The land is on a quiet residential road in a sought-after seaside area in Clacton-on-Sea.
The previous property on the plot has been demolished and the first phase of 6 terraced houses are in works. The additional 3 terraced houses for this phase will be constructed in one block of 3 as per planning permission issued by Tendring District Council.
Clacton-on-Sea is the largest town on the Essex Sunshine Coast. It has plenty going for it – and people frequently relocate there from London (just over an hour away), as well as from other parts of the UK.
With its easy access to London, Clacton-on-Sea is also popular among day-trippers. It offers an array of entertainment facilities including a pleasure pier, arcades, theatres, a golf course, seafront walks, water sports, and an airfield offering pleasure flights (as well as beaches, of course). The main shopping area contains many of the more familiar national chains, independent stores, as well as a variety of eateries - which is a common theme throughout the area. Just outside of town is Clacton Factory Outlet offering a wide range of individual stores with famous name brands at discounted prices.
The borrowers purchased this plot of land in August 2020, and the phase 1 raise of the development was done through Sourced Capital for the total amount of £1,103,000. The first phase project plan consisted of building six terraced 3-bed townhouses.
In the second raise of the project, the borrower is raising £660,900 for the build of an additional three terraced 3-bed townhouses (plots 7, 8, 9 Nelson Road). As with the first phase, the planned exit is to sell the properties within the 10-month term of the loan, generating an estimated profit margin of 20% on the sale of the three houses.
• Expected development costs – £660,900
• Expected GDV – £1,035,000
• LTV GDV – 64%
The Location and Local Market
• Clacton-on-Sea - Close to town centre
• Close to the hospital
• Largest Town on the Essex Sunshine Coast
• Area has seen an increase in housing prices of 8%
• £36m coastal project underway
• Average salary (based on two people: £66,000)
• Average 3 bed sold in Clacton for £255,000
• Planning permission is granted by Tendring District Council
• Planning is for 9 dwellings; this raise is for the remaining 3 of the 9 dwellings
• Not many houses being built in the area, agents support the scheme
• Two directors
• Over 30 years combined experience in property
• Secured Loan with First legal charge over
The houses have been valued higher than during the previous phase, this is because of the current market and the demand in the area has increased.
These houses have already gone onto the market off-plan along with the first phase properties. There is strong demand, with viewings already taking place and one house already reserved.
You can view the houses on rightmove here - https://www.rightmove.co.uk/property-for-sale/property-97925714.html
A refinancing option has been agreed in principle should the open market sale take too long.
Interest will be repaid with the capital at the end of the 10 month term.
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Bonus: £50 when you lend your first £500.
Type: Bonus paid on repayment 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 repayment of the loan. This offer only applies to your first £500 investment. Lender Terms and Conditions apply.
Bonus Interest Reward: 2% when you lend £20,000 or more.
Type: 2% Interest per annum added to your rate of return.
Terms: To claim this offer, you will need to invest a minimum of £20,000 into the loan opportunity. You will then have your investment return automatically increase by 2% pa. Lender Terms and Conditions apply.