The vacant site is situated off Hazelwood lane, Kettering immediately to the west of Kettering town centre and within a few minutes’ walk of the Central Business District. Kettering railway station is 5 minutes walk to the south. The vacant site (approximately 0.13 acres) has been used as a car park, having previoulsy been occupied by Victorian Houses within a predominantly residential area.
Planning permission has been garnted (REF: KET/2017/0279) for the development of a 3 storey detached building to comprise 6 x 2 bedroom flats. Each flat will be approximately 659sf. The building will be a total of 4650sf including communal areas.
The borrowers for this development is Duncan Forster. Duncan has over 40 years’ experience as a contractor and developer and in the last few years he has delivered numerous projects including two Grade 2 Listed barn conversions in West Wycombe and Kettering (contract sums £650000 and £890,000), and a pair of 5-bedroom semi-detached houses in St Albans (contract sum £800,000).
Duncan has employed David Moore as Lead Consultant to assist in the delivery and sale of the completed project.. David is a chartered Surveyor and has been in the property industry for over 40 years. He has significant experience as a Property Developer and Investor including projects involving residential developments (up to 50 units), HMOs, retail warehouses and multi let offices.
CrowdProperty has agreed to lend the owner £250,000 in return for 1st charge security. As the borrower owns the site, the money will be used towards the delivery of the development. Construction is expected to take 40 weeks and we have agreed a maximum loan term of 15 months. The site with planning is currently valued by the RICS valuer at £160,000. The RICS valuer believes the GDV of the completed project to be £750,000, presenting a LTV of at exit of 33.3% (estimated). Upon completion of the development the borrower will sell the flats.
|Minimum 6 month Loan||Full 15 month loan period|
The completed units will be sold
40 years in development and construction
This is a perfect project for CrowdProperty. The Borrower, who is an experienced building contractor has teamed up with an experienced project manager for this straight forward new build project. The borrower already owns the site with no debt on it, and will be using his own money to start the build before using the funds raised through the crowd. This means the loan to value will be a low 33.3%. With the first charge in place held by CrowdProperty on behalf of the lenders, we feel that this is a very safe development for our lenders.
* 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