Due to unprecedented product demand and as a result of user feedback, we have introduced a pledge limit for this project on a trial basis. This is to give those that take valuable time to perform necessary due diligence the greatest opportunity to successfully pledge at 10 a.m. Pledges will be limited to £5000 for the first 5 minutes that the project is live. Post 10.05 a.m pledges greater than £5000 can be created, or an existing pledge for this project can be increased (subject to availability).
The project involves the purchase of two properties: 28 & 30 Victoria Road, Tamworth, Staffordshire, B79 7HS which were purchased at Auction by the borrower. Tamworth has a population of approx. 77,000 and is part of the Borough of Staffordshire. Tamworth is situated between the towns of Lichfield, which is located 7.9 miles to the north via A51 and Sutton Coldfield which is 8.3 miles to the south via the A453. Birmingham can be reached in 30 minutes via J10 M42.
Tamworth offers a range of services including several primary and secondary schools, a range of public houses and restaurants, Tamworth Snow Dome, Drayton Manor Theme Park and Tamworth Castle.
Tamworth also has it's own train station, providing hourly trains to London Euston, half hourly trains to Nottingham and a regular service into Birmingham.
Both properties are located next door to each other and are located in central Tamworth, benefiting from the range of services aforementioned in the town centre.
The borrower has exchanged contracts on the purchase of the properties in his own name at a recent auction for £425,000 (£212,500 per property) held on 14th February. The completion of sale for these properties is the 14th March 2019. The purchase price is in line with the RICS valuation.
Please see the following link to the auction page:
The properties are 3 storey end and mid terrace Victorian properties of traditional construction. Planning Permission has been approved by Tamworth Borough Council under reference number: 0475/2018 for the change of use to 2 Houses of Multiple Occupation (HMO)
Each property is a alike with a net area of 3875 sq.m for both properties (1937 sq. ft each)
The ground floors currently comprise:
- Three reception rooms, two toilets, a sitting room, a conservatory, a family room and a kitchen
First Floor currently comprises:
- Living room, utility room, WC & Toilet, Games room and TV room
Second Floor currently comprises:
- Office, canteen and four storage areas
Externally both properties have gardens
CrowdProperty has agreed to lend the borrower £267,000 in one raise to purchase both properties.
CrowdProperty will be offering the borrower a bridging (bullet) loan in order to complete the purchase of both properties, The loan will be for 12 months with interest rolled up and paid at the end of the loan term.
The borrower will receive a day 1 advance of £267,000 in order to purchase both properties. This represents an initial Loan to Value of 62.8% based on the current purchase price £212,500 per property (RICS verified as being Current Market Value). The estimated Loan to value at Exit will be 69.1% including rolled up interest based on the current purchase price
The borrower's exit strategy is to refinance the properties once he has completed the works and let the rooms.
The 12 month loan term is a maximum term and the borrower can pay back the whole or part anytime between 6 and 12 months.
As with all CrowdProperty loans the property will be secured by way of a 1st charge registered with the Land Registry.
Targeted loan commencement date of the loan to coincide with legal purchase of the properties is 14th March 2019
The borrower intends to refinance both properties following completion of purchase
Stephen is an experienced property developer and investor, with 10 years of experience in refurbishments to create high quality single lets, serviced accommodation and HMOs in the West Midlands.
Stephen conducted his first refurbishment project in 2010 on a three-bed apartment. Since then he has refurbished three city centre apartments and let out, engaged in a large commercial to residential development of a 14 bed HMO, refurbished a Birmingham city centre apartment block into serviced accommodation and this year alone already has a purchased an up and running HMO.
Prior to being in property, Stephen served in the British Army, where he project managed numerous high risk activities.
min. loan (6 months)
12 month loan
CrowdProperty seeks to assist the borrower with the purchase completion of two properties in Tamworth which were bought at auction. The borrower has several HMOs and serviced accomodation properties across the West Midlands. 28 & 30 Tamworth Road are set to become HMOs in the future due to planning already being in place
Our in-house property experts thoroughly assess each project proposal. We scrutinise the developer and any of their partners’ track records. Only the most promising projects, by the most experienced developers, will receive an informal offer. CrowdProperty will only work up to certain loan-to-value and loan-to-cost percentages, and each project must meet our 25% profit-on-cost criteria. For more information please view our risk statement.
A ‘1st legal charge’ gives CrowdProperty the legal right to take ownership of a property in the unlikely event that a property professional defaults on their loan repayments. 1st legal change is the highest level of security and gives CrowdProperty all the rights that a mortgage company holds. We have 1st legal charge on every project listed on our platform. This is an essential, non-negotiable criterion to ensure your funds are safe.
Our in-house experts perform strict and rigorous checks on all projects proposed. With almost 100 years’ experience in the industry, we work in partnership with our borrowers. We work in partnership with our borrowers until project completion. If a borrower were to default, CrowdProperty’s 1st legal charge allows us to take ownership of the project. Here we would utilise industry experience to ensure the most suitable exit strategy was followed.