Companies House page shows accounts for the year to 31 March 2025 as overdue, with a deadline of 31 December 2025. The confirmation statement was also overdue, with a deadline of 30 October 2025.

Be fair here. Late filings can happen after an administration begins, so they do not prove wrongdoing. Still, missed deadlines are a useful signal to check before you invest.

Unregulated status (verify against the FCA register)

Many loan notes are not regulated investments. That means you may not get the protection that comes with authorised products. Do not rely on a blog, including this one, to confirm any firm's status. Search for the company and its promoters yourself on the FCA Register.

What has the FCA said about unregulated loan notes?

The FCA has continued to warn consumers about the risks of high-risk investments. International Adviser reported that the FCA issued a fresh warning after several firm failures. The regulator said consumers continue to lose money through these high-risk investments. FCA: warning about mini-bonds and loan notes

If a seller calls a loan note "safe" or "guaranteed," treat that as a reason to slow down.

What should you check before you invest?

Companies House status, filings and charges

Search the company on Companies House. Look at the status, the filing history, and the list of charges. Check whether accounts are on time and whether the directors have changed often.

FCA register and warning list

Check the FCA Register for the firm and the people selling the product. Then look at the FCA's list of unauthorised firms and individuals. Being absent from the list is not proof of safety, but being on it is a clear red flag.

Who sits behind the security arrangement

Ask who holds the charge, and who the trustee is. In this case, the charges are held by Blue Water Capital Limited and Blue Water Trustees Limited. Ask who they hold the security for, and what exactly they can claim if the company fails.

Whether developments can be independently verified

Ask for the address of each project, then check it yourself. Look for planning records, land ownership and progress. If you cannot confirm that a project exists and is moving forward, do not assume it does.

How investor money and returns are described

Be careful when returns look high and steady. Ask, "Where does the return come from?" and look for an answer you can check.

What should you do if something looks wrong?

Stay calm and act step by step.

1. Save your papers.Keep your agreement, proof of payment, emails and statements.
2. Check the company record.Look at Companies House for the status and the latest administrator reports. For Godwin Capital No. 8, these include a progress report filed on 29 July 2026.
3. Contact the administrators.Follow their instructions on how to submit your claim.
4. Ask your bank.Depending on how you paid and when, you may have a route to reimbursement. Ask your bank directly.
5. Report it.If you think you were misled, report it to Report Fraud and the FCA.
6. Watch for recovery scams.People who have lost money are often targeted again. Never pay anyone upfront for a promise to get your money back.

International Adviser reported a High Court freezing order of around £155 million. This is a report, not a proven finding. The directors' side should be read in the original sources.

The bottom line

So, are loan notes safe? Not automatically. A property-backed loan note can carry security, but that does not guarantee repayment. The Godwin Capital No. 8 case shows why investors need to look beyond the word "secured."

Before investing, check the company's filings, registered charges, regulatory status, underlying projects and the terms of the security. If something does not add up, take the time to investigate before committing your money.

Register your investment with InteliCo to see the available reports and monitoring options.

Related on InteliCo: Godwin Capital No.8 Limited, Godwin Capital No.1 Limited, Godwin Capital No.6 Limited. Each is a separate company.