Fully Funded

Land at Jubilee Gardens, Westbury, Shropshire, SY5 9EQ

Please note, for this project, pledges will be limited to a maximum of £2500 until 10.05am. After 10.05am, you can create pledges larger than £2500 or increase the size of your pre-existing pledge. This is subject to the project amount remaining which needs to be raised.

loan amount

£350,000

interest paid*

8%

funds pledged

£350,000

number of investors

113

% of target pledged

Fully Funded

project type

New development

loan term

up to 18 months

security

1st charge

project phasing

1 of 2

floor area

5770 sq.ft.

purchase price/value

£400,000

cost of work

£800,000

loan to value

70%

est. sales value (gdv)**

£1,420,000

owed at exit to gdv***

61%

strategy & vision

The land at Jubilee Gardens, Westbury, Shropshire SY5 9EQ is situated 8 miles west of Shrewsbury and close to the Welsh border. The village has a population of 1,352 (2011 census). Road connections to Shrewsbury are via B4386. The village provides a number of local amenities including a Primary School, Post Office, Medical Practice, The Lion Public House and St Marys Church. The school has a pupil size of about 40 (50% capacity) and Shropshire are to merge 3 local schools including Westbury into 1. It is not clear if the Westbury school will be retained or not. Residents are in the main commuters into Shrewsbury.

Shrewsbury is the county town of Shropshire and has a largely unspoilt medieval street plan and over 660 listed buildings, including several examples of Tudor properties from the 15th and 16th centuries. The population of Shrewsbury is 71,000 and is connected to the motorway network via the M54 and has direct trains to London via the west coast main line.

The opportunity comprises a development site with outline planning permission (Application no. 14/01469/OUT) with reserved matters for each unit 16/02448, 16/02449, 16/02450 and 16/0245) now confirmed for the construction of four detached bungalows. The site is currently laid to grass and a post and barbed wire fence separates it from the pastureland to the west. There is a brick wall to the south side and shrubs separating the land from the new development on the east side.

The proposed development will provide 4 x three and four bedroom bungalows set in their own individual plots, accessed from a single estate road leading from the adopted lane. Each unit will include a large sitting/dining room, kitchen/living room, utility, bathroom and three/four bedrooms, one of which will have an en suite shower room. The external elevations will be constructed of a mix of brick, render and stonewalling, beneath a pitched and tiled roof. The units will incorporate double glazed UPVC windows and underfloor heating throughout. Plot 3 will incorporate an integral garage.

The bungalows will have the following approximate floor areas:-

Unit 1 – 118m2/1270ft2
Unit 2 – 118m2/1270ft2
Unit 3 – 150m2/1615ft2
Unit 4 – 150m2/1615ft2

Total GIA floor area of 526m2/ 5,770ft2
Total site area: 1 Acre

The borrower has exchanged contracts on the purchase of the site and commenced works on 19th November. He is due to complete the purchase on or before 21st December 2018. The purchase price is £400,000 and this has been verified by RICS valuer. RICS estimate of GDV of completed development is £1,420,000. Build costs are estimated at £850,000 including consultants fees.


CrowdProperty has agreed to lend £750,000 towards this development to be raised over 2 phases. The 1st phase raise will be £350,000 with £280,000 being provided to the borrower day 1 representing 70% loan to value. The 2nd phase raise will take place towards the end of January 2019. All remaining funds will be held by us and drawn on Independent Monitoring Surveyor’s verification.

CrowdProperty will have the first charge as registered at The Land Registry to protect lenders in the event of default. Estimated GDV of £1,420,000 at completion of the works will equate to 60.7% LTV.

Loan term Is a maximum of 18 months; minimum of 6 months. The exit strategy for the developer is to build out and sell on completion of the works. The loan is therefore likely to be returned to the lenders in tranches and as and when sales of the completed bungalows have been completed.

The loan is expected to commence on or before 21st December 2018.

exit strategy

Build out and Sell

indicated return for your pledge
interest
total
min. loan (6 months)
£200
£5,200
18 month loan
£600
£5,600

CrowdProperty Comments


The borrower has a wealth of experience in residential development and with 100 units now under his control in and around Shrewsbury has a very good understanding of the local market. He has been involved in the Shrewsbury residential property market for more than 25 years and is well connected having excellent working relationships with Stakeholders and Consultants.

The

CrowdProperty

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Rigorous due diligence
1st Charge Security
Unparalleled expertise
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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. No FSCS protection. Past performance is not an indicator of future results. Tax treatment will depend on individual circumstances and may be subject to change. See our full risk warning.

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