Millward Hall, Salisbury Street, Leek, Staffordshire ST13 5EE is a market town near The Peak District National Park. Leek is an attractive town with Victorian architecture, museums and markets. Leek is located approximately 10 miles North East of Stoke-on-Trent and has a population of 20,768. The M6 is situated approximately 17 miles to the west.
Companies located nearby include, JCB, Capita Finance, and Ornua whilst Alton Towers theme park is approximately 10 miles away. Located just to the west of Leek town centre, Millward Hall is close to local shopping including Post Office, Building Society branches and the Co- Operative supermarket. Town Centre employers include The Royal Mail Group, Leek Building Society, Leek Town Council and St. Mary’s Catholic Primary School.
The property is already owned by the borrower and he has secured planning through Staffordshire Moorlands District Council - ref. SMD/2017/0460 to convert Millward Hall into 16 x 2 bedroom apartments. The conversion will include an extension on the North side of the building and the construction of 2 new rooftop floors to create a 4 storey building.
The RICS valuation of the existing property with the benefit of planning is £332,000.
RICS estimate of GDV £1,680,000.
The estimated cost of works for this project is approximately £870,000. After adding purchase price, fees, interest and contingencies total costs are estimated at £1,371,000 giving an out turn estimate on profit of £309,000.
CrowdProperty has agreed to lend the borrower £940,000 over an 18 months (max) loan term. The loan commenced on 24th September 2018 and we had some lenders withdraw their pledges at the last minute. Given the previously agreed fund release pattern we completed the Agreement in the knowledge the small shortfall would be filled.
On completion of the loan agreement, day 1 CrowdProperty released £232,000 representing 70% LTV of the current RICS valuation.
The remainder of the loan will be released in phases based on our Independent Monitoring Surveyors inspection and verification of works completed at that time.
On completion the loan including rolled up interest will represent 64.35% LTV
The loan is secured by means of a Land Registry registered 1st charge on the property.
Upon completion of the building works the borrower will sell the individual apartments
Ray graduated from Salford University (1st Class) Electrical and Electronic Engineering. During Rays’ professional career he began investing in property and now has a personal portfolio of 20 properties and over 30 years of experience. In 2013 Ray, along with his business partner set up a property development company, Charles Wainwright Developments Limited (company number: 08493102).
As of 2013 Charles Wainwright Developments Limited has developed 5 properties including:
A new development known as The Willows at Stoke on Trent.
This was a new build development that was purchased in July 2013 for £120,000. Development costs were in the region of £500,000.
The properties were valued on 11th July 2016 by Davis Coffer Lyons with gross development values up to £1,400,000. The development comprises 4 detached properties and three bungalows.
Juniper House, Stoke on Trent; refurbishment of existing property to provide 7 bed property.-
Situated at Clewlow Place, Stoke on Trent, ST3 5DA Juniper House is a large detached house set in its own grounds in a quiet residential Cul-de-Sac.
The property was purchased in November 2016 for £200,000. Following conversion works the borrower refinanced and now holds the property for supported living.
The company also has a residential development comprising 6 X 1 bed flats and own their own offices.
6 month loan
18 month loan
Ray’s vision and strategy for this development- highlighted through his submission of detailed supporting information - is what particularly brought our attention to this project. The CGI's were provided by Croft Architecture Limited: http://www.croftarchitecture.com/
Having purchased this disused building in 2017 he has managed to secure an innovative planning consent doubling the size of the development and is now ready to embark on the conversion works.
Our in-house property experts thoroughly assess each project proposal. We scrutinise the developer and any of their partners’ track records. Only the most promising projects, by the most experienced developers, will receive an informal offer. CrowdProperty will only work up to certain loan-to-value and loan-to-cost percentages, and each project must meet our 25% profit-on-cost criteria. For more information please view our risk statement.
A ‘1st legal charge’ gives CrowdProperty the legal right to take ownership of a property in the unlikely event that a property professional defaults on their loan repayments. 1st legal change is the highest level of security and gives CrowdProperty all the rights that a mortgage company holds. We have 1st legal charge on every project listed on our platform. This is an essential, non-negotiable criterion to ensure your funds are safe.
Our in-house experts perform strict and rigorous checks on all projects proposed. With almost 100 years’ experience in the industry, we work in partnership with our borrowers. We work in partnership with our borrowers until project completion. If a borrower were to default, CrowdProperty’s 1st legal charge allows us to take ownership of the project. Here we would utilise industry experience to ensure the most suitable exit strategy was followed.