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Loan amount

£100,000


Interest Paid

0% pa


Funds pledged

£0


Loan Term

8 months


LTV

54%

£0


The property currently comprises an end of terrace 4 bed house in Gainsborough near Doncaster. When acquired the property was in average condition throughout albeit dated. Since acquisition internal strip out works have been completed. Externally the property is in a good condition.

Demand for high quality rooms in the area is robust and there is limited competition for good quality rooms. The works will be undertaken via a local HMO specialist.

Gainsborough is predicted to see an economic growth forecast of 12%, which supports a 47% increase in the number of homes.

Gainsborough has seen strong growth over the last five years boasting a 17% increase in house prices during the period.

We have collated some key points about the surrounding area of this investment project:

• A short walk from the local town centre.

• Local train stations are 15-20 minute walk or 5 minute drive.

• Access to the motorway network is just 30 minutes away via Scunthorpe (M180) to the north, or Blyth (A1M) 30 minutes to the west.

• A number of primary and secondary schools are in close distance.

• Thriving markets are held in the town centre.

• Surrounding Gainsborough you’ll find a wealth of picturesque villages encased by beautiful countryside.

• Just 30 minutes drive will also bring you to the historic City of Lincoln.

• The Lincolnshire Wolds, an Area of Outstanding Natural Beauty is also just under an hour away.

The borrowers purchased this property in auction in Feb 2020, for £72,000, completing onthepropertyinMay. The property is due to be converted to provide a high spec 6 bed (all ensuite) HMO. The investment opportunity was identified by the borrowers, retained property consultants, who have completed multiple projects in the area.

The borrowers are raising £100,000 which part will go towards refinancing of the property and the rest towards the refurbishment works. There will be a 12 week build programme, the rest of the term will be to achieve a commercial valuation so that the borrower can refinance and keep the property. The property has been purchased and is owned freehold unencumbered with vacant possession.

Investors funds shall be utilised as £28,500 to refinance the property acquisition of £72,000. The remaining balance covering refurbishment costs and professional fees drawn down when fully funded.

Planning is not applicable on this project.

Upon completion the property will generate rents of between £90 -100 per room per week, with an approx. total market rent of £2,470 pcm.

The property will be professionally managed by a local HMO specialist.

Upon completion the property will be refinanced and held as an investment.

Loan Amount † £100,000
Forecasted Valuation aka GDV †† £186,624
Loan-to-GDV 54%
Loan Term 8 months
Loan Interest ††† % per annum
Cash-back Reward †††† 2%
Loan Interest Payment ††††† End of the term
Loan Security First legal charge + personal guarantee
Platform Fee 0%
Legal Fee 0%
APR 9.75%

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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