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Loan amount

£1,103,000


Interest Paid

0%


Funds pledged

£0


Loan Term

14 months


LTV

55%

£0


6 Nelson Road, Clacton on Sea, Essex, CO15 1LU

The land is on a quiet residential road in a sought after sea side area in Clacton on Sea.

The existing property on the plot is to be demolished and 6 mews houses are to be constructed in 2 blocks of 3 in its place as per planning permission issued below by Tendring District Council.

General observations conducted indicated the site to be in a good condition.

A short walk from the local town centre

On a quiet road of residential buildings

Local amenities and a train station are a short 5 minute drive or 17 minute walk

Beach access at the end of the road

Minutes walk to the local hospital

The A133 leads straight into Clacton-onsea, which provides excellent connections to the wider area with routes to Chelmsford in 50 minutes or 1 hour 30 into East London

The properties will offer sea views

The borrowers have exchanged contracts on the purchase of the plot of land. The land will be purchased with planning permission in place for the build of 6 properties. The investment opportunity was identified by the borrower who are property investors and developers and have completed multiple projects in the area.

The borrowers are raising £1,103,000 for the purchase and build of these 6 new terraced 3 bed town houses townhouses and will sell the property within an 14 month period, generating a profit margin of 39% on sale of the converted property.

There is another plot of land, next to this plot. Which the borrowers are allowing investors to have first charge on.

Investors funds shall be utilised as £199,000 towards the purchase price of £504,000. The remaining balance covering build costs and professional fees drawn down upon submission of a monitoring surveyor report confirming works have been completed.

The property gained planning permission to be converted into 9 dwellings, following demolition of the existing dwelling. This raise is for 6 of the 9 dwellings.

The planning was gained through Tendring Council (18/00888/FUL) and a copy of the planning consent and drawings can be found on the documents tab

The site is located in a quiet leafy suburban location close to the beach. The majority of the surrounding properties are established older properties with mature gardens. There are not many houses being built in the area, local agents are supportive of the scheme with 3 agents confirming sums between £340,000 / £350,000.

The build works will be carried out and the borrower will prepare for an open market sale

A refinancing option has been agreed in principle should the open market sale take too long

Loan Amount † £1,103,000
Forecasted Valuation aka GDV †† £2,005,000
Loan-to-GDV 55%
Loan Term 14 months
Loan Interest ††† % per annum
Cash-back Reward †††† 2%
Loan Interest Payment ††††† End of Term
Loan Security First legal charge + borrower’s equity + personal guarantee
Platform Fee 5%
Legal Fee 0%
APR 11.63%

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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