Fully Funded

Phase 1 raise - Warton Lane, Austrey, Atherstone, CV9 3EJ

Headlands (Atherstone) Ltd

loan amount

£400,000

interest paid*

8%

funds pledged

£400,000

number of investors

59

% of target pledged

Fully Funded

project type

New development

loan term

up to 15 months

security

1st charge

project phasing

1 of 3

floor area

8886 sq.ft.

purchase price/value

£425,000

cost of work

£750,000

loan to value

69.9%

est. sales value (gdv)**

£1,815,440

owed at exit to gdv***

54.5%

strategy & vision

The proposed project is situated at 18 Warton Lane, Austrey, Atherstone, Warwickshire CV9 3EJ. Austrey is a small village with a population of 1500 residents and is well connected to M42/A42 Junction 11 approx 2 miles to the east. The towns of Nuneaton and Atherstone are both less than 8 miles away and have train stations which provide direct connections to London Euston in 1 hour 15 minutes.

The village provides a local primary school and public house which are both just a short 10-minute walk away from the site. The village is also close to further leisure and tourist attractions including Twycross Zoo and Drayton Manor theme park which are 2.3 miles and 9.7 miles away respectively.

The site currently comprises a three bedroom dwelling with a double garage. The borrower has since gained planning in order to renovate and extend this property as well as build a further 3 x 5 bedroom detached properties. Planning permission was granted by North Warwickshire Council and the application can be found using the reference number (PAP/2017/0375).

The development will be made up of four units which include:
The extension and renovation of the existing dwelling to create a 4 bedroom property
2 x 5 bedroom properties with integral garages
1 x 5 bedroom property with a detached double garage

The site is connected to Warton Lane by a joint private driveway

The current market value (RICS verified) is £425,000.

Estimated build costs for the project are £750,000. With the inclusion of sunken costs, cost of finance, professional fees and contingencies, total costs are estimated at £1,300,000. With a GDV of £1,815,000 estimated out turn profit is estimated at £515,000.

CrowdProperty has agreed to lend the borrower £900,000 across three phases for a maximum of 15 months. The first phase raise will be £400,000, with a further two raises of £250,000 each to be offered during the course of 2019. The borrower will receive a day 1 advance of £297,000 in order to clear the current debt on the property. This represents an initial Loan to Value of 69.9%. The initial works will be funded by the borrower's own equity. The estimated Loan to Value at exit to GDV will be 54.5% including rolled up interest.

The borrowers exit strategy is to sell the properties once he has completed the building works.

The 15 month loan term is a max term and the borrower can pay back the whole or part anytime between 6 and 15 months. As the development comprises 4 houses part repayment is expected as house sales will complete at different times.

As with all CrowdProperty's loans the site and property will be secured by way of a 1st charge registered with the Land Registry.

Targeted loan commencement date for this project is 31/01/2019.

exit strategy

Upon completion the borrower is looking to sell the 4 units and re-pay the loan

the borrower
& project team

The property is owned by Headlands (Atherstone) Ltd which is co-owned by Saj Hussain and Russell Dean Lewis. The site was purchased in 2018 with planning permission granted for renovation and extension of the existing dwelling to create a 5 bedroom dwelling as well as 3 further 5 bedroom detached new-build houses.

Saj Hussain has a BSc (Hons) in Business Information Management and a MBA in Business Management. Before entering into the property field he ran an IT company for 15 years. He began his property business in 2006, starting with Below Market Value Properties and Single Let Properties and since working on HMOs with up to 7 beds with ensuites as well as projects involving light refurbishments and flipping. More recently, Saj has been working on developments with planning applications in Birmingham including new builds and Commercial to Residential conversions.

Russell Dean Lewis has a degree in Quantity Surveying and a MSc in Certificate in Business. He also has HNC Construction Management and Construction Skills Certificate Scheme qualifications. He began his career in the family refurb company at the age of 13. He has been involved in several stages of the development process working as a Quantity surveyor, Project Manager and Building Services Engineer. In the last two years, Russell has focused his attention on property development, undertaking new build, refurb and conversion projects.

Saj and Russell also work closely with his professional team who consist of:

Architect- Michael Borrow from Mindspray Architects - https://www.mindsprayarchitecture.com/

CDM - Sue Fullard FRICS, ARMSPH - https://projex-solutions.com/about/people/sue-fullard/

Main Contractors - Cameron Butcher - https://cameronbutcher.co.uk/

Structural Engineer - ASC Ltd - http://asc-ltd.co.uk/

Quantity Surveyor - Felton Consult - https://www.feltonconsult.co.uk/

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

CrowdProperty Comments


Austrey, is a well connected village in North Warwickshire that is undergoing a modest amount of new housing development. The 2 adjacent schemes totalling 13 houses have all sold adding proof to the credibility of this development.

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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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