Fully Funded

26-28 Elms Avenue, Eastbourne, BN21 3DN

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

£622,500

interest paid*

8%

funds pledged

£622,500

number of investors

278

% of target pledged

Fully Funded

project type

Serviced Accommodation

loan term

up to 12 months

security

1st charge

project phasing

1 of 1

total loan facility

£622,500

floor area

3498 sq.ft.

rics valuation

£830,000

cost of work

£0

est. sales value (gdv)**

£830,000

initial loan to value

75%

loan to gdv

75.00%

owed at exit to gdv***

75.00%

strategy & vision

This is the refinance of a CrowdProperty development loan set up in January 2018 to convert a pair of mid terraced victorian buildings formerly run as a hotel into 13 serviced accomodation units. With the works completed and the borrower letting the units there is no development risk and CrowdProperty has now agreed a 12 month serviced bridging loan to allow the borrower time to grow and prove the business before moving onto a long term commercial mortgage. This means lenders will receive interest on the loan monthly until the loan is repaid.

In January 2018 CrowdProperty lent the borrower £495,000 to convert the dilapidated hotel into 13 self contained serviced apartments. The works were completed in February 2019 and between April and July 2019 the bookings have increased from 8 nights in April to 45 nights in May. June bookings are at 95 nights whilst July and August confirmed bookings are currently running at around 80 nights.

Situated in Eastbourne town centre within close proximity of the sea front and a few 100m from the town centre, the town has a population of 100,000 people (2011 census). London is 1.5 hours by train whilst Brighton is 19 miles to the west via A27.

Elms Avenue is a mixed commercial and residential street with unrestricted on street car parking. The two 2 storey mid terraced Victorian properties with attic extensions and cellars have been completely refurbished, fully furnished and are now being offered as S.A. The number of units totals 13 self contained 1 bed apartments/rooms and are being operated under planning permission granted by Eastbourne Planning Authority reference: PC/170242.

The accommodation is arranged as follows:
Lower Ground Floor - Plant room
Ground Floor - 2 x 1 bed studios @ 18m2 each, 2 x 1 bed apartments @ 31m2 each, 1 x 1 bed studio @ 25m2,
First Floor - 2 x studios @ 17m2 each, 2 x 1 bed flats @ 27m2 each
Second floor - 2 x 1 bed flats @ 29m2 each
Second/third floors - 2 x 1 bed flats @ 28m2 each
Total Accommodation - 13 units – total floor area = 325m2

The properties are being offered for short term overnight/ weekend breaks via the borrowers web site pier12.co.uk and booking.com.

The properties have been valued at £830,000 by the registered valuer and CrowdProperty have agreed to lend £622,500 on a part retained, part serviced bridging loan. CrowdProperty will then credit the lenders accounts monthly with due interest. The amount we are lending is gross and equates to 75% LTV. From this gross figure we are retaining 6 months-worth of interest from this amount. We will be invoicing the borrower monthly to recover the other 50%. With the gross LTV of 75% including the retained interest, the capital element of the loan represents 69.16% LTV.

The maximum loan term is 12 months with interest paid monthly to the lenders at 0.67% (8% equivalent per annum). The minimum loan term is 6 months.
This project will be 1st Charge Secured as registered with the Land Registry.

The borrowers plan is to build up the business enabling him to refinance onto a long term commercial mortgage. He also plans to split the properties into 2 separate titles, return to planning to seek a change of use on No. 26 to C3 residential so that he can, if necessary let this property on traditional ASTs; improving flexibility when he comes to re finance onto traditional Buy to Let Mortgage

We are targeting a start date of 28th June 2019.

exit strategy

With 12 months operation the owners expect to be able to prove that the strategy works enabling them to refinance onto a long term commercial mortgage. With the additional benefit of residential C3 planning on No.26 and splitting the title so that the properties could be individually mortgaged the borrowers are providing flexibility to fall back to traditional forms of investment if necessary i.e. HMO where a greater number of refinance options are available. The aim is to exit this Bridge as early as possible.

indicated return for your pledge

interest

total

min. loan (6 months)

£200

£5,200

12 month loan

£600

£5,600

CrowdProperty Comments


Now the development loan has ended it made sense for the borrowers to move onto our Serviced Bridging Loan product. The 12 month loan will provide time for the borrowers to build up the business before moving onto a long term commercial mortgage. He will also split the title of the 2 properties, seek a change of use to residential on No. 26 so that their is more flexibility on the re finance at exit.

The

CrowdProperty

Shield

Rigorous due diligence
1st Charge Security
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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.

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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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