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 loan to value will start at 43.9% based on land value and finish at 56.36% based on Gross Development Value.
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.
|Minimum 6 month Loan||Full 12 month loan period|
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.
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
* 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