Fully Funded

87 Middle Hillgate, Stockport, SK1 3EH

Developer: John Macaulay

loan amount

£100,000

interest paid*

8%

funds pledged

£100,000

number of investors

39

% of target pledged

Fully Funded

project type

Commercial to residential conversion

loan term

up to 12 months

security

1st charge

project phasing

1 of 1

floor area

1620 sq.ft.

purchase price/value

£112,500

cost of work

£100,000

loan to value

40%

est. sales value (gdv)**

£190,000

owed at exit to gdv***

58%

strategy & vision

The Borrower owns the property and has already commenced works on this project.

The property occupies a corner plot and is a traditional end-terraced building dating back to the 1900’s. The property is 2 storey plus a cellar and is of brick construction beneath a pitched slated roof. Planning consent has been granted by Stockport Metropolitan Borough Council ref: (DC/069893) for a change of use from retail to residential (use class order C3) to convert the property into a 4 x bedroom HMO and a self-contained 1 bed ground floor apartment. Conversion works have commenced and will include the replacement of a dilapidated single storey extension and the general upgrade of the property to include rewire, new central heating, re-plaster, new kitchens and bathrooms. Works to date have included general strip out, the demolition of a dilapidated extension and scaffolding erected.

The Borrower intends to let the property, refinance onto a long term mortgage and hold.

LOCATION AND DESCRIPTION

Stockport is a large town within Greater Manchester and the largest settlement within the Metropolitan Borough of Stockport with a population of 290,557 and a direct workforce of 181,307. The town is situated approximately 7 miles (11 km) South East of Manchester City Centre and centred on the banks of River Mersey. The town benefits from being close to major road and rail networks including M60 (J 27), M56, M6 and A6. The mainline railway station is located 0.5 miles from the property with regular trains into Manchester (5 mins) and direct links to Manchester International Airport, Central London, Sheffield, Liverpool and Birmingham.

The property opens out onto Middle Hillgate Street which comprises a mix of traditionally constructed houses typical of 19th Century British architecture together with commercial and communal buildings including:

The Stockport Museum; Stockport College; Abyss Aquatic Aquarium and Staircase House Museum.
Companies such as Lamborghini, Toyota, Maserati and Nissan also have their showrooms located close by.

The property’s location is also convenient to the Sun and Castle Bus Stop which is across the road with regular buses into the town centre and Manchester.

SITE AREA/FLOOR AREA

Total site area: 0.015 Hectares (0.037 Acres)
Total GIA floor area: 1,620 sq ft (150.46 sq m)

Ground Floor: 560 sq ft (52 sq m) 1 x bedroom and 1 self contained apartment
First Floor: 582 sq ft (54.09 sq m) 3 x bedrooms
Basement: 478 sq ft (44.37 sq m)

OVERVIEW OF FINANCIALS

The Borrower purchased the property for £112,500 and to date has spent £120,000 in total to include purchasing costs and initial strip out works. The borrower has already commenced works and scaffolding for roof repairs has been erected.

CrowdProperty has agreed to lend the borrower £100,000 in a single raise. £40,000 will be drawn by the borrower on day 1 based on RICS valuation of £100,000. This represents 40.0% LTV. The estimated cost of works is £100,000 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 57.9% including rolled up interest.

The loan term will be 12 months and we are targeting a start date of 2nd November. Once the works have completed the borrower intends to let the rooms individually, refinance and hold. Monthly rents for the rooms are targeted to be in the order of £500 about £50 per month above the average currently advertised in the area. The rent for the self contained flat is also targeted at £500 per month.

As always CrowdProperty will have first legal charge documented at the Land Registry over the property.

exit strategy

The borrower intends to refinance into a long term commercial mortgage and hold. The rooms will be let on the basis of standard assured short-hold tenancy agreements. Comparable room rents for Stockport are at £500 per room per month. 1 bed apartment are also being let at £500 per month.

the borrower
& project team

The Borrower will be The Alchemy Agency (co. ref. no. 07456715) 100% owned by John Macaulay.

John has a Masters in Business (MBA) from Manchester Business School. He has been in the food industry for 15 years where he worked in several operational and project management roles. He was previously a Senior Manager in large food businesses managing over 200 people and projects to the tune of £2 million. He has been a buy-to-let Landlord in South Manchester since 1999 and has built a property portfolio which includes:

Supported living accommodation in Huddersfield (£0.5 million)
Managing student HMO’S
Serviced student accommodation units in South Manchester
New build family home project

John has appointed Russel Crabtree of Home Building Company as the contractor on this project.

MAIN PROJECT CONSULTANT

Russel Crabtree is the main contractor on this project. Russel is a Builder with 25 years experience in various aspects of property development.

He has been a full-time developer for the past 4 years involved in commercial conversions, extensions and supported living through his company, Home Building Company. Russel set up Home Building Company Ltd in 2013 https://homebuildingcompany.co.uk/

Some of his recent projects include:

Warren House Stockport (redevelopment from commercial to mixed use property
270-276 Wellington Road South Stockport (11 x 1 bedroom apartments and care worker facilities)
193 Mottram Road Hyde (8 x 1 bedroom apartments and care worker facilities)
King St Dukinfield ( 10 x 1 bedroom apartments)
Lumn Road Hyde (full refurbishment of 3 x bedroom mid terrace house)

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

CrowdProperty Comments


Whilst this opportunity is smaller than our usual raises John has a proven track record with a sound strategy for this project. Furthermore the LTV is lower than our usual offerings reducing the risk profile. The rent profile is proven and re financing onto a long term commercial mortgage will more than cover the loan/interest owed. The property is well located with the Manchester property market showing a 6.8% growth in values in the year to Aug 2018 (Hometrack). Zoopla records a 3% rise in values in the last 12 months in Stockport.

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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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