Update from the originator:
The originator was able to give EvoEstate an additional 3.000 EUR funding amount for this project.
|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
Purpose of the loan
518 Stanley Road Bootle L20 5DW United Kingdom
The property is located at 518 Stanley Road in Liverpool and was purchased through the company "Commotive Property Ltd". The ground floor is a commercial premise that has a takeaway restaurant, Toscana's Pizza & Grill, as a tenant. The rental agreement is for a period of 5 years at the rate of £650 per calendar month. The first and second floors are being refurbished into 3 ensuite HMO rooms.
The property was purchased with capital from the owners of the company and has no mortgages or liens.
Due to COVID-19, the refurbishment of the property was delayed. This is the reason the owners are seeking to raise a bridging loan, so they may finish the refurbishment and rent out the ensuite rooms. Once the rooms are rented out the property will be refinanced. The expected time to finish the refurbishment is 6 months, but the safety of an additional 6 months has been added to ensure any delays are calculated.
The refurbishment work has already started and a valuation report from June 2020 is available in the documents section. The report shows that valuation after refurbishment will be between £85,000 and £105,000. The current execution value is estimated at £55,000 or approx. €60,000.
A first mortgage of €60,000 will be registered on the property and an additional material business guarantee of €60,000 is provided by the financial holding, which results in a Loan To Value (LTV) of 50%. The financial holding is Verdiend BV, which has an A credit rating from Creditsafe.
Interest per annum
Loan To Value (LTV)
Total Loan Cover (TLC)
No additional payment conditions apply to this loan.
No additional terms & conditions apply to this loan.
Both Commotive B.V., as well as Commotive Property Ltd, are debtors for the loan. Both companies have a C - Average Risk rating from CreditSafe. Montly rental income from Commercial rent is more than sufficient to cover monthly interest and cost payments.
Commotive Property Ltd grants first mortgage rights on behalf of investors for a total of €60,000 / £55,000 excluding additional execution costs.
In addition, the financial holding Verdiend B.V. that is holding 100% of the shares in Commotive B.V. will provide a Business Guarantee of €60,000 excluding additional costs. This Business Guarantee is considered to be fully material. Verdiend B.V. has an A - Very Low-Risk rating from CreditSafe.
Risk is considered medium to low. Combined securities result in an LTV of 50%. The overall loan rating is B - Moderate Risk.
Below mortgage will be established on behalf of investors to secure this loan.
|TYPE OF PROPERTY||MORTGAGE RANK||AMOUNT||LC|
|TYPE OF SECURITY||QUALIFICATION||MODE||AMOUNT||SECURITY GRANTOR|
|Business Guarantee||Material||Constant||€60,000.00||Verdiend B.V.|
|Delay in refurbishments from current COVID-19 conditions||Medium||A significant part of the work is already done. The term of the loan offers sufficient room to absorb setbacks.|
|Vacancies||Medium||Temporary vacancy is always a risk when renting out. It is expected to have contracted tenants before the summer. Only on the basis of commercial rental is ample coverage for the monthly obligation, which is a long-term contract.|
|Delay or rejection of refinancing||Low||Sufficient time has been budgeted to arrange refinancing, taking into account that this generally takes time.|
Geestersingel 68 1815 BB Alkmaar Netherlands
Message from fundraiser
Commotive BV is a Dutch property investment company that has been investing in property in the UK since early 2018. For that reason we have established two UK companies (100% daughters): Commotive Property Ltd for Buy-To-Let (BTL) investments (like this property) and Commotive Trading Ltd for "flips".
Jos Struik (owner) is an experienced entrepreneur since 1996 as a (co-) owner of several IT-companies. In 2012 Jos started a healthcare company in the Netherlands with his wife Caroline that had almost 800 employees when it was sold at the end of 2017. Part of the money that came from this sale is being used to invest in property.
|28.02.2021||Paid||No||26 February 2021, 21:17|
|28.03.2021||Paid||No||29 March 2021, 15:09|
|28.04.2021||Paid||No||28 April 2021, 15:13|
|28.05.2021||Paid||No||29 May 2021, 10:40|