ABOUT THE PROJECT
The site is located on the Colchester Road midway between the villages of Thorpe Green and Weeley and approx. 1.3 miles from the village of Thorpe Le Soken. The plot is approx. 0.52 acres surrounded by fields with planning permission for a 6 bedroom detached house with four reception rooms. The site is situated within the Tendring District Council and benefits from planning consent ref: (15/00976).
The construction works have commenced with ground works, foundations and ground floor slab constructed. The Borrower Coleman and Clarke (Co. Reg. No. 05485008) purchased the site in 2016 and intends to sell the completed development.
RICS valuation of the property in its existing condition is £250,000
RICS estimate of completed development (GDV) is £720,000
CrowdProperty has agreed to lend the borrower £265,000 in a single raise
18 months (max) loan term
LOCATION AND DESCRIPTION
Thorpe Le Soken is a village situated in the Tendring district approx 12 miles east of Colchester. The B1033 links the village with Frinton-on-Sea and Colchester, whilst the B1414 provides good connection to Clacton-on-Sea and Harwich. Both roads provide good access to the A120 and A133. The village benefits from the Thorpe Le Soken railway station with hourly trains into Colchester and London Liverpool Street approx. 1 hr 40 mins away. The village also benefits from other amenities nearby including:
- Rolph Church of England (C of E) primary school 1.3 miles
- Thorpe Campus of Tendring Technology College (Years 7,8 and 9) 1.5 miles
- Thorpe Le Soken sports and social club 1.5 miles
- Homestead Lake Country Park 1.2 miles
- Weeley bridge holiday Park 1.7 miles
The site, irregular in shape and totalling 0.52 acres has direct access from Colchester Road. The borrower has commenced works with ground works, foundations, floor slab and drainage complete. The development when completed will provide a 6 bedroom, 4 reception room house with total GIA floor area of 2,873 sq ft (267 sq m)
Ground floor 1506 sq ft (140 sq m)
First floor 1367 sq ft
OVERVIEW OF FINANCIALS
There is currently no debt on the site which the borrowers purchased in 2016.
CrowdProperty has agreed to lend the borrower £265,000 in a single raise which the borrower requires to complete the project. £70,000 will be drawn day 1 based on a RICS valuation of £250,000 representing 28% LTV. The estimated total cost of works is £320,000 and the remaining loan will be drawn in stages based on Independent Monitoring Surveyors verification. The amount owed at exit to GDV and once works have been completed will represent a LTV of 42.3% including rolled up interest.
1st charge security will be provided as registered in the normal way with the Land Registry.
The loan term will be a max 18 months and we are targeting a start date of 11th January 2019. Once the works have completed the borrower intends to sell the completed development.
The borrower will complete the development and sell.
min. loan (6 months)
18 month loan
The Directors are experienced in every aspect of the development process including electricals, engineering, construction management and project management. Steve has a vast wealth of experience in residential/commercial developments having been project manager on several projects for 25+ years and David has been involved in multiple electrical fittings for residential properties. The project is well located with easy access to public transport. The low LTV reduces the risk.
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.