High Brooms Road, Southborough, Royal Tunbridge Wells, TN4 9DP

JVIP (Kent) LTD

Finance Required
Development funding
Funds Pledged
£209,500
% of Target Pledged
99.8%
Interest paid*
8%
Est. Sales Value (GDV)†
£850,000
Loan Amount
£210,000
Loan to value (LTV)
70%
Loan term
Up to 18 months
Strategy & Vision for the Development

The site is an open parking area and vacant terrace of five garages along with a detached garage storage building which will be demolished.

Land is held by a JVIP Company (St Johns TW Ltd) and will be transferred to an SPV Company called St Ledger Ltd.

Planning permission was granted under planning application reference number 16/07444/FULL for the demolition of existing lock up storage garages and the erection of two semi-detached three storey three bedroom houses and creation of widened access point.
- House 1: 1,054 sq ft (98 sq m)
- House 2: 1,054 sq ft (98 sq m)

Value of the land with planning is £300,000 (RICS view). CrowdProperty have agreed to lend £210,000 against the land with planning resulting in an LTV of 70%. The loan period will be a minimum of 6 months and a maximum of 18 months.

The anticipated Gross Development Value of the completed development is £850,000 (RICS estimate) based on current planning permission. The borrowers are looking to improve the current planning permission, and once obtained will return to discuss a phase 2 raise for the construction and delivery of the project.

Indicated return for £1,000 pledge
  Minimum 6 month Loan Full 18 month loan period
Pledge £1,000.00 £1,000.00
Interest £40.00 £120.00
Total repaid £1040 £1120
Your capital is at risk if you lend to businesses that develop property. You may lose all of what you lend. See our full risk warning for more information.
Exit Strategy

Sale of houses

Projected Costs
Purchase Price
£300,000
Total Cost of Project
£762,875
Projected Returns
Projected Profit
£87,125
The Developer

The developer is a family run business based in Tunbridge Wells, Kent. They are very experienced, having successfully completed over 30 projects during the last 14 years, consisting of extensions, conversions and new builds.

They have previously borrowed from CrowdProperty on two separate occasions. The first loan was for the conversion of the former Flying Dutchman public house into 4 flats and two commercial units which has been paid back. The second loan was for the construction of a pair of semi-detached houses on the site of a former pub car park which was paid back early.

CrowdProperty Comments

This is a very straightforward loan on land with full planning permission for a profitable project. The borrowers will come back for the Phase two loan in approximately 3 months’ time for the build costs. The borrowers are very experienced and are well known to CrowdProperty having borrowed twice from CrowdProperty and paid back early on both occasions. We are very happy to give the CrowdProperty stamp of approval to this project and expect it to fill very fast.

* 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

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