Insurance House and John Garth House, Lye , Stourbridge , DY9 7AQ

Michael Kalisperas

Finance Required
Development funding
Funds Pledged
£347,000
% of Target Pledged
100%
Interest paid*
8%
Size (sq.ft)
3237
Est. Sales Value (GDV)†
£700,000
Loan Amount
£347,000
Loan to value (LTV)
70% reducing to 49.5% at the end of the build.
Loan term
Up to 15 months
Strategy & Vision for the Development

The property is located in the Metropolitan Borough of Dudley and was purchased by prospective borrower recently. It comprises 2 detached part single storey and part two storey former office buildings, together with private car parking. Planning permission has been granted to convert the buildings into residential (class 3) and the borrower intends to create up to 13 HMO units and split the properties into 3 distinct areas. (Planning reference: P17/0754).

RICS valuation of existing properties: £210,000
RICS view on GDV of completed units: £700,000

CrowdProperty has agreed to lend £347,000 (£147,000 on completion of loan agreement and £200,000 towards cost of 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.

Indicated return for £1,000 pledge
  Minimum 6 month Loan Full 15 month loan period
Pledge £1,000.00 £1,000.00
Interest £40.00 £100.00
Total repaid £1040 £1100
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

The exit strategy is to refinance and hold the property

Projected Costs
Purchase Price
£210,000
Total Cost of Project
£545,000
Projected Returns
Projected Profit
£155,000
The Developer

The borrower will be ViewGreen Homes Ltd. and director Michael Kalisperas. Michael has a background in 3D visuals and design work having worked for the BBC. His property experience includes:

Worcester HMO: Refurb of current 5 bed HMO in Worcester in 2016. Light refurb of kitchen, bedrooms and bathrooms. 

Barnards Green Road :The refurbishment of a Fish Bar in Malvern, at the costs of 100k which he owns in JV. This was a total refurb back to brick and involved extensive modernisation.

180 Markhouse Rd. London: Complete refurbishment of his 1st house in London followed by letting out the additional rooms once complete.

House of disability: Refurbishment of existing house to accommodate family member – project cost £300000

CrowdProperty Comments

This is a classic commercial to residential conversion project. The developer will be adding significant value to these buildings by converting them into three large apartments which will be used as Houses of Multiple Occupation to maximise the rental income and hence the commercial valuation. The developer intends to hold these high rental yield properties and will repay the crowd by refinancing them with a commercial mortgage. As the end Loan to Value will only by 49.5% there is plenty of equity to cover the capital and interest payment to the Crowd. We are delighted to give this project he 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

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