Phase 1 of the project has been successfully delivered – raising the £275,000 from the crowd to pay off the outstanding mortgage on the current property and to cover the planning and consultant fees.
As a result of paying off the existing mortgage CrowdProperty now holds a first charge over the property. Also, planning permission was granted on 06/02/2015, You can see the planning details here: http://waverweb.waverley.gov.uk/live/wbc/pwl.nsf/%28RefNoLu%29/WA20142347?OpenDocument
The development now moves into Phase Two and this offering is for you to take part in funding the Phase Two of the development project.
The development involves the demolition of an existing bungalow and detached garage, followed by the construction of a new detached property of approx. 3,600sqft with high end finishes together with a detached double garage.
The design of the property has been prepared with consideration to local architecture, the landscape and site conditions, it is ideally located for respected local schooling, Farnham is less than 5 min drive as is the station for travel to Waterloo in just over an hour.
The Phase Two loan is for the sum of £575,000 for a loan term of 12 months, which will be used for the construction costs of building the new property. The 12 month term will be long enough for the demolition of the existing property, construction of the new build and sale.
The funds will be released at appropriate stages throughout the build, based upon sign off by a quantity surveyor employed on behalf of CrowdProperty.
The combination of Phase One loan and Phase Two loan will be a total of £850,000, which is secured with a first charge against the new build property.
There will be additional costs of £179,000 for finance and other costs meaning the total project cost will total £1,029,000.
|Minimum 6 month Loan||Full 12 month loan period|
This project is being delivered as a joint venture between Mr and Mrs Cootes, the legal owners of the property, and Oliver Steele Perkins who will Project Manage the development to drive it to completion. Mr and Mrs Cootes are the Borrowers and the loan will be in their joint names.
Oliver is an experienced Project Manager, he holds an HND and first Class Degree in Construction Management and has his own Project Management practice that works for Private Clients and Developers in the residential property sector.
He advises on the potential development opportunity of property, brings design teams together, co-ordinates and manages the legislative and design requirements to prepare for building work, tenders the work and Project Manages the build.
In the last 2 years, two client projects have been shown in “25 Beautiful Homes” magazine and he was interviewed by “YPN” magazine in Dec 14 about a successful bungalow to house conversion / development which he procured and managed direct to trades and with no Main Contractor.
He has completed over 100 refurbishment projects ranging from buy to let, buy to sell, full house refurbishments, extensions, basements, listed buildings and new build work.
This is exactly the type of project we like to back on CrowdProperty. Very profitable and being run by a highly experienced property developer.
Now that Phase One is funded and planning permission has been granted we believe this will be a very successful project and anticipate that Phase Two will be filled quickly.
* Please see full risk statement here.
† Estimated Sales Value is more formally referred to as GDV - Gross Developed Value
‡ Interest Cover is a measure of the project's ability to cover the interest payments from profits and is calculated by dividing the Projected Return on Costs by the Total Interest incurred throughout the loan period