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Loan amount

£433,500


Interest Paid

0% pa


Funds pledged

£0


Loan Term

6 months


LTGDV

62%

£0


199 Wellsway, Bath, BA2 4RZ

• Georgian Townhouse
• Arranged as four apartments
• Views to the rear

This beautiful building is set 0.6 miles from the local community and shops in Bear Flat and 1.2 miles from the city centre and Bath Spa Railway Station.

The ground, first and second floor offer three one-bedroom apartments. Each apartment offers a bedroom with an en-suite shower room to the front with an open plan living room to the rear with a kitchenette. The garden maisonette is arranged over two levels with an open plan sitting and dining room leading into a newly fitted kitchen. A separate utility area and shower room lead from the hall with stairs leading down to the bedroom, which features a converted vault that could be used as a dressing room or study. A door leads from the hall to the garden offering a patio area that steps down to an enclosed lawn. A timber garden shed offers garden storage. Each apartment enjoys far reaching views across Lyncombe Vale from the rear of the building.

The area has seen an incline in housing prices over the last 5 years, totalling an average capital growth of 20%, (source propertydata.co.uk).

Bath is a UNESCO World Heritage site, and is also famous for its beautiful town planning and architecture from the Georgian and Regency periods. Bath is the largest city in the county of Somerset and has a population around 97,000 according to propertydata.co.uk. Located on the River Avon Bath is with the Bath and North East Somerset (BNES) council area.

Bath is one of the country’s main tourist cities. Around 6.25 million people visit the Bath area each year, according to Visit Bath. They say it is the eleventh most visited tourist centre in the UK by visitors from abroad. Bath is not all about tourism though. Other industries in Bath include those which offer well-paid jobs, which is great news for the Bath property market. Bath industries include software, publishing and tech. This report says that the Bristol and Bath region has one of the strongest FinTech ecosystems in the UK with a high number of fast-growing FinTech start-ups.

The borrowers of this project have exchanged contracts on the purchase of this end of terrace house, which is split into 4 flats.

The property requires a light refurbishment and a title split, so that the borrowers can sell as individual flats. The investment opportunity was identified by the borrowers, investors and developers who are local to the area.

The borrowers are raising £433,500 for the purchase and refurbishment of the property. The plan is to then sell the apartments, during the 6-month term.

Current Plot
• Currently an end terrace split into 4 apartments within 1 title.
• Requires light refurbishment and a title split to create 4 separate properties.

Financials
• Expected development costs – £73,500
• Expected GDV – £700,000
• LTV GDV – 62%

The Location and Local Market
• Bath
• 12 minutes to Bristol via direct train link
• 82 minutes to London via direct train link
• Area has seen an incline in housing prices of 20% over the past 5 years
• Average salary £44,300
• Average 1 bedroom sold in Bath for £250,000

The Borrowers
• 2 directors
• Know the area well
• Been in property for over 10 years and is a RICS Surveyor

Investor Security
• Secured Loan with First legal charge over the site
• The borrowers have signed a personal guarantee
• Director’s cash contribution of £106,700 into the deal (equity in the project)

Exit Strategy
• Open market sale
• Refinance option agreed, should sale take too long

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 refurbished, they will go onto the market, off-plan. A refinancing option has been agreed in principle should the open market sale take too long.

Loan Amount † £433,500
Forecasted Valuation aka GDV †† £700,000
Loan-to-GDV 62%
Loan Term 6 months
Loan Interest ††† % per annum
Bonus Interest †††† 2%
Loan Interest Payment ††††† End of Term
Loan Security First legal charge + borrower’s equity + Personal Guarantee
Platform Fee 5%
Legal Fee 0%
Exit Fee £0
APR 22.98%

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.


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