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:
Communal utility room
HMO room 1
1 self-contained en-suite studio flat
1 bedroom flat (en-suite)
HMO rooms 2 - 6 (12.9 sq. m - 14.2 sq. m)
HMO room 7 - 11 (10.4 sq. m - 16.1 sq. m)
On completion of the conversion works the borrower will rent out the individual rooms, refinance and hold.
min. loan (6 months)
11 month loan
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.
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.
A ‘1st legal charge’ gives CrowdProperty the legal right to take ownership of a property in the unlikely event that a property professional defaults on their loan repayments. 1st legal change is the highest level of security and gives CrowdProperty all the rights that a mortgage company holds. We have 1st legal charge on every project listed on our platform. This is an essential, non-negotiable criterion to ensure your funds are safe.
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.