|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
We managed to secure the property below market value at £245,000, with the independent surveyor valuing it at £285,000, so we have an excellent margin right from the start. The property only requires a light refurbishment and while the lease is only 51 years, the seller has served a section 42 notice on our behalf, meaning the freeholder is legally obliged to extend the lease for us. With a strong sales market in the local area for this type of property, we have a lot of local comparables which gives us a strong degree of certainty in achieving the valuation when we refinance. It also gives us the option to sell if we decide to as these types of flats are highly desirable.
The property is a well-proportioned ground floor two-bedroom maisonette benefitting from a private section of the rear garden. An attractive example of E17's famous Warner-style flats , it boasts bright spacious rooms, a large bathroom with space for a separate shower and bathtub and a fitted galley kitchen with direct access to its share of the rear garden. The property is in need of modernisation to bring it up to modern standards but boasts beautiful character features which make it charmingly unique.
The property is located in Walthamstow, between both St James Street and Lea Bridge Road stations so transport links are easily accessible. The local bus route is also within one minute walking distance from the property and has buses running to Blackhorse Road Station, Walthamstow Central, Leyton and Stratford. Lea Bridge Road amenities are within walking distance so you are spoilt for choice for shops, bars and restaurants. The property also benefits from being within walking distance to the new Lea Bridge Road station which has direct access into Stratford. The local landmarks like Westfield shopping centre, Epping forest and the Olympic park are all very close and easily accessible.
The loan will be paid out to the solicitor’s bank account to purchase the property and establish the legal charge, after which the remainder will be made available to fundraiser.
A first rank mortgage valued at € 339.000 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 (€ 386,100) or (B) execution value (€ 339,000). This results in a loan to value (LTV) of 88.5% and a Total Loan Coverage (TLC) of 113%.
Savant Property Investments 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 B on the basis of the risk analysis.
|Refurbishment cost: There is a risk that the project cost could extend beyond the expected budget.||Low||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.||Low||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.|
|Currency risk.||Low||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.|
International House 12 Constance Street E16 2DQ London United Kingdom
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!