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Loan amount

£1,131,750


Interest Paid

0%


Funds pledged

£0


Loan Term

18 months


LTV

57%

£0


The property was built in the early 1900’s for a wealthy family boasting substantial grounds. Over the years the grounds have been sold to form part of the high street and the property developed into office space (B1)a with onsite parking. The internal space measures at 5622 sqft with gardens and ample parking.

The property is freehold and registered with the land registry under title number DT73436.

The property is situated just off the high street in a quiet cul de sac of residential buildings in Bournemouth town centre with direct access to Old Christchurch Road. This is primarily a commercial area with a mixture of residential, office and retail with university students well catered for. The A338 Wessex Way is approximately half a mile from the building which provides excellent communication to the wider area, Bournemouth train station is approximately 1 mile offering a direct service to London Waterloo.

Bournemouth boasts on one the safest and most popular beaches in the UK winning trip advisors beach of the year two years in a row, this stunning bay enjoys its own micro-climate with some of the warmest sea temperatures in the UK. Hotel transactions increased by 23% in 2019 with occupancy rates also continuing to increase and attract global hotel brands.

The area has seen a strong incline in housing prices over the last 5 years, totalling an average capital growth of 22%, reference propertydata.co.uk.

The borrowers have exchanged contracts on the purchase of this four story self contained office block registered on one freehold title. The property has been purchased with planning permission in place for the conversion to 14 self contained apartments. The investment opportunity was identified by one of the borrowers a property investor and resident in Bournemouth for over 20 years.

The borrowers are raising £1,202,875 for the purchase and conversion of this commercial property to be utilised as serviced accommodation units and be sold within an 18 month period, generating a profit margin of 30% on sale of the converted units.

Investors funds shall be utilised as £700,000 towards the purchase price of £875,000. The remaining balance covering conversion costs and professional fees drawn down upon submission of a monitoring surveyor report confirming works have been completed.

The property gained planning permission with a permitted development application to be converted into 14 self-contained apartments, the schedule consists of 3 x One bedroom Apartments, 1 x Two bedroom Apartment, 10 x Studio Apartments.

The planning reference is 7-2019-9993-F and a copy of the planning consent and drawings can be found on our downloads section of this project.

We have instructed Empery Architects to produce building regulation drawings and gain building regulation approval, we expect this to be in place by the end of Jan 2020 ready to begin works. Given that serviced accommodation is so popular in this location we intend on developing the property for the serviced accommodation sector taking advantage of the high occupancy levels and returns.

The borrowers intend to sell the property as a serviced accommodation investment following completion of the conversion.

The below table displays the figures presented by the independent RICS surveyor to achieve the GDV:



We believe the surveyor has been cautious with the room rates and occupancy levels given the information gathered by data sources and experienced local serviced accommodation agents.

The borrowers are in a position that should a sale not be completed in time then a refinance will be utilised to ensure investors capital and interest is repaid as per the terms. The borrowers have already approached refinance lenders and held advanced talks to ensure this is viable.

Loan Amount † £1,131,750
Forecasted Valuation aka GDV †† £2,000,000
Loan-to-GDV 57%
Loan Term 18 months
Loan Interest ††† % per annum
Cash-back Reward †††† 2%
Loan Interest Payment ††††† Full at end of term
Loan Security First Legal Charge
Platform Fee 5%
Legal Fee 0%
APR 94.50%

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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