Fully Funded

Mowbray Street, Kelham Island, Sheffield, S3 8EN

Please note, for this project, pledges will be limited to a maximum of £0 until 10.05am. After 10.05am, you can create pledges larger than £0 or increase the size of your pre-existing pledge. This is subject to the project amount remaining which needs to be raised.

loan amount

£340,000

interest paid*

7.5%

funds pledged

£340,000

number of investors

298

% of target pledged

Fully Funded

project type

Residential (Standard Construction)

loan term

up to 12 months

security

1st charge

project phasing

1 of 1

total loan facility

£340,000

floor area

4264 sq.ft.

rics valuation

£490,000

cost of work

£0

est. sales value (gdv)**

£490,000

initial loan to value

69.39%

loan to gdv

69.39%

owed at exit to gdv***

69.39%

strategy & vision

This is a serviced bridging loan agreement with interest paid monthly on a loan term of 12 months against a terrace of 3 existing properties at 3, 5 & 7 Mowbray Street, Kelham Island, Sheffield, S3 8EN. The property is currently used as an 18 bed House of Multiple Occupation (HMO). The borrower has agreed a purchase price of £490,000 with completion set for 4th September 2019. The borrowers strategy is to improve and refurbish the HMO to provide more bedrooms, all with en suites, Once planning has been granted the borrower will look to re-finance onto a refurbishment loan. During this initial loan the borrower will let out number 7 under a single AST. CrowdProperty has deemed the total income across the borrowers portfolio will be sufficient to meet the monthly payments. Therefore, lenders will receive 7.5% per annum, but will be paid monthly at a rate of circa. 0.625%.

The property is to the north of Sheffield City Centre; Sheffield has a population of 518,090 (2011) and is situated 12.5 miles north of Chesterfield and 22 miles south west of Rotherham. Kelham Island has had an influx of investment with the vision of creating a residential area for working professionals with much of the industrial and commercial accommodation having been replaced by apartments, restaurants and bars. Sheffield train station is just 1.2 miles from the subject properties. Trains to Manchester and Leeds take less than an hour and trains to Birmingham take around 71 minutes.

Local amenities include but are not limited to:

Sheffield Hallam University – 1.1 miles
Sheffield City Hall 0.9 miles
Kelham Island Community Childcare – 0.5 miles
Sheffield Crown Court – 0.5 miles
Kelham Weir – 0.3 miles
Tesco Express – 0.3 miles
Bus Stop 0.1 mile

Interests:

Kelham Island Museum – 0.4 miles
Sheffield City Kayak Club – 0.4 miles

The subject properties comprise the following:
Basement: 1,056
Ground Floor: 859
First Floor: 677
Second Floor: 1,097
Attic: 575
Total 4,264

The 3 storey terraced buildings are about 100 years old and are constructed of traditional brickwork under a pitched roof. Having been used as a HMO for many years the property is now tired and requires extensive refurbishment. The proposed planning application will seek to obtain consent to provide 23 HMO rooms, all of which will have ensuites, together with communal kitchen and living areas. The borrower also intends to split the titles so that each property will be separately licensed and can therefore independently be refinanced onto long term commercial mortgages.

The refurbishment works will commence on a phased basis once the borrower has secured the improved planning consent. The Borrower is securing a company let moving into No. 7. which will take affect after completion and a light refurbishment. This will provide rooms for 6 working professionals at a time as Serviced Accommodation, at £20 per occupant per night (for 5 nights per week).

exit strategy

Once planning has been granted the borrower will look to refinance onto a refurbishment loan. Should planning not be granted the borrower will look to dispose of the properties accordingly. Please note, CrowdProperty has lent on the existing value assuming planning has not been granted.

indicated return for your pledge

interest

total

min. loan (6 months)

£200

£5,200

12 month loan

£600

£5,600

CrowdProperty Comments


CrowdProperty's interest on this project is strictly taking into account the existing use value. Having worked closely with the borrowers and with the project being situated outside of both an Article 4 area and conservation area CrowdPoperty are confident that planning will granted and therefore enhanced values. The borrowers have hands on experience of managing properties, having chosen a city centre location they are confident there will be demand for the properties, either for a re-sale or to let.

The

CrowdProperty

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*Please see full risk warning
**Estimated Sales Value is more formally referred to as GDV - Gross Development Value
***Owed at exit to GDV is calculated as the total capital + any planned loan interest against the RICS GDV for the project. These figures do include subsequences on projects funding development costs during the course of the project.

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Your capital is at risk. No FSCS protection. Past performance is not an indicator of future results. Tax treatment depends on individual circumstances and may change. full risk warning.

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