120 Warwick Road, Banbury OX16 2AN comprises a 6 room bed and breakfast property together with an adjoining studio flat and separate 1 bed flat. Banbury town centre is approximately 0.5 mile to the south-east fronting a busy arterial route in a mixed residential and commercial area.
Banbury is an idyllic market town adjacent to the River Cherwell in Oxfordshire with good retail and commercial areas. Access to M40 J11 is approximately 1 mile to the east.
The town has a population of 48,000 and one of the lowest unemployment rates in GB at 0.7%. The largest employers include Jacob Douwe Egberts (food manufacturers) and Prodrive (motor industry).
Planning has been granted to convert the property into a 9 bed HMO and 2 x 1 bed apartments - Cherwell DC ref. 17/01797/F
RICS valuation of existing property (with vacant possession) is £650,000 although he is buying the property for £540,000.
RICS estimate of converted property with works completed (GDV) is £795,000.
CrowdProperty has agreed to lend the borrower £513,000 towards the purchase and conversion. Initially, £378,000 will be lent towards the purchase with the remainder being drawn down in stages and on verification of our IMS reports. LTV will be 70% < 70.9% including rolled up interest.
The loan term is a max of 12 months commencing 12th July 2018.
1st charge security will be offered.
The exit will be to refinance onto a long term commercial mortgage and hold.
|Minimum 6 month Loan||Full 12 month loan period|
Refinance onto a commercial mortgage and hold
David Granat the borrower is buying the property in his company DCG Property Limited registered in Sept 2013 reg. no. 08673859.
David has been investing and developing the property since 2013 and has developed and refurbished 13 projects to date.
Prior to this David spent 8 years in the automotive industry working for both the BMW Group and Jaguar Land Rover where he led projects and cost analysis tasks.
David has a degree in Electrical Engineering is qualified in Prince 2 Project Management and holds a Six Sigma qualification.
He is now a full-time property investor and developer.
This is an ideal opportunity to convert a tired bed and breakfast into a multi tenanted HMO. With fire doors, emergency lighting and existing bathrooms in place the borrower will only be looking to upgrade the communal areas, redecorate internally and refurnish.
Some improvements to the exterior will be required to enhance the car parking but structural work will be to a minimum.
David is clear on his exit strategy and by refinancing and holding he will be adding to his growing property portfolio.
* 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