EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
The property only requires a light refurbishment and the lease is 92 years, meaning the whole lease extension process can be avoided. While the valuation was £410,000, having spoken to individual agents in the area, after refurbishment, anywhere upwards from £430,000 is deemed achievable.
The property is a well-proportioned ground floor one bedroom flat benefitting from a private yard to the rear and partly side of the building. Forming part of an attractive mid terrace three storey Victorian converted building, it comprises a living room, bedroom, kitchen with double doors leading to the private courtyard, and bathroom There is potential to extend and reconfigure to add a second bedroom subject to requisite consents. The property is in need of some light improvement works.
The property is located on Walcorde Avenue in a quiet cul-de-sac accessed off Browning Street. Just 0.3 miles from Elephant and Castle, the property is well positioned for access to local restaurants, bars, coffee shops and supermarkets. Elephant and Castle is currently undergoing a £4bn regeneration programme and the property is ideally located to reap the benefits of this.
A first rank mortgage valued at € 451.500 will be established on behalf of investors to secure the loan. This value is calculated from the lowest from (A) loan amount, a minimum of 2 years interest and 10% coverage for execution cost (€ 495,300) or (B) execution value after refurbisments (€ 451,500). This results in a loan to value (LTV) of 84.4% and a Total Loan Coverage (TLC) of 118.50%.
Co-Create Property Management LTD. has a C rating from Creditsafe, indicating a moderate risk. The identified risks are estimated as limited. The project owner is confirmed to be very experienced in real estate investing. This loan has been assigned a score of C on the basis of the risk analysis.
Refurbishment cost: There is a risk that the project cost could extend beyond the expected budget.
The fundraiser is in a position to fund additional refurbishments should it extend beyond the initial projection, therefore this doesn't present any significant concern.
Economic downturn could affect property market/values.
Given the area, this risk is considered to be low. The project owner would have to opportunity to refinance the loan and switch to buy to rent model.
The loan is in Euro and as the property is located in the UK, everything is in GBP. The currency exchange risk is borne by the fundraiser.
Registration number 12643032
Address International House 12 Constance Street E16 2DQ London United Kingdom
Contact Savant Property Investments Ltd
Message from fundraiser
We formed in June 2020, when myself, Alex Dyer, and my business partner Shabazz Baidoo, decided to join together after building up our own small respective portfolios of properties individually. We both have a background in professional football, which has allowed us to build up a substantial capital pot for investment and because we both share the same morals and investment principles, we decided we could achieve more together if we combined our experiences.
We set up a strategy of finding undervalued, low lease properties and creating uplift through refurbishment and lease extensions and have so far completed three similar projects in the past year.
To give you an idea of our experience in this particular type of property, I have evidenced a case study of 807E Hertford Road, London EN3 6UG in which we purchased the property for £187,000, spent a total of £40,389 refurbishing the property and extending the lease and have since had a mortgage offer at £260,000. I have included all official documents/bank statements, as we believe our investors are our partners in the deal and as such should get a full, detailed insight into the figures we claim. The same will be the case with any prospective deal we do with Max Crowdfund; we want to show you exactly what we see in a deal and also keep you informed of progress, as and when things occur. Transparency is key to us, as anyone investing their hard-earned money has a right to see that it is in good hands, and exactly what it is doing at any given time.
We have an experienced team of builders on hand, who we have heavily relied on to progress projects to completion on time and on budget. We also have relied upon solicitors and mortgage brokers to ensure there are never any delays with regards to purchasing a property and for our exit. Our exit strategy is always to refinance after completion of any works/lease extensions, but we get this process streamlined by starting our application early, so that once everything is complete, we move seamlessly onto conventional mortgage finance. This ensures any short-term investors receive their funds back in a timely manner, whether we decide to hold the property or sell.
We believe Max Crowdfund is a fantastic solution for those that want to invest in property but maybe don’t have the experience/capital/time required to do so themselves. By investing in our projects, you are not only investing and receiving interest, you are becoming our partners in a deal and becoming an important part of the journey in our projects and our own personal growth, so for this we thank you!