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Loan amount

£244,474


Interest Paid

0%


Funds pledged

£0


Loan Term

8 months


LTV

65%

£0


119 Columbus Ravine, Scarborough, YO12 7QU

The property is currently used as a guest house on a residential road leading into the town of Scarborough.

• Ground Floor: Kitchen, two reception rooms, WC
• First Floor: Three bedrooms and a bathroom
• Second Floor: Three bedrooms and a boxroom

The existing property is to be converted into 3 apartments as per planning permission issued below by Scarborough Borough Council. General observations conducted by the RICS surveyor were that the property was generally noted to be in poor condition. This was reflected in the valuation.

Scarborough is the original seaside resort; stunning scenery, glorious beaches, loads to see and do. According to visitscarborough.com the Borough of Scarborough is the 3rd most visited place in the UK. It is also home to the largest open-air theatre in Europe with an 8,000 capacity. The property is also only a 15-minute walk from the famous Open-Air Theatre, which has featured such acts as Elton John, Little Mix and Kylie Minogue!

The area has seen an incline in housing prices over the last 5 years, totalling an average capital growth of 11%, (source propertydata.co.uk).

The borrower of this project has exchanged contracts on the purchase of this guest house in Scarborough. The property will be purchased with planning permission in place for the conversion of 3 apartments. The investment opportunity was identified by the borrower, a developer who is local to the area.

The borrower is raising £244,474 for the purchase and works of this guest house, converting it into 3 new 2-bed apartments and will sell the apartments within an 8-month period, generating an estimated profit margin of 20% on sale of the converted property.

Investors get a first legal charge on the property.

The purchase price of the property is £180,000. There is £27,000 in borrower equity in the project, and £153,000 of the raise will go towards the purchase of the property, the remaining balance will go towards the build costs. The monies raised will be drawn down upon submission of an independent monitoring surveyor report, confirming works have been completed.

The exit plan is to sell the apartments, which will go on sale once works commence – off plan. The project term is 8 months.

The property gained planning permission to be converted into 3 apartments.

The planning was gained through Scarborough Borough Council (20/00815/FL)

The site is located on a main road Columbus Ravine (A165) which leads into the town centre. The majority of the surrounding properties are established older properties.

The area within the red boundary is the entire site. The agreed purchase price for the whole site is £180,000.

We have agreed with the developer that investors will receive first charge security over the whole site.

On the next two pages are the plans for the apartments and CGIs.

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.

For this project, as the apartments are being built, they will go onto the market off-plan at £125,000 each. 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 term.

Loan Amount † £244,474
Forecasted Valuation aka GDV †† £375,000
Loan-to-GDV 65%
Loan Term 8 months
Loan Interest ††† % per annum
Cash-back Reward †††† 2%
Loan Interest Payment ††††† End of Term
Loan Security First Legal Charge + Personal Guarantee
Platform Fee 0%
Legal Fee 0%
APR 11.59%

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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