Pearn House is a Grade II listed two storey former convalescent home which is over 11,000 square feet in size. The building is set within landscaped grounds which occupy a substantial enclosed level corner site at the junction of Eggbuckland Road and Hartley Road. It is located in a well established and sought after residential district less than 2 miles north of Plymouth city centre.
The borrowers, Your Property Development (Pearn) Ltd negotiated a conditional contract at a purchase price of £525,000. Planning permission has been granted (16/02343/LBC) for change of use and conversion into 10 high end luxury apartments for the over 55's market. Planning has lifted the value to £650,000 (RICS view). The building will comprise:
- Ground floor - 5 x two bedroom apartments
- First floor - 5 x two bedroom apartments
RICS view on GDV of completed conversion is £2,600,000.
CrowdProperty will lend £1,050,000 for up to 15 months - £455,000 towards the purchase price and £595,000 towards the cost of works. The £595,000 will be released in stages and as verified by our Independent Monitoring Surveyor. The loan to value will initially be 70% reducing to 40% on completion of the conversion works.
The length of the loan is a minimum of 6 months and a maximum 15 months. Interest and capital on this project can be repaid in stages as the loan is paid back by the borrower (in minimum tranches of £250,000). The interest on the repaid amount will fall away, but you will continue to earn interest on the outstanding balance.
The target start date for the loan is 30th June 2017.
|Minimum 6 month Loan||Full 15 month loan period|
Sale of units to over 55's market
Team of 5 individuals operating through an SPV called Your Property Development (Pearn) Ltd
Billy Turriff – Previously a management consultant, working with a number of development and construction companies. Currently a property developer with a 30 unit portfolio, valued at £4.5m. Completed a number of development projects including 4 Grade I listed buildings in the Wirral where he paid CrowdProperty lenders back 2 months early.
Christina Kusytsch – Previous career as PWC accountant, she is now a property investor and developer with 26 years experience. She owns a multi million pound portfolio of 40 properties and has been involved in over 100 property renovations.
Michael Kyte – Set up a company in financial information and later also founded a natural horsemanship business; both were later sold. He is also Co founder of Your Property Network Magazine.
Anthony Lyons – Co-founder of Your Property Network Magazine, he has also owned a property portfolio of single and multi-lets for the past 10 years. Managed the refurbishment of over 20 projects.
Simon Platt – Involved in property since 2005, he has built a £3.5 million portfolio. Refurbished and flipped several properties around Bournemouth, later building a development of 3 houses in the same area.
We are delighted to be funding the development of this magnificent building in Plymouth. The borrowers are well known to us as they have previously borrowed from CrowdProperty and repaid their loan early. The building contractors have been used on another project which was also funded through CrowdProperty and did a great job. The RICS surveyor who valued the property is very local to the development and knows it very well. And finally the borrowers are using £350k of their own funds in this project such that the initial LTV of 70% falls to 40% of the GDV at the end of the development. All of these factors mean we are very confident in this project and the team delivering it, which is why we have awarded it the CrowdProperty stamp of approval.
* Please see full risk statement here.
† Estimated Sales Value is more formally referred to as GDV - Gross Developed Value
‡ Interest Cover is a measure of the project's ability to cover the interest payments from profits and is calculated by dividing the Projected Return on Costs by the Total Interest incurred throughout the loan period