Fully Funded

120 Warwick Road, Banbury, OX16 2AN

Developer: David Granat

loan amount

£513,000

interest paid*

8%

funds pledged

£513,000

number of investors

92

% of target pledged

Fully Funded

project type

Conversion to HMO

loan term

up to 12 months

security

1st charge

project phasing

-

floor area

-

purchase price/value

£540,000

cost of work

£170,000

loan to value

58.15%

est. sales value (gdv)**

£795,000

owed at exit to gdv***

71%

strategy & vision

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.

exit strategy

Refinance onto a commercial mortgage and hold

the borrower
& project team

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.

indicated return for your pledge
interest
total
6 month loan
£200
£5,200
18 month loan
£600
£5,600

CrowdProperty Comments


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.

The

CrowdProperty

Shield

Rigorous due diligence
1st Charge Security
Unparalleled expertise
more
*Please see full risk warning
**Estimated Sales Value is more formally referred to as GDV - Gross Development Value
***Owed at exit to GDV is calculated as the total capital + any planned loan interest against the RICS GDV for the project. These figures do include subsequences on projects funding development costs during the course of the project.

Your capital is at risk and you may lose all you lend. See our full risk warning for more information

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