Address: 11 Filey Road, Scarborough, YO11 2SE
The property is a semi detached house separated into six self-contained apartments across four floors, providing the following accommodation:
- Four x One-bedroom apartments
- One x Two-bedroom apartment
- One x Five-bedroom apartment
This spacious property is ideally laid out providing substantial living space in a sought-after location close to local amenities with gardens to the front and rear.
The property is situated in the popular town of Scarborough, the second most visited town in the UK outside of London, within walking distance to the town centre, train station and beautiful coastline.
More people are in work than ever before, as the number of people gaining employment continues to rise. In the last year, Scarborough has witnessed a fall in unemployment of 6%. There has been a drastic change in the last eight years, with a 73% improvement on benefit claimants since 2010.
The town has high hopes for a new potash mine under construction up the coast near Whitby. Apart from creating 1,000, long term, skilled jobs, the project is also set to support 1,500 supply chain jobs.
Confidence in the hospitality industry is high, evidenced by major refits in recent years, often targeted at a higher-spending clientele.
There is currently an investment being made of £22M in the towns roadways to enhance infrastructure which reflects on the strong increase in housing prices over the last 5 years, totalling an average capital growth of 22%, reference propertydata.co.uk.
The property needs a full refurbishment throughout, although the ground floor apartments are in worse condition compared to the others, the borrower has decided to take this opportunity to redecorate and update the other apartments whilst the contractor is on site. This means that the apartments can be presented to a high standard.
A structural survey report has been completed confirming that the works required are cosmetic and the building is in good condition.
The borrower intends to refurbish the property and refinance on to a buy to let mortgage so that they can take advantage of the high rental demand in the area.
Our Property Team have undertaken a rigorous assessment of the property loan application.
Ensuring that due diligence has been done properly on the project. We cover the type of project, local market conditions, the borrowers and the exit plan.
Click on the 'Downloads' section at the top of this page to download our due diligence pack.
Given the location of the property and the local demand for rental income, the Borrower intends to market the refurbished apartments for tenants and then refinance.
The borrowers have been preapproved for a re-mortgage. This would convert the property loan to a Buy-To-Let loan, repaying the investor’s loan plus the interest and allowing the borrowers to let the properties out on a buy to let basis. The borrower does have an alternative exit which is to sell the units, the data above confirms that the properties are located in a good area for sales.
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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.