30 and 32 Brunswick Road are a 4 and 2 storey mid and end of terrace building. No. 30 is grade 2 listed whilst No. 32 was extended in the early 1970s. Helm Crag Developments is a company owned by The Harlings and specifically set up for the purposes of owning and developing this project.
Both properties are ideally located within close proximity to the high street shops and the popular city Docks area where the Gloucester Quays retail outlet includes a new multiplex cinema and many well know bars and restaurants.
There is plenty of parking at the rear of the properties, which is a rare and a highly sought after commodity this close to the city centre.
They have exchanged contracts and are due to complete on 22nd January 2016.
They are purchasing the properties for £300000 (£150000 each) and this has been verified by a recent RICS valuation. CrowdProperty have agreed to lend them £225000 and are looking to The Crowd to back this scheme at an interest rate of 8% for a period of up to 15 months.
A planning application is about to be submitted and will comprise
No.30 – 3 two bedroom flats and a single one bed flat
No. 32 – 3 2 bedroom flats
The Borrower will return to CrowdProperty to request a phase 2 raise once the planning application is determined. The phase 2 loan will be for £336,000 and this will fund the conversion works. The phase 2 funds will be released in stages throughout the build period based on sign off by Crowd Property’s Monitoring Surveyor.
There will be further costs borne by the borrower of £169,175 made up of £106,175 finance costs and £63,000 of consultant and selling fees, insurance and contingencies. Total estimated costs will be £805,175.
The sum of the phase 1 and phase 2 loans will be £561,000 secured with 1st charge on both 30 and 32 Brunswick Road. Once the conversion works have been completed the properties will have an estimated GDV of £1,010,000 as verified by a recent RICS valuation.
The maximum loan will result in a 55.5% LTV to final GDV. The estimated out turn profit before tax is forecast at £204,825 representing a 25.4% profit on all costs with a CrowdProperty interest cover of 2.09.
|Minimum 6 month Loan||Full 15 month loan period|
Helm Crag Developments - Joe & Jane Harling
Joe and Jane Harling are property developers and landlords, with 28 years experience.
They own an extensive portfolio of over eighty rental properties in the West Country, mainly in and around Bristol. The portfolio includes commercial units, apartments, houses and bungalows. In addition to this they are also currently developing four premises into a total of twenty two units, excluding Brunswick Rd project. The portfolio currently has a market value in excess of £13m.
Joe and Jane specialise in converting larger properties, often commercial, into residential apartments and retail units. A particular speciality is converting Listed buildings and they have many years of experience at Grade 2 and Grade 2* level.
Past projects include complete renovations and conversions, derelict buildings, changes of use, holiday accommodation, extensions to simple refurbishments. They have also successfully sold properties for planning gains.
They have always fully embraced the “paying it forward” principle and spend many hours happily helping others on their property journey via seminars, webinars and networking events.
They run courses on commercial to residential conversions and title splitting and host a networking event called Bath Property Meet.
We are delighted to be able to offer this loan opportunity to our Crowd of lenders because this is the perfect type of project for this platform. The Harlings are very experienced in commercial to residential conversion and so we have very high confidence in their ability to deliver this project.
They have a number of exit strategies and the project has been split into two phases to minimise exposure in case for any reason planning permission is not granted. This is another project where we have secured the funds to guarantee the purchase which means you can start earning interest as soon as 22nd January.
* 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