Due to unprecedented product demand and as a result of user feedback, we have introduced a pledge limit for this project on a trial basis. This is to give those that take valuable time to perform necessary due diligence the greatest opportunity to successfully pledge at 10 a.m. Pledges will be limited to £5000 for the first 5 minutes that the project is live. Post 10.05 a.m pledges greater than £5000 can be created, or an existing pledge for this project can be increased (subject to availability).
The proposed project is situated at Bridge View Nurseries, Church Lane, Calstock, Cornwall, P18 9QJ. Calstock has a population of approx. 6500 people and is located within an Area of Outstanding Natural Beauty and a UNESCO World Heritage Site. The town of Tavistock is located 6.9 miles to the north via the A390 whilst the city of Plymouth is located 17.2 miles to the south via the A388.
The village of Calstock provides a local primary school, two public houses with associated restaurants, a village hall and a yacht club. Calstock railway station is opposite the entrance to the site and provides 9 trains a day to Plymouth.
The site is currently undeveloped land and was formerly used as a nursery and garden centre. The borrower has secured planning to build 33 dwellings. Of this 33, 5 dwellings will not form part of the loan and security agreement as they are held in a different SPV - albeit owned by the borrower - and have been set aside to be sold separately as self-build plots. The land for the remaining 28 dwellings, made up of three parcels of land will form the basis of the secured area.
Planning permission was granted by Cornwall Council and the application can be found under the reference number (PA17/09575). There is also a S106 in place for the affordable housing which can be found linked as associated documents to the planning application aforementioned.
The first phase of the development will be made up of 10 units which include 50% affordable and 50% Full Market Value. The breakdown is as follows:
Plots 1 & 2 will be Full Market Value 4 bedroom detached properties with integral garages
Plot 3 will be a Full Market Value, 3 bedroom detached property with a double garage
Plots 4 & 5 will be Full Market Value, 3 bedroom detached properties with two parking spaces
Plots 6 & 7 will be affordable, 3 bedroom semi-detached properties with two parking spaces
Plot 8 will be be affordable, 4 bedroom semi-detached property with 2 parking spaces
Plot 9 will be affordable, 3 bedroom mid-terrace with 2 parking spaces
Plot 10 will be affordable, 3 bedroom end-terrace with 2 parking spaces
The Current Market Value for the three parcels of land making up the development site is £1,290,000 (RICS verified). CrowdProperty are taking first charge on these three parcels of land.
The site is currently owned by the borrowers under three SPV'S, one for each phase of the development. For each phase, the land is owned unencumbered and the borrower purchased the site in December 2018.
The monies for this development are therefore being solely employed towards the build costs. The build costs including some sunken costs are £1,850,000. The RICS verified GDV for the completed development of phase 1 is £3,348,000 and this includes the land value for phases 2 and 3.
CrowdProperty has agreed to lend the borrower £1,850,000 across four raises for a maximum of 18 months. The first phase raise will be £500,000, with a further two raises of £500,000 and a final raise of £350,000 each to be offered during the course of 2019 and 2020.
The borrower will receive a day 1 advance of £500,000 in order to undertake site clearance, infrastructure works and ground works. This represents an initial Loan to Value of 38.8%. The borrower already has considerable sunken costs in this project having held an option since 2007. The estimated Loan to Value at Exit to GDV will be 61.6% including rolled up interest.
The borrowers exit strategy is to sell the properties once construction and landscaping works have been completed.
The 18 month loan term is a maximum term and the borrower can pay back the whole or part anytime between 6 and 18 months. As the development comprises 10 houses, part repayment is expected as house sales will complete at different times.
As with all CrowdPropertys' loans the property will be secured by way of a 1st charge registered with the Land Registry.
Targeted loan commencement date for this project is 18th March 2019
Upon completion of the construction works the borrower will sell the 10 units and look to commence works on the next phase.
The property is owned under three different SPVs for each part of the development:
Bridge View LL10 Ltd (Co. Reg. No: 11497959)
Bridge View SHLL10 Ltd (Co. Reg. No: 11497941)
Bridge View TL8 Ltd (Co. Reg. No: 11499865)
All these land parcels are owned by the borrowers Michael Wight and Adele Fulner.
Michael Wight has been involved in property development for over 25 years, undertaking 4 large developments in the last four years, with combined Gross Development Values of nearly £7m. Michael and Adele co-own a construction company called Construction Partners Limited (Co. Reg. No: 09258059) which they employ to undertake all their builds. More specialised areas of development such as ground works and services are undertaken by sub-contractors.
Adele Fulner currently supports the business through managing the accounts and administration for all developments.
Michael and Adele work closely with their professional team consisting of:
Architect: Ara Architects -
Structural Engineer: IJR Consulting Limited (Chartered Structural Engineers)
Groundworks: TerraFirma (South) Consultants
min. loan (6 months)
18 month loan
With the development site being situated in an Area of Outstanding Natural Beauty and a World Heritage Site, the chance to develop in Calstock would appeal to most developers. The borrower has spent almost 12 years working up a qualifying planning consent. He knows the site and the area inside out and is now pleased to be able to embark on developing it.
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.