With three projects launching last week, there will be no pledge limits in place for this proposed raise.
The subject property namely 2 The Avenue, Leigh, Lancashire, WN7 1ES - (a former bank) - is located in Leigh, which is 7.7 miles southeast of Wigan and 9.5 miles west of Manchester. The town has a population of approx. 43,000 and has good network links being 6.1 miles from the M61. Train links from Daisy Hill train station (3 miles north of the site) provides direct travel to Manchester in 30 minutes and Liverpool in 1 hour.
The town also benefits from several amenities including, public houses, Sacred Heart Catholic School, ASDA superstore (among other superstores), Town Hall, Central Primary School, Town Centre and Central Bus Station etc. Further details can be found on the interactive map at the top of page.
Leigh has undergone some regeneration including it’s Sports Village – with an 11,000 capacity stadium, athletics arena and a Morrisons store. In 2011 “The Loom” a £50 million retail development opened (near Bridgewater Canal) which comprises a cinema, Tesco Extra, Nando’s and many other retail/leisure facilities.
The property benefits from planning, which has been granted by Wigan Council – ref: A/18/86333/PDO for a change of use from vacant offices to 18 apartments
The breakdown of each apartment and estimated values are as follows:-
Apartment 1 – 2 bedroom £125,000 (758 sq ft)
Apartment 2 – 1 bedroom £85,00 (522 sq ft)
Apartment 3 – 2 bedrooms £100,000 (607 sq ft)
Apartment 4 – 2 bedrooms £115,000 (701 sq ft)
Apartment 5 - 1 bedroom £100,000 (598 sq ft)
Apartment 6 – 1 bedroom £90,000 (535 sq ft)
Apartment 7 - studio flat £57,500 (348 sq ft)
Apartment 8 – 1 bedroom £70,000 (434 sq ft)
Apartment 9 – studio flat £87, 500 (530 sq ft)
Apartment 10 – Studio flat £55,000 (329 sq ft)
Apartment 11 – studio flat £52,000 (320 sq ft)
Apartment 12 – 1 bedroom £90,000 (534 sq ft)
Apartment 13 – 1 bedroom £107,500 (651 sq ft)
Apartment 14 – 1 bedroom £110,000 (666 sq ft)
Apartment 15 – 1 bedroom £95,000 (570 sq ft)
Apartment 16 – Studio flat £55,000 (326 sq ft)
Apartment 17 – 2 bedrooms £117, 500 (713 sq ft)
Apartment 18 – Studio flat £55,000 (335 sq ft)
Total GDV: £1,567,500
The borrowers have exchanged contracts on the purchase of the property having agreed to buy it for £500,000.
The contracted build contract sum in accordance with DBR Builders NW is £770,000. With the inclusion of the purchase price, cost of finance, professional fees and contingencies, the total costs are estimated at £1,450,000 giving an estimated out turn profit of £142,500. However, the borrowers have no intention of selling the completed development, preferring to let the flats, hold and refinance onto a long term commercial mortgage.
CrowdProperty has agreed to lend the borrower £1,000,000 across a 3 phase raise for a maximum of 15 months. The first phase raise will be for £350,000 and will contribute towards the purchase of the property. The borrower will receive the remaining monies upon IMS verification. The initial loan to value will be 70% dropping to 69.1% (including rolled up interest) at exit.
CrowdProperty will have a first charge of the loan on behalf of The Crowd as registered in the normal way with the Land Registry.
The loan will commence on 28th March 2019 when the borrowers will complete the purchase of the property.
The borrowers strategy is to hold the property for it's rental potential. With this in mind the borrowers intend to re-finance on completion of the works.
min. loan (6 months)
15 month loan
Fabio Frisenda and Piotr Szydlik are well known to CrowdProperty having lent on other projects in Burton and St Helens. They have demonstrated an ability to address and understand every aspect of the development process. Their in house construction team know how to work to budget, programme and comply with Statutory regulations.
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.
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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.