The property currently comprises of a range of stone agricultural buildings and steel portal farm type buildings arranged around the area land which is surfaced either with concrete or general composite hardstanding.
The planning permission gained was for seven detached houses in total however the borrower has split the sit into two title to make the build manageable for his team.
The borrower has agreed to offer the lenders the additional security of the second plot of land with first charge security.
The property is situated in a predominantly residential area approximately 3 miles from Barnsley Centre and is within close access to M1 motorway.
Barnsley has an industrial heritage of coal, mining and glassmaking. Now, the town has moved towards a service economy and is home to some high-profile UK business names, from the retailer ASOS, to Europe Premier Foods, which is the largest cake bakery in Europe.
One reason for its popularity is accessibility – Barnsley is just off the M1, a major north-south motorway that connects Leeds to London.
Journey time between Barnsley and London is around 3.5 hours, the same driving time as a trip from Barnsley to Cardiff.
Barnsley town centre is packed full of independent shops, high street stores and is home to one of the best markets in South Yorkshire.
The borrowers have exchanged contracts on the purchase of t he land which is on Upper Hoyland Road in Barnsley . The land will be purchased with planning permission in place for the development of 4 detached four bedroom properties. The investment opportunity was identified by the borrower a property developer and experienced builder who has completed multiple projects in the area.
The borrower is raising £737,000 for the purchase and development of this opportunity. The planned exit is to sell the properties within a 12 month period, generating an estimate profit margin of 18% on sale of the converted property.
The borrower is making a cash injection of £216,000 towards the purchase price of £247,500. Investors funds shall be utilised towards balance of the purchase price totalling £31,500. The remaining balance of the loan will be applied to development costs and professional fees drawn down upon submission of a monitoring surveyor report confirming works have been completed.
The planning permission in place is to develop the existing site through Barnsley Metropolitan Borough Council decision notice (APPLICATION NO. 2018/1264). This outlines a number of conditions that need to be met prior to any development commences. We understand that these conditions are being met with the developer’s design team actively involved.
A copy of the planning consent and drawings can be found on the downloads tab.
Given the demand for smaller properties being popular in this location we intend on developing the property to fit the gap in the market taking advantage of this to gain a high level of return.
The build works will be carried out and the borrower will prepare for an open market sale
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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.