Paid Back in Full

Forge Road, Tunbridge Wells, TN4 0PN

Developer: Launch Pad Strategies

loan amount

£310,000

interest paid*

10%

funds pledged

£310,000

number of investors

46

% of target pledged

Fully Funded

project type

Conversion of existing residential property to multiple units

loan term

up to 11 months

security

1st charge

project phasing

1 of 1

floor area

910 sq.ft.

purchase price/value

£205,000

cost of work

£281,500

loan to value

43.9%

est. sales value (gdv)**

£550,000

owed at exit to gdv***

63%

strategy & vision

The development involves the construction of a pair of semi-detached houses on the site of a former pub car park. The houses will provide kitchen, living room and separate cloakroom, 2 bedrooms and family bathroom. Each unit will comprise 455sf (gross internal) and will be 2 storey and traditional brick and pitched roof construction.

Planning permission ref. 15/500929 was granted by Tunbridge Wells Borough Council on 18th March 2015.

On completion of the build project the developers will sell the properties.

The RICS valuation believe the site with planning has the value of £205,000 and on completion of the project the houses will have a combined sale price of £550,000.
The loan of £310,000 will be advanced in the following stages. £90,000 on completion of legal formalities and the remainder in stages when works have been completed and verified by the Monitoring Surveyor.

The loan will be secured by 1st charge on the land and properties.

The initial drawdown will be of £90,000, therefore the initial LTV will be 43.9%. Further funds will be released as the project progresses.

The return on costs is estimated at 31.7% to include cost of land, construction cost, consultants’ fees, finance costs of £46,500 and exit fees of £12,250 (agents and legal fees).
The developer profit is estimated at £132,250.

exit strategy

the borrower
& project team

The developer is a family run business based In Tunbridge Wells, Kent. They are very experienced, having successfully completed over 150 projects during the last 14 years, consisting of extensions, conversions and new build. One of these projects was the conversion of the former Flying Dutchman public house into 4 Flats and two commercial units. This project was the first project to be funded through the CrowdProperty platform earlier this year and is on track to pay back all lenders in early August.

This latest development will be set up in a new company called Launch Pad Strategies Limited. This is a Special Purpose Vehicle (SPV), which is standard practice when doing this type of development.

indicated return for your pledge
interest
total
6 month loan
£200
£5,200
18 month loan
£600
£5,600

CrowdProperty Comments


This is a straightforward new build development project. We like the fact that just one of these units needs to be sold with the other being refinanced to ensure that all of the lenders can get their funds back in good time. With full planning permission in place, experienced developers and a healthy profit margin this meets all of our criteria, which is why we have given it the CrowdProperty stamp of approval

The

CrowdProperty

Shield

Rigorous due diligence
1st Charge Security
Unparalleled expertise
more
*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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