Paid Back in Full

244 Castle Street, Dudley, DY1 1LP

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

£250,000

interest paid*

8%

funds pledged

£250,000

number of investors

46

% of target pledged

Fully Funded

project type

HMO (House in Multiple Occupation)

loan term

up to 15 months

security

1st charge

project phasing

1 of 1

total loan facility

-

floor area

3412 sq.ft.

rics valuation

£125,000

cost of work

£213,000

est. sales value (gdv)**

£410,000

initial loan to value

60%

loan to gdv

61%

owed at exit to gdv***

68.59%

strategy & vision

The borrower has owned this property in the Metropolitan Borough of Dudley since 2015. The property comprises the 1st and 2nd floors of 3 storey building held on 999 year lease (out of which 997 years is unexpired). The property is registered in the name of the company ‘Property Dreams Come True Limited’.

Planning permission has been granted to convert the commercial space into a 12 bedsit House in Multiple Occupation – 16/0475. All the rooms are en suite with communal kitchen in each floor.

RICS valuation of existing property is £125,000. RICS view on GDV of completed unit is £410,000. The total estimated cost of works is £213,000. Estimated cost of finance, fees and contingency is £70,000.

CrowdProperty will lend £250,000 for up to 12 months - £75,000 on completion of loan agreement and £175,000 towards cost of works. Loan to value will initially be 60% rising to 61% at the end of the build.

The length of the loan is a minimum of 6 months and a maximum 12 months.

exit strategy

Build, Remortgage and let:
o Plan A – Through local agents
o Plan B – As JV with local partner
o Plan C – As Rent to Rent

Type of tenants:
o Priority 1 - Key workers – Hospital technicians and nurses
o Priority 2 - Blue collar workers
o Priority 3 – LHA tenants

indicated return for your pledge
interest
total
min. loan (6 months)
£200
£5,200
15 month loan
£600
£5,600

CrowdProperty Comments


Whilst there is risk in any loan you make and your capital is at risk, we believe that this is a relatively low risk project.

The borrower on this development is highly experienced and so very capable of delivering this project on time and to cost. The building is in a fantastic location, in the centre of the town with high rental demand. We like it when the borrower has to use some of their own money, which gives them more incentive to get the project right and also helps keep the loan to value relatively low.

This is why we are delighted to award this project the CrowdProperty stamp of approval.

The

CrowdProperty

Shield

Rigorous due diligence
1st Charge Security
Unparalleled expertise
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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.

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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