ABOUT THE PROJECT
Chatham House, Wembdon Rise, Bridgwater, Somerset, TA6 7AQ is a large Victorian stone-built property 0.5 mile due west of the town centre. The property is predominantly 2 storey but includes 3 attached single storey extensions and includes off-road parking to accommodate 22 cars. Planning (51/17/00030) has been granted by Sedgemoor District Council for the conversion from Care Home to provide a 24 room House of Multiple Occupation (HMO). There are no structural changes planned during the works. The borrower intends to rent the rooms out on standard Assured Shorthold Tenancy Agreements, refinance and hold the property.
LOCATION AND DESCRIPTION
Bridgwater is the district town of Sedgemoor District Council and is one of UK’s key industrial towns. The town is situated on the A38/A39 intersection and located adjacent to two motorway interchanges of the M5 (J23 +J24) connecting Bristol to Exeter and beyond. The town also benefits from main line railway station with direct trains to London, Paddington to Penzance. There is a port facility at Dunball. The property is located in the heart of the old quarter of Wembdon village, approximately 3 minutes drive/13 minutes walk to the town centre. Wembdon is a predominantly residential area of Bridgwater incorporating local schools, neighbourhood shops and other amenities. The location is convenient for the Hinkley Point Power Station project which is the largest Power Station project in Europe and currently employs 6000 construction workers and due to be opened in 2027.
SITE AREA/FLOOR AREA
Total site area: 0.165 Hectares (0.21 Acres)
Total GIA floor area: 9,506.6 sq ft (883.1 sq m)
A total of 24 bedrooms
22 car parking spaces
Ground floor: bedrooms 1-4, 21-24 (8 bedrooms; 4 ensuite)
First floor: bedroom 5-20 ( 16 rooms; all ensuite)
The property benefits from rear vehicular access.
OVERVIEW OF FINANCIALS
This opportunity is a refinance as the borrower purchased the property earlier in 2018. CrowdProperty has agreed to lend the borrower £867,000 in a single raise. £667,000 will be drawn by the borrower on day 1 based on RICS valuation of £950,000. This represents 70% LTV. The estimated cost of works is £200,000 and the remainder of the loan will be drawn in stages subject to Independent Monitoring Surveyors reports. The out turn LTV once works have been completed will be 68.12% including rolled up interest.
The loan term will be 12 months Once the works have completed the borrower intends to let the rooms individually, refinance and hold.
As always CrowdProperty will have first legal charge documented at the Land Registry over the property.
On completion of the conversion works the borrower will rent out the individual rooms, refinance and hold.
Bruce has a B. Eng (Hons) degree in Civil Engineering and Building Technology. He has been involved in the construction industry for 40 years with practical experience in over 20 countries including Thailand, USA, Malaysia and the UK. Bruce has previously executed large-scale projects to the tune of 25 million US dollars including, water treatment projects in Vietnam, Singapore and Malaysia.
Bruce’s experience in the British property market commenced in 1982. He has been a Landlord since 1987 when he purchased his 1st single let property.
Significant projects during this time include:
3 bedroom semi-detached house, London (1998-1999)
3 x 3 bedroom barn conversion (2002)
3 bedroom renovation of a cottage (2011)
3 bedroom barn conversion (2012)
Chatham House is held in a SPV company called Chatham House Ltd (Co. Ref. No. 11227647) in which Bruce and his wife, Alison are directors. They have been full-time professional Landlords since 2011 having moved into the HMO market 12 years ago. In addition to Chatham House, Bruce currently owns 11 other rental properties
6 month loan
18 month loan
The major selling point for Chatham House is its target market namely the Hinkley Point (HPO) project, only 25 minutes away. The HPO project is reported to be one of the largest power station projects in Europe currently employing up to 6000 construction and ancilliary workers. Chatham House will provide a 24 bedroom HMO together with 22 on site car parking spaces. Bruce has 12 years experience in HMO conversions and currently has 11 other rental properties that he oversees. Works have already commenced and are estimated to be completed by January 2019. Bruce will then let the rooms, refinance to payback The Crowd and hold.
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.