Liberal House, Bell Lane, Studley, Nr. Redditch B80 7LR comprises a traditionally built 2 storey detached commercial office property. Studley is a satellite village of Redditch comprising local shops, pubs, schools and a hospital. This bustling village is located 5 miles south of the M42. Redditch town centre is approximately 4 miles. Main employers of Redditch include AT+T, The Law Society and GKN. The population of Redditch is 65,000.
Studley has a population of just 6,000 people and provides excellent links and local amenities.
Planning has been granted to convert Liberal House into 2 X 3 bed apartments from Stratford BC planning ref. 16/01042. The borrower will implement the planning and then turn the property into 2 x 5 bed HMOs under PD rights.
The RICS valuation of existing property is £175,000, the price which the borrower is purchasing the property for.
RICS estimate of converted property with works completed (GDV) is £500,000.
CrowdProperty has agreed to lend the borrower £297,000 towards the purchase and conversion. Initially £122,500 will be lent towards the purchase with the remainder being drawn down in tranches on verification of our IMS reports. LTV 70% > 65.34% at completion of works and including rolled up interest.
The borrower has exchanged contracts. The loan term is a max of 15 months and will commence on 20th August 2018.
1st charge security will be offered.
|Minimum 6 month Loan||Full 15 month loan period|
On completion of the works the borrower will refinance and hold
Paul has over 30 years experience at Bristol City Council as an Energy Service Manager having obtained a degree in Building Environmental Engineering.
Together with his wife Clare they formed Infinite Development Group Ltd (company number: 10497594) with the ambition to convert unloved commercial buildings and convert them into modern living space.
They moved into Property Buy to Lets in 2007 when they purchased 3 x 2 bedroom flats which they let on standard ASTs.
In 2014 they converted their family home in Bickley, Bristol into a 5 bed HMO, including installation of fire doors and smoke/heat alarms. This is now managed by local agents Piper Property.
Masefields a local practice of architects and surveyors based in Studley have been appointed to act to deliver this project. www.masefields.co.uk
Masefields are currently reviewing the shortlisted contractors tenders prior to recommending an appointment.
This is an excellent opportunity to convert a disused commercial property in a sustainable manner to meet the current housing needs.
The conversion of the property into 2 self contained flats will be completed within a 9-12 month period allowing time for Paul to refinance and redeem his loan to The Crowd.
* 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