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Loan amount

£231,000


Interest Paid

0% pa


Funds pledged

£0


Loan Term

9 months


LTV

46%

£0


41 High Street, Hull, HU1 1PS

The borrowers purchased this historic building in the heart of Hull city centre in June 2020, and the phase 1 raise of the project was done through Sourced Capital for the total amount of £647,000. The project plan consisted of converting this beautiful building into offices along with 8 self-contained apartments.

As the COVID-19 pandemic continued throughout 2020, the developer decided to convert the offices into apartments. It was deemed that office space was no longer in such demand with businesses allowing their employees to work from home for the foreseeable, and when this change to the project was considered it showed that adding four new apartments instead of the office space, would generate a higher gross development value (GDV).

The area has seen an incline in housing prices over the last 5 years, totalling an average capital growth of 17%, (source propertydata.co.uk).

Hull has some of the UK’s bestinternational connections due to its location

£3BN public and private investment in the city since 2013

Hull's position as a major port city and its location near several major airportssees it benefits from some of the country's best international connections, while a £70 billion transport plan for the north of England is set to further reinforce its enviable position

The M62 motorway, one of the main east-west routes in the north of England, connects Hull to Leeds, Manchester and Liverpool and the M1. More than eight million vehicles cross the Humber Bridge annually, linking Hull to a growing economic area on the south bank of the Humber.

The property is located within a 10-minute walk to the Hull main train station.

The property is a 5-minute walk to Hull marina a popular visitor location attracting over 5 million people in 2017

To complete phase 2, the borrower is raising £251,000 for the build of the four apartments. The planned exit is to sell the apartments within a 9-month period (which will also be the end of phase 1 works), generating an estimated profit margin of 48% on the sale of the apartments.

Project is Ongoing
• Fund have already been raised for the purchase and for conversion of 8 apartments in phase 1
• Project is on schedule for phase 1

Financials
• Expected development costs – £251,000
• Expected GDV – £545,000
• LTV GDV – 46%

The Location and Local Market
• Hull - Close to Town Centre
• 10-minute walk to train station
• 5-minute walk to Hull Marina
• Area has seen an incline in housing prices of 17%

Planning
• Planning permission is granted by Hull City Council
• Planning is for the conversion to 12 apartments

The Borrowers
• 2 directors
• Know the area well and are working on other refurbishment projects
• Injected £125,500 of their own funds into the project (phase 1)

Investor Security
• Secured Loan with First Legal Charge over the site
• The borrowers have signed a personal guarantee

Every project is evaluated, looking at if the loan-repayment schedule and the borrower’s exit strategy (sale of the developed property or refinance) is realistic, to ensure the most secure and profitable plan is followed. Sourced Capital employ solicitors for every loan that is provided, who work with the borrower’s legal adviser.

The apartments have recently been put on the market off-plan between £125,000 - £165,000 each and can be found here on rightmove - https://www.rightmove.co.uk/property-for-sale/property-85783207.html. There has already been interest in the apartments, with viewings being arranged. A refinancing option has been agreed in principle should the open market sale take too long.

Loan Amount † £231,000
Forecasted Valuation aka GDV †† £545,000
Loan-to-GDV 46%
Loan Term 9 months
Loan Interest ††† % per annum
Bonus Interest †††† 2%
Loan Interest Payment ††††† Full at end of term
Loan Security First legal charge + borrower’s equity + personal guarantee
Platform Fee 2%
Legal Fee 0%
APR 23.56%

Bonus: £50 when you lend your first £500.

Type: Bonus paid on drawdown of the loan by the Borrower.

Terms: To claim this offer, you will need to invest a minimum of £500 into the loan opportunity. You will then have your account credited with £50 on drawdown of the loan. This offer only applies to your first £500 investment. Lender Terms and Conditions apply.

Cash-back Reward: 2% when you lend £20,000 or more.

Type: 2% Interest added on drawdown of the loan by the Borrower.

Terms: To claim this offer, you will need to invest a minimum of £20,000 into the loan opportunity. You will then have your account credited with 2% of the final amount you have invested on completion of the loan. Lender Terms and Conditions apply.


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