Paid Back in Full

34 Sidney St, Beeston, Nottingham, NG9 1AN

Please note, for this project, pledges will be limited to a maximum of £0 until 10.05am. After 10.05am, you can create pledges larger than £0 or increase the size of your pre-existing pledge. This is subject to the project amount remaining which needs to be raised.

loan amount

£200,000

interest paid*

8%

funds pledged

£200,000

number of investors

40

% of target pledged

Fully Funded

project type

Residential (Standard Construction)

loan term

up to 12 months

security

1st charge

project phasing

1 of 1

total loan facility

-

floor area

1437 sq.ft.

rics valuation

£150,000

cost of work

£110,000

est. sales value (gdv)**

£375,000

initial loan to value

50%

loan to gdv

53.33%

owed at exit to gdv***

58.67%

strategy & vision

34, Sidney Road, Beeston, Nottingham NG9 1AN comprises a 2 bed detached house of about 80 years old. Traditionally built of brick/render elevations under a pitched tiled roof the property is affected by structural movement which will require underpinning as recommended by the vendors Consulting Structural Engineer, ML Consulting based in Nottingham.
As part of CrowdProperty's process ML Consultant will enter into a 12 year warranty to provide future purchasers additional cover when the property is sold. Added to this a full building control certificate will need to be issued. This will then make the property mortgageable and therefore saleable.
The property has the benefit of a detailed planning consent ref.14/00707/FUL to extend to provide a 4 bed, 2 reception family home.
Currently the house provides around 873 sq ft of accommodation. Once extended the house will have living accommodation totalling 1,437 sq ft.

The property was purchased in February at Auction by Peter Rowan in his company name Peninsula Property Ltd. Peter paid £150,000 cash for the property. He is now seeking to refinance so that he can undertake the works. CrowdProperty have agreed to lend him £200,000 in 2 tranches - £75,000 as initial payment and £125,000 in phases during the extension. The £125,000 will be held by the solicitors and released as and when the Independent Monitoring Surveyor inspects progress and verifies money spent at the point of inspection. The length of the loan is a minimum of 6 months and a maximum 12 months.

The RICS valuation places an existing value of £150,000 on the property and a GDV once works have been completed of £375,000. The cost of the extension and internal modifications are assessed at £110,000. With total costs (including purchase price, conversion costs, consultants fees, sale fees, contingencies and interest charge) amounting to £303,000 this scheme is expected to create a profit of £72,000.

Initially the loan will amount to 50% LTV. Once the conversion works have been completed the LTV will be 53.3%.

exit strategy

Peters exit strategy is to sell and/or re mortgage and let out.

indicated return for your pledge

interest

total

min. loan (6 months)

£200

£5,200

12 month loan

£600

£5,600

CrowdProperty Comments


This is a classic project of adding value to a property on which is was not possible to obtain a mortgage.

By using professionals to solve the problem and extend the property, the value will be significantly increased which means the is much lower risk for the Crowd due to the low loan to value.

We are delighted to give this project the CrowdProperty stamp of approval.

The

CrowdProperty

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Rigorous due diligence
1st Charge Security
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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.

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Your capital is at risk. No FSCS protection. Past performance is not an indicator of future results. Tax treatment depends on individual circumstances and may change. full risk warning.

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