This is the 2nd phase of a 3 phase raise at Wyndham Hall where CrowdProperty completed an 18 month (max) loan agreement with the borrower on 20th November 2018.
CrowdProperty agreed to lend the borrower £1,050,000 to be raised over 3 phases. The Phase 1 raise was £300,000. Phase 2 raise is £300,000 whilst the phase 3 raise of £450,000 will be offered April 2019. The loan term is 18 months (max) from 20th November 2018 so Phase 2 loan will be for about 15 months. Each raise will merge into the existing legal agreement and as with all our loans 1st charge security registered with the Land Registry is confirmed.
The day 1 release from the Phase 1 raise was £175,000 representing an Initial LTV of 70%, The LTV will fall to 63.6% (including rolled up interest) once works have been completed. Phase 2 and 3 monies will be released on the verification of our Independent Monitoring Surveyors inspections as works are completed.
The borrowers purchased the property in October 2018 and refinanced on 20th November with CrowdProperty. Since then they have commenced the conversion works and a recent Independent Monitoring Surveyors inspection reports the following:-
Demolition and strip out work
Lower ground floor tanking
Forming of openings in existing masonry
Lower ground floor steelwork
Ground floor timber floor construction (including reinstatement of existing)
Works planned in the forthcoming period include:-
Continuation of new blockwork to upper floor levels
Ground floor steelwork
Forming new openings
Commencement of ceilings and partitions
Commencement of building services 1st fix
The conversion works are in week 13 of an agreed 40 week programme with Practical completion of the works expected on 19th July 2019.
Wyndham Hall, Wyndham Street, Plymouth PL1 5HE is located immediately to the west of Plymouth City Centre and within a predominantly residential area.
Plymouth is situated in South Devon and is best known for its maritime heritage and historic Barbican district with narrow, cobbled streets. With a population of 234,982 the city is the largest conurbation in the South West and is connected to the rest of the country via the A38 and A30. Bristol is approx. 80 miles to the north whilst London is a further 110 miles; both connected via the M5 and M4 motorways. Plymouths mainline railway station is 0.7 miles to the east with direct trains to Bristol and London Waterloo.
The property comprises a detached former listed chapel last used as a gymnasium but lain empty for a few years. Construction is of solid rendered stone under a pitched roof. Internally the property is full height. The property sits on a site area of 490 sq m with the building occupying circa 90% of this.
Planning has been granted by Plymouth City Council Ref: 17/02043/FUL for a change of use from a gymnasium/sports hall to 6 separate high-end HMOs providing a total of 30 rooms all with en-suites and generous communal areas.
The 6 separate HMO units will have floor areas as follows:
• Unit 1 Lower ground floor 181.3 Sq m
• Unit 2 Ground floor 106.9 Sq m
• Unit 3 Ground floor 104 Sq m
• Unit 4 First floor 105.4 Sq m
• Unit 5 First Floor 104.8 Sq m
• Unit 6 Second Floor 141.1 Sq m
The RICS valuation of the existing property pre commencement of works and with the benefit of planning is £250,000. The RICS estimate of GDV once works have been completed is £1,900,000. Conversion cost is £1.031m – Contractually agreed.
The borrowers intend to exit the loan by refinancing and holding the property as an investment. This phase of the loan is expected to start on 14th February 2019.
On completion of the conversion works the borrowers will refinance onto a long term mortgage, repay CrowdProperty and hold the property as an investment
The borrower is KHP (Wyndham Hall) Limited ( Company Reg. No. 10929009). The KHP Group of Companies specialise in commercial conversions and particularly listed building conversions for either the sale or rental markets. In 2016 KHP borrowed £614,000 from CrowdProperty to convert a former nursing home into individual flats. They subsequently sold the flats and repaid our lenders in full in 2017.
KHP has development projects across South Devon. The directors are listed below and between them they have over 50 years of combined experience in residential and commercial property investment and development.
Philip Bailey, BA Dip Arch RIBA. With 30+ years’ experience of running his own architects practice specialising in residential and commercial property development and conversions including listed building projects.
Philip has also completed the redevelopment of his current house converting it from a 2 bed bungalow to a 7 bed family home.
Kiel Bailey Building Surveyor with 10 years’ experience specialising in timber frame buildings. He previously worked for an architect’s practice for over 10 years. His focus for KHP is on the drawings and construction detail, putting together specifications, and monitoring on-site productivity, quality and cash flow.
Xylina Bailey is a professionally qualified HR Consultant and is passionate about saving historic buildings. Her focus is providing internal design schemes for all KHP projects, sales and marketing and the HR agenda for there growing team.
James Yorke is an experienced Construction Project Manager, having previously led multi-million pound commercial developments for a national construction company. James studied construction management at Plymouth University and then joined a nationwide construction company.
James manages the projects for KHP ensuring a competent supply chain is appointed to deliver the schemes on budget and on time with the health and safety agenda being paramount.
Murat Haykir (Mo) is an experienced Project Manager specialising in leading large, global change initiatives for multi-national financial institutions.
Mo is a full time property investor and developer and is co-founder and Director of KHP Group of Companies. Prior to jumping in to property full-time, Mo worked for both Lloyds Banking Group and HSBC as a Project Manager, working on global, multi-million pound regulatory change projects.
James and Murat have completed a Grade II listed conversion of a substantial house in Plymouth into a 6 bed high end professional HMO and a two bed flat.
They also own and operate an HMO Lettings agency called Moorview Lets in Plymouth where they manage some 120 rooms. Moorview Lets will manage Wyndham Hall to ensure KHP have quality tenants.
The team have between them a Portfolio of HMO’s with some 80+ rooms together with single houses, flats and Serviced Accommodation properties mainly located in Plymouth and the South West.
min. loan (6 months)
16 month loan
In 2016 KHP Investments borrowed £614,000 (79 lenders) towards the conversion of a former nursing home in Saltash into 10 self contained apartments. These were successfully sold and CrowdProperty's lenders were repaid in full and on time. Having now purchased Wyndham Hall at the end of 2018 KHP Investments have commenced works on the conversion of this former chapel and are on programme. From the start they have communicated with us on progress. The Directors are experienced in every aspect of the development process including architect, engineers and construction management.
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.