Paid Back in Full

34 Sidney St, Beeston, Nottingham, NG9 1AN

Developer: Peter Rowan

loan amount

£200,000

interest paid*

8%

funds pledged

£200,000

number of investors

40

% of target pledged

Fully Funded

project type

New development (eg new build, self-build, air rights etc)

loan term

up to 12 months

security

1st charge

project phasing

1 of 1

floor area

1437 sq.ft.

purchase price/value

£150,000

cost of work

£110,000

loan to value

50%

est. sales value (gdv)**

£375,000

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.

the borrower
& project team

The applicant Peter Rowan purchased the property at auction in February 2016. He purchased it in his Company name Peninsula Property Ltd. Reg .no. 09747895. The company office is in Cheltenham.

Peter Rowan has been involved in property investing for over 20 years having owned and since sold 11 Investment properties in Cambridge. He owned and ran two hotels over a period of 8 years, one in the Cotswolds and one on Exmoor. In the grounds of the latter, he commissioned the construction of the world's first two storey, semi-detached, fully load bearing straw bale house.

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

Shield

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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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