Fully Funded

Chatham House, 44-46 Wembdon Rise, Bridgwater, Somerset, TA6 7QZ

Developer: Bruce Fletcher

loan amount

£867,000

interest paid*

8%

funds pledged

£865,050

number of investors

186

% of target pledged

Fully Funded

project type

Conversion to HMO

loan term

up to 12 months

security

1st charge

project phasing

1 of 1

floor area

9506.6 sq.ft.

purchase price/value

£950,000

cost of work

£200,000

loan to value

70.21%

est. sales value (gdv)**

£1,400,000

owed at exit to gdv***

68%

strategy & vision

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.

exit strategy

On completion of the conversion works the borrower will rent out the individual rooms, refinance and hold.

the borrower
& project team

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

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

CrowdProperty Comments


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.

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*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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