|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
Silhouette Property LTD identified a property in the Crosby area, which they believe offers a unique opportunity to achieve an above-average return over a relatively short period of time. The property concerned is a 3-bed, semi-detached house on a residential street.
The property is off-market and it has no mortgage registered on it. The fundraiser knows the seller is wanting a quick sale. This provides the opportunity to secure a quick decision at below market value.
The house is in a good solid-state but requires refurbishment throughout. It will need a re-wire, new kitchen, bathrooms, flooring and decorating throughout. The extremely large garden will also be modernised. The property has a large garage to the side, which could be used as a gym, or a bar/family room which will be decorated and brought up to standard.
A single-storey extension is also under consideration and Silhouette Property LTD plans to apply for planning and sell the house with approved planning to go into the loft space.
The exit strategy for the property is either a sale for around £300,000 or a refinance with a high street bank where a "normal" mortgage would be obtained and the loan provided by Max Crowdfund would be repaid.
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 is made available to the fundraiser.
A first rank mortgage of € 250,000 excluding all execution costs will be established on behalf of investors to secure the loan while the market value after completing renovations is estimated at approximately € 350,000. In addition, a personal guarantee of € 85,000 qualified as mostly material will be provided to secure the loan. Combined, resultiing in a loan to value (LTV) of 74.6% and a Total Loan Coverage (TLC) of 134.0%
SILHOUETTE PROPERTY LTD has a C rating from Creditsafe, indicating a moderate risk. The identified risks are estimated as limited. The project owner is supported by a very experienced consultant in real estate investing.
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|
|Personal Guarantee||Mostly material||Constant||€85,000.00||Elizabeth Jane Warburton|
|Currency exchange||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.|
|Refurbishment cost: There is a risk that the project cost could extend beyond the expected budget.||Low||The fundraiser is in 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|
2 Morland Road CR0 6PR Croydon United Kingdom
Silhouette Property LTD
Message from fundraiser
Firstly, thank you for taking the time to read this pitch. My name is Elizabeth Warburton, I am a television presenter working specifically in property and lifestyle shows. I am also looking to expand my property portfolio in the North where I am from.
This project would be a solo project with a full-time Project Manager in place, which is Adam Sutton. Adam is the winner of Liverpool’s ‘Agent Of The Year 2021” and opened his own estate agency, Adam Sutton Estates, in 2019.
The property has come off-market and with Adam’s expertise and unsurpassable knowledge of this area, having grown up in Crosby, he believes this is an opportunity that is quite literally gold dust in the area.
|11.09.2021||Paid||No||15 September 2021, 14:01|