This launch is the 4th and final phase of a Loan Facility Agreement totaling £1,800,000 where we are raising £300,000 having previously raised £700,000 in phase 1, £400,000 in phase 2 and £400,000 in phase 3.
The agreed loan term is 18 months (max) from 8th January 2019 so the phase 4 loan will be for approx. 8 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 £615,000 which represented an Initial LTV of 67.4%, The LTV will fall to 59.8% (including rolled up interest) once works have been completed. Phase 4 monies will be utilised to complete the conversion works and be released on the verification of our Independent Monitoring Surveyors inspections.
The borrowers, KHP Group of Companies are continuing to make progress with the conversion works on site and to date have completed the following:-
- Phase 2 and 3 structural alterations and demolition continues
- Upper floor/terrace construction to new extension
- Partitioning studwork progressing to phase 2 and 3
- Plaster skim complete to phase 1
- Decoration continuing through units 5-9
- Kitchens and bathrooms progressed in units 2-9
- Flooring progressed to units 2-4
- M+E 1st fix progressing to units 10-17
- M+E 2nd fix nearing completion units 1-9
- External patio, decking and fencing to rear of phase 1 units
- All services now connected to public system
Works planned in the forthcoming months include:
- Completion of first floor of extension and roof terrace
- Completion of units 5-9 fit out
- Completion of stair well alterations to stair 1 and stair 2 for phase 1
- Completion of external hard landscaping for phase 1.
- Completion of remedial works to existing elevations for phase 1.
- Progression of fit out to units 10-17
NB* additional information:
- Funds validated by IMS to date totals £513,041
- Draw down validation to end of October 2019 is a further £227,713
- Programme of works remains on schedule with show flat unit 1 opened on 10th August
- Completion of all works is 7th February 2020
- Completion of Phase 1 works (units 1-9) is expected to complete by 1st November 2019
- The borrowers held a public open event and since then ‘off plan’ sales have been agreed received for 5 units including the show flat
ABOUT THE PROJECT
The property is a part 2, part 3 storey former Care Home (St Lawrence Care Home) dating back to the 1970’s. The property is located approx. 4 mins (0.8 miles) north west of Crediton town centre. Crediton is located 9 miles west of Exeter in Devon with a population of 8,077 and a direct workforce of approx. 4,802. Planning (18/00091/FUL) was granted for the conversion of the property to provide 22 residential flats and 37 car spaces. The borrower spent £104,000 to secure planning and completed the purchase of the property in early January 2019. The Borrower, KHP Group of Companies is well known to CrowdProperty and currently has 3 projects in play, having previously repaid on another one in 2017.
LOCATION AND DESCRIPTION
Crediton is situated in Mid Devon about 9 miles North West of Exeter. Access to the M5, J30 + 31 at Exeter is via A377. The town is situated in the Vale of Creedy and is home to the Creedy Lakes. The town benefits from a railway station approx. 1 mile from the property with regular trains into Exeter where direct connections to Bristol and London can be boarded. With a population of 8,022, Crediton serves as a commuter suburb to Exeter.
The property is situated just North West of the town centre within a predominantly residential area and opposite Crediton Police Station. The property is a mix of single, 2 and 3 storey attached buildings constructed of cavity brick and blockwork elevations under pitched roofs overlain with interlocking concrete tiles.
Local amenities include:
Shobrooke Park 1.6 miles
Lords Meadow Leisure Centre 1.2 miles
Crediton hospital 0.4 miles
Queen Elizabeth School 0.2 miles
SITE AREA/FLOOR AREA
Total site area: 0.98 acres
Total GIA floor area: 17, 728 sq ft (1,647 sq m)
A total of 22 residential units providing 7 x 1 bedroom flats, 14 x 2 bedroom flats and 1 x 3 bedroom flat as follows:
Ground Floor 5,823 sq ft (541 sq m) apartments 1 - 9
First Floor 5,984 sq ft (556 sq m) apartments 10 - 18
Second Floor 476 sq ft (44.37 sq m) apartments 19 - 22
Sell part and let and refinance part
min. loan (6 months)
8 month loan
The practical completion of works as signed in the JCT contract is agreed as 7th February 2020 with parts of the building to be completed in phases from August 2019. The project is being executed to a high standard and the borrower has had good reaction to the initial marketing with ‘off plan’ sales agreed for 5 units including the show flat.
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