CrowdProperty are delighted to offer lenders the opportunity to lend towards a Serviced Bridging Loan. Lenders to this project will receive our usual 8% per annum 1st charge secured returns but paid monthly. The reason for monthly payments for this specific project is to ensure our maximum LTV of 75% is not breached at any point. The borrower currently lets the properties and receives monthly income, meaning they are able to pay monthly interest. Lenders to this project will be receive our usual 8% per annum, but paid out monthly rather than rolled up. Monthly interest, at 0.667% per month funds will be returned to the account from which you pledge. You will be able to lend in the usual way, using all our investment products: our Standard Product, the CrowdProperty ISA and via SIPP or SSAS
This serviced bridging finance loan is across two let buildings being taken out by the same borrower ahead of securing a long term commercial mortgage. The borrowers existing mortgages on these 2 properties have expired and subject to his Accountants advice he wants to transfer his entire portfolio of 7 properties into a single SPV.
The borrower will be “servicing the loan” so the lenders interest will be paid monthly so that the LTV does not breach our LTV rules and the headroom between debt and value is maintained. The borrower will be able to cover the monthly interest charge as both properties are fully let and generating income.
The opportunity presents and is secured over 2 properties located in Liverpool namely:
• 427 Smithdown Road, Liverpool, L15 3JL
• 253 Breck Road, Liverpool, L5 6PT
LOCATION AND DESCRIPTION:-
427 SMITHDOWN ROAD, L15 3JL
427 Smithdown Road comprises a 3 storey mid-terrace property consisting of a ground floor retail/commercial unit and separate upper floors HMO accommodation. The ground floor shop and 6 bedroom HMO is fully let and generates a gross rental income of £32,736 p.a/£2,728 pcm. The ground floor shop is used as an extension to the adjacent café and is operated by the same tenant. The building is of solid brick construction under a pitched slate roof with PVC double glazed windows. The property is located within a mixed-use area with a number of commercial, residential and amenities nearby including:
– Sefton Park cricket club - 0.9 miles
– Greenbank Park - 0.4 miles
– Greenbank Sports Academy - 0.6 miles
– Tesco express - 0.2 miles
– Ullet Road Post Office - 250m.
The property’s location is convenient to the Borrowdale bus stop which is across the road with regular bus times into the City Centre via the A562 and B5342
253 BRECK ROAD, L5 6PT
253 Breck Road comprises a mixed use 3 storey mid-terraced building comprising a ground floor hot food takeaway and upper floor residential accommodation. The property is fully let to a single tenant at £15,000 per annum. The property is located within the Everton area of Liverpool approx. 2 miles from the City Centre. The property is located in a prominent position on Breck Road within a mixed-use area with a number of commercial, residential and amenities nearby including:
– Liverpool FC supporters club - 0.6 miles
– Anfield Liverpool stadium - 0.7 miles
– Asda superstore - 0.2 miles
– Lloyds Bank adjacent
– Whitefield primary school - 0.3 miles
OVERVIEW OF FINANCIALS:-
The RICS valuation advises 427 Smithdown Road value of £265,000 and 253 Breck Road value at £145,000. CrowdProperty has agreed to lend the Borrower £303,000 which represents 75% LTV. As this is serviced bridging loan the interest charge will be paid to the Lenders monthly. With both properties generating an annual income of £32,736 and £15,000 respectively the interest charge is covered. The single loan agreement will provide a cross 1st charge security over both properties. The loan length will be 15 months (max) with monthly interest payments shared equally to the lenders at 0.667%. Pay back at exit will be capital + last months interest charge as previous months interest payments will have already been recovered,
As with all our loans a 1st charge security on both properties registered with the Land Registry will be provided.
The Borrower intends to bring his 7 properties into a new SPV and move Smithfield Road and Breck Road onto a long term commercial mortgage. As interest payments will be made monthly pay back at exit will be capital only.
The borrowers are Gavin and Laura Barry of Gavin Barry Secure investments/properties founded in 2007. The company is based in Liverpool and primarily focuses on residential properties, student accommodation and HMOs with a portfolio of approx. 25 properties. Gavin is an experienced developer with extensive experience in residential property investment, development, and development management since 2001. In 2005, he worked as Operations Director for TRB Estates Ltd specialising in a range of investments and developments to the tune of £150 million. During this time, he worked on the development of 33 luxury apartments in Liverpool with a £9 million GDV. Since 2007, he has sourced, traded and managed hundreds of residential properties for investor clients throughout UK and Ireland. Gavin was awarded “Deal of the year for 2016” by the East Midlands Property Awards for the student accommodation (Cathedral Court) delivered in Derby - a 350 x bedroom new build sold for £20.3 million. Gavin is also currently managing partner/CEO of Prosperity Capital Partners, a private equity real estate firm in London.
Some of the projects he is currently overseeing include:
-Derby Cathedral view (DC: £19.1m; GDV: £24.0m)
-Birmingham Globe Works (DC: £45.7m; GDV: £51.8m)
-Manchester Old Brewery Gardens (DC: £146m; GDV: £179m)
min. loan (6 months)
15 month loan
This opportunity is different to our usual model as we are introducing a serviced bridging loan product. The LTV will remain constant at 75% throughout the loan term with a monthly interest payment shared equally among the Lenders of £2,020.
Gavin is an experienced property investor and developer and this serviced bridging loan will allow him time to move his personal property portfolio of 7 properties into a SPV and refinance onto long term commercial mortgages.
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.