Bed Tenanted HMO

 Purchase Loan
Project listed: 22.09.2020
Birkenhead,
United Kingdom
280 400.00 €
Raised Of 520 000.00 €
8%
Annual yield
83%
LTV
Term: 18 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Invest:
Interest payments
22.11.2020
Pending

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Risk rating

CriteriaFrom -2 to 2
Property type0
LTV2
Loan Structure0
Experience0
Development's licence0
Macro-location1
Micro-location1
Purpose of the loan0
Investment length1
EvoEstate Risk rating is of an informative nature only and can not be considered investment advice.
Project rating
B
Originator rating
A-

Descripton

Executive Summary

Video presentation of the project.

This freehold property is an 11 bedroom house, currently set up as 6 bedrooms and 4 self-contained flats, as well as a cottage in the backyard. The property is already functioning as a fully licensed HMO and currently generates £41,088 per annum in rental income. Most of the tenants are long-term tenants whom have been at the property for years, making this a perfect hands-off investment.

The property already generates cash flow, but would greatly benefit from a £85,000 refurbishment, both in terms of increasing market value and future rental demand. Bringing the property up to standard would increase rental rates to current market levels accordingly.

The property has great added value potential, with several end-use options. Namely; a title split, continuation as a luxury HMO, or sale as a high-end 11-bed residential property.

Loan terms

Target amount

€520,000.00

Minimum amount

€500,000.00

Interest per annum

8.00%

Profit share

0.00%

Term

18 months

Payment frequency

1 month

Loan purpose

Buy-to-rent

Type

Bullet

Loan To Value (LTV)

83.20%

Total Loan Cover (TLC)

120.20%

Investment plan

DESCRIPTIONAMOUNT
Purchase property€430,000.00
Refurbishment€90,000.00
Various costs & fees€30,000.00

Payment terms

The remaining amount resulting after deduction of costs including VAT will be made available to Farleys Solicitors LLP, represented by Ashlea Thornton, 196 Deansgate, Manchester, M3 3WF (UK) in exchange for granting the first right to a mortgage in the amount of EUR 625,000.

Additional terms

As the loan is in Euro's and the income is in GBP, there could be a potential currency risk. This risk is born by the fundraiser.

Collateral

The duration of 18 months provides ample comfort for the renovation and refinancing, or sale, of the property. The risks are limited and the fundraiser has sufficient financial reserves to absorb any setbacks from the renovation.

Any potential currency risk is borne by the fundraiser. A first mortgage right for the amount of EUR 625,000 will be established on behalf of all investors, which should be sufficient to cover any financial risks. The property is fully tenanted and located in a premium area. The risk of losing your investment or part thereof is limited. 

WW PIAM UK LTD was founded by Wood Family Investments LTD and Working Class Millionaire LTD who together bring a strong team with relevant experience in real estate.

 

Mortgage

Below mortgage will be established on behalf of investors to secure this loan.

TYPE OF PROPERTYMORTGAGE RANKAMOUNTLC 
ResidentialFirst Rank€625,000.00120.19% 

 

Risks
RISKSCOREMEASURE
Setbacks during refurbishments, causing extra time or money.MediumFundraiser has sufficient liquidity to handle the financial risk of any potential setbacks. The expected duration of the project is 12 months, thus an additional 6 months has been included in the duration of the loan to cover for any unexpected delays.
Significant change in the overall economy that severely impacts the value of the propertyMediumThe execution value of the property in it's current condition (pre-renovation) is above the total loan amount. As such it should be possible to sell the property at a significant discount and repay the loan without loosing any capital.
Currency risksLowAs the loan is in Euro's and the income is in GBP, there could be a potential currency risk. This risk is born by the fundraiser.

 

Fundraiser

Registration number

12792514

Address

85 Great Portland Street, First Floor W1W 7LT London United Kingdom

Contact

WW PIAM UK LIMITED

E-mail

daniel@globalcapitalfamily.com

Message from fundraiser

WW PIAM UK Ltd was founded by Richard Hooper, Daniel Wood, Gisela Wood, David Atkins and Barry Irvine with the goal to provide quality living in high standard homes with above average energy performance to start raising the standard for green living in the United Kingdom.

The team has a broad background in property investing and provides different skillsets that make sure projects are delivered on time and on budget.

Daniel Wood is one of the founders of the Swedish Wealth Institute. As CEO, his job is to create powerful partnerships that support our clients' projects. Amongst the partners are Randi Zuckerberg, Kim Kiyosaki, Success Resources and Tony Robbins. Daniel has raised over 20 Million GBP for property investments and helped facilitate deals on three continents.

Gisela Wood has project managed over 100 property deals in the UK and Spanish Markets, ranging from single flats to apartment buildings, conversions, hotels and even a golf resort. Her expertise is in project management, property research and portfolio management.

Barry Irvine qualified as a mortgage and insurance broker within the family Independent Financial Adviser (IFA) firm. He later went onto to build multiple property businesses from a young age, ranging from bridge finance, lettings, property development and a luxury holiday villa Investment Company in Bali, Indonesia, specialising in serviced accommodation for international investors.

Richard Hooper is a military veteran and serial entrepreneur. Richard is trained in property investment, foreign exchange trading, public speaking, project management, football & business coaching and teaching. He has built multiple start-up businesses ranging from Web Development, Social Media, Fitness, Domestic Cleaning and most notably, a Forex Trading, Property Investment & Digital Business Brokerage.

David Atkins is a fully qualified letting agent, block manager and has held membership of the Institute of residential property managers for over ten years. David runs his family portfolio of 36 properties consisting of singles lets, HMO’s, serviced apartments and manages five blocks of flats. David is a brand ambassador for Progressive Property Training Network and supports the Mastermind & VIP Training. He also leads a refurbishment team for property development throughout the West Midlands and Yorkshire.

Project originated by:

Documentation

280 400.00 €
Raised Of 520 000.00 €
8%
Annual yield
83%
LTV
Term: 18 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Invest:
Interest payments
22.11.2020
Pending
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