Update from the originator: Due to the delays in the English land register, the borrower has less cash flow than he had previously expected. As a result, every month just a little less than what he must pay in interest for this loan. As a result, he can only pay the full interest in the following month. As a result, the interest payments will be one month behind until the end of the term. However, the borrower is currently in the process of selling a property. If he sells these before the end of the term, he will be able to make up for the arrears and the interest payments will be added again.
|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
This opportunity is to purchase the freehold of a block of 6 flats with a light refurbishment which includes replacing the bathroom in Flat 1 and general painting of the whole apartments. The strategy is to carry out a title split where these freehold blocks of flats would be split into individual titles and “sold off” on long-term leases. Properties in this location are in high demand and the estimated time for completion is expected to be within 6-12 months if not earlier. Alternatively, those properties could be ‘’let out’’ for a passive income of £ £4,080 per month after which the exit will be to refinance the property via a commercial buy-to-let mortgage.
10 Cowper Road West Sussex BN11 4PD United Kingdom
Interest per annum
Buy to sell
Loan To Value (LTV)
Total Loan Cover (TLC)
|Refurbishment Cost, Contingency and Professional fees||€5,638.00|
|Gross Development Value||€1,236,145.00|
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.
The currency exchange risk is borne by the fundraiser.
A first rank mortgage valued at € 918,000 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 (€ 1,072,500) and (B) market value (€ 918,000). This results in a loan to value (LTV) of 89.9% and a Total Loan Coverage (TLC) of 111.3%.
10 COWPER ROAD WORTHING 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.
Below mortgage will be established on behalf of investors to secure this loan.
|TYPE OF PROPERTY||MORTGAGE RANK||AMOUNT||LC|
|Renovation not completed on time / within budget.||Low||The project developer controls all stages in-house, including renovations. Risk considered to be low and sufficient slack in timeline and budget to cover for any setbacks if they may occur.|
|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.|
10 Cowper Road Worthing BN11 4PD West Sussex United Kingdom
10 COWPER ROAD WORTHING LTD
Message from fundraiser
I, Richmond Mensah am the founder and shareholder of Buckle J Limited and run a successful serviced accommodation and lettings business in Andover, Hampshire. Buckle J Limited is now expanding and entering property development.
I commenced my career as a banker with Royal Bank of Scotland and am now working for a Bank based in Canary Wharf, London. Buckle J Limited also manages other serviced accommodation properties for landlords in London and Hampshire. Richmond was awarded the Traveller Review Award in 2021 for his professionalism and for providing high-quality properties for guests.
I am purchasing this property via an SPV called Cowper Road, Worthing Limited. I am delighted to commence my property journey with Max Crowd Fund and build a working relationship to facilitate future projects specifically within the remit of property development. The block of six flats will be a great milestone to achieve as I will be working with knowledgeable investors who brings a wealth of experience to the project.
|28.02.2022||Paid||No||24 February 2022, 22:14|
|28.03.2022||Paid||No||25 March 2022, 17:37|
|28.04.2022||Paid||No||17 June 2022, 18:27|
|28.05.2022||Paid||No||22 June 2022, 20:09|
|28.06.2022||Paid||No||04 August 2022, 12:52|
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