Croft Cottage, Martley Road, Lower Broadheath, Worcester WR2 6QG comprises an older style single 2 storey 3 bed property in poor condition. The borrower who lives next door intends to demolish the property and construct a new detached 4 bedroom family home.
He then intends to sell his existing house and live in the newly created property. He is buying the plot for £170,000 and through his architect will submit a planning application to Malvern Hills District Council for a new 4 bed 2 storey detached property.
Lower Broadheath forms part of the larger village of Broadheath and is situated approximately 7 miles north west of Worcester City Centre. Broadheath is famous for being the birthplace of Edward Elgar and a museum at his former home is situated in the heart of the village.
The village supports a parish hall, shop, post office, and village green. There is also a primary school with ~150 pupils. The village has a population of around 1,730.
The RICS valuer values the site at £170,000. Initial architects plans indicate a house of 2,108sf net internal, and assuming planning, the out turn value would be £525,000.
CrowdProperty have agreed to lend the developer £210,000 in two phases. £60,000 phase 1 to assist in the purchase of the property and then £150,000 towards the building of the new property. The phase 2 money will be released in phases subject to the verification of our Independent Monitoring Surveyor.
The Borrower will use personal money to fund the remainder of the construction and purchase costs. They are looking to The Crowd to back this scheme at an interest rate of 8% for a period of up to 15 months. The length of the loan is a minimum of 6 months and a maximum of 15 months.
|Minimum 6 month Loan||Full 15 month loan period|
Sale of existing house
Les Jenkins is the CEO of local engineering company Centinel Group. He has undertaken refurbishments and extensions on other properties. He intends to self build and will employ network of trades he has historical relationships with.
He has lived in Worcester his whole life and has an excellent knowledge of the area. He has good experience in project managing and cost control analysis. Living next door to the plot with his family will allow him to have daily overview of the project and its progress.
We are delighted to be funding this new build project which has a secured exit strategy of a straight forward refinance.
The Loan To Value (LTV) is very low which should give more confidence to the lenders because it means that the borrower is using a substantial amount of their own money in this project.
We also like the fact that the Borrower has done several of these projects before and lives next door to the site, so he is very well placed to keep a close eye on the development using skilled trades that he has used on previous projects.
We are so confident in this project that we have 100% underwritten it, which means that the loan is guaranteed to start on 8th August. We are happy to give this project the 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