Due to unprecedented product demand and as a result of user feedback, we have introduced a pledge limit for this project on a trial basis. This is to give those that take valuable time to perform necessary due diligence the greatest opportunity to successfully pledge at 10 a.m. Pledges will be limited to £5000 for the first 5 minutes that the project is live. Post 10.05 a.m pledges greater than £5000 can be created, or an existing pledge for this project can be increased (subject to availability).
The proposed project is known as Olivia House, Plumstone Road, Birchington, Kent CT7 0JD. Birchington has a population 10,000. It is located 5.3 miles away from Margate and 11.4 miles from the city of Canterbury.
The village of Birchington provides a local primary school, a medical centre, a sailing club and several bars and restaurants. The village also provides Birchington-on-Sea train station which provides half hourly trains to London Victoria and London St. Pancras.
Planning permission has been granted by Thanet District Council under the planning application numbers F/TH/15/0973 & F/TH/16/0229 for the construction of a two storey property with three bedrooms.
The property comprises a three bedroom 2 storey detached property with a total floor area of 1,489 sq. ft
Ground floor is 765 sq. ft including lounge, Kitchen/Dining Room and Shower Room
First floor is 724 sq. ft and provides three bedrooms, one en-suite and two bathrooms
Externally there is parking and a garden at the rear
The site is owned by the borrower with existing 3rd party debt of £224,000. The current Market Value is £395,000 - RICS verified.
Construction works on the property require completing. It is already structurally sound with all windows, doors and roof fitted. The re finance will be utilised towards paying off the remaining debt of £224,000 and completing the landscaping, porch installation, driveway, front brick wall and connection of services (Gas, Water, and Electricity) making a total agreed loan facility £280,000.
This is therefore a development exit loan. The out turn GDV is £450,000 - RICS verified - further validated by the borrower having exchanged contracts with a 3rd party for the onward sale of the house once works have been completed. A completion date has been agreed for 28/02/2020 although this could be brought forward by mutual agreement of both parties and determined by the lead in time and execution of works by the Utility Companies.
CrowdProperty has agreed to lend the borrower £280,000 in a single raise for a maximum of 12 months.
The borrower will receive a day 1 advance of £250,000 to pay off the debt and provide monies to order the utilities. The rest will be drawn down once the rest of the building works have been completed. This represents an initial Loan to Value of 63.3%. The estimated Loan to Value at Exit to GDV will be 68.4% including rolled up interest, assuming the loan runs full term.
The borrower's exit strategy is legally secured with an exchange with a buyer already in place.
The 12 month loan term is a max term and the borrower can return it in full between 6 and 12 months. The sale to the buyer has a back stop date of 28/02/2020. Therefore the loan from CrowdProperty will finish at the same time.
As with all CrowdProperty's loans the property will be secured by way of a 1st charge registered with the Land Registry.
Targeted loan commencement date for this project is 15th March 2019
An exchange has already occurred for this property, making the exit strategy legally secured
The property is owned by Mark Rowe. The site was purchased in 2015 with planning permission granted under the reference numbers (F/TH/15/0973 & F/TH/16/0229) by Thanet District Council.
Mark Rowe has been involved in property for over 30 years with an extensive property portfolio worth nearly £7,000,000 spanning across the UK, Dubai, Spain and Bulgaria.
Mark also has development experience, creating a number of new builds as the sole director of his former company Rowe Homes Limited. These homes were all created in the Home Counties. Mark has also refurbished several listed and historic buildings including most notably Sandling House in Penenden Heath. He create 4 separate homes in this former Ministry of Defence Building.
Mark is now the director Barnard Systems Limited and Tidy Homes Limited. Barnard Systems Limited provide the modular build system for this development. The company has been running for 30 years. The build designs and manufacturing is all done within the same company, meaning the start to end process is completely managed by Barnard Systems Limited.
The company provides steel framed modular properties which are mortgageable by all major lenders and structurally guaranteed by Aedis Warranties.
min. loan (6 months)
12 month loan
The loan is our 1st development exit product, with the property just requiring services installation, landscaping and external works. The property is a modular build and is a great example of the future of UK property. Modular builds offer a efficient, high quality and sustainable build process and look to be the answer to the UK's housing supply deficit. With an exchange of contracts already in place the exit strategy is legally secured.
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.