Fully Funded

Station Road, Hinckley, LE10 1AW - Phase 2

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

£200,000

interest paid*

8%

funds pledged

£200,000

number of investors

303

% of target pledged

Fully Funded

project type

HMO (House in Multiple Occupation)

loan term

up to 11 months

security

1st charge

project phasing

2 of 2

total loan facility

£420,000

floor area

2787 sq.ft.

rics valuation

£275,000

cost of work

£425,000

est. sales value (gdv)**

£670,000

initial loan to value

69.1%

loan to gdv

63.00%

owed at exit to gdv***

67.40%

strategy & vision

This launch is the 2nd and final phase of a 2 phased raise on the Loan Agreement between CrowdProperty and the borrower where we are raising £200,000 having previously raised £220,000 towards a facility agreement of £420,000.

The agreed loan term is 12 months (max) from 30th April 2019 so the Phase 2 loan will be for approx. 11 months. Each raise will merge into the existing legal agreement and as with all our loans, 1st charge security registered with the Land Registry is confirmed. Lenders to this phase will receive interest at 8% per annum over the remaining period of the loan or when the loan is repaid in full or part.

The day 1 release from the Phase 1 raise was £190,000 representing an Initial LTV of 69.1%, The LTV will fall to 67.4% (including rolled up interest) once works have been completed. Phase 2 monies will be utilised to continue the conversion works and be released on the verification of our Independent Monitoring Surveyors inspections.

The borrowers, WorldBasics Capital Ltd have embarked on the conversion works and to date the following progress has been made:-

1) Strip out, demolition and alterations
2) Internal partitions
3) Ceiling finishes
4) External window and external doors
5) Drainage and external works
6) Installation of electrical services

Works planned in the forthcoming months include:

1) Basement tanking
2) Roof works
3) Internal doors
4) Wall finishes
5) Floor finishes
6) Fixtures and fittings
7) Sanitary installations

The conversion works are estimated to take approx. 22 weeks and the contractors have been on site for 11 weeks.

ABOUT THE PROJECT

The project is situated in Hinckley within an edge of town centre location fronting Station Road. Station Road comprises a mix of tertiary retail and office buildings. Hinckley has a population of 105,078 and is located about 10 miles south-west of Leicester. The town is centrally linked to Leicester via the M69 at junction 21 and Coventry at junction 2 some 15 miles to the south-west. The town also benefits from a railway station with direct trains to Nuneaton, Leicester and Birmingham. Hinckley has a history dating back to the 11th century and is well known for being the former centre of the hosiery industry. Major local employers include Next HQ, Caterpillar and Triumph Motorcycles.

LOCATION AND DESCRIPTION

The property comprises a three-storey mid terraced building originally used as offices and built circa 1900. The construction is of traditional solid brickwork elevations beneath a double pitched slate clad roof and attached single storey flat felted roofs. Externally, there is direct pavement access to the front. To the rear, there is a hard-surfaced yard providing limited off road parking. In total, the site is approximately 259 sq. m and includes an area of flying freehold whereby the first and second floors of the property over-sail a ground floor retail unit to the south-east of the building.

Planning permission was granted by Hinckley and Bosworth Borough Council ref: 18/00801/FUL for the change of use of existing offices to form a house on multiple occupation (HMO) and 2 self-contained apartments. The development will comprise 13 units, an 11 bedroom HMO and 2 apartments. Following the completion of the proposed conversion the accommodation will be laid out as follows:

Basement:
Communal utility room

Ground Floor:
HMO room 1
1 self-contained en-suite studio flat
1 bedroom flat (en-suite)

First Floor:
HMO rooms 2 - 6 (12.9 sq. m - 14.2 sq. m)

Second Floor:
HMO room 7 - 11 (10.4 sq. m - 16.1 sq. m)

exit strategy

On completion of the conversion works the borrower will rent out the individual rooms, refinance and hold.

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

CrowdProperty Comments


From the start, the borrower has communicated with us on progress. The Borrower is experienced and will deliver the project within time and budget. Thereafter the Borrower will let out, re finance and hold.

The

CrowdProperty

Shield

Rigorous due diligence
1st Charge Security
Unparalleled expertise
more
*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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