Loan #1419539 Newbury, RG14 5LL, United Kingdom

Property location
1 Bartholomew Street Newbury RG14 5LL United Kingdom

Executive Summary

This project is a straightforward renovation project, expected to take just 8 months and with minimal changes to the existing property. Following the renovation, the property will be rented out with a list of potential tenants already lined up. 

The property, in the thriving town of Newbury, is currently a vacant mixed-use property. The residential portion will be refurbished as a licensed HMO (House of Multiple Occupation). The residential element has previously been used as an unlicensed HMO so the refurbishment will be straightforward. The developer will also be splitting one of the larger rooms to make an additional bedroom, thus increasing the rental yield. The commercial element of the building will be refurbished by the incoming tenants at their cost. There are three potential tenants lined up for the commercial space and a waiting list of residential tenants for the HMO from the developer’s existing HMO business in the town. 

The exit strategy is to re-mortgage onto a long term product once the building is fully tenanted. If the re-mortgage falls short for any reason we have cash reserves to make up the shortfall. If a suitable re-mortgage product is not available we have the option of using bridging finance. As a final exit strategy we can sell on the open market.

Newbury is a market town in the centre of the south of England, sitting at the strategic crossroads of the main East-West route between London and Bristol as well as the main North-South route between the port cities of the south coast and England's second-largest city, Birmingham. It is within easy commuting distance from London, which is only 40 minutes away after a recent upgrade to the local railway route.

Newbury is a thriving and affluent town, benefitting from hosting the headquarters of both Vodafone and Microfocus as well as numerous other global companies. It was also recently included in the top25 'European Cities of the Future list compiled by the Financial Times. Due to all these reasons, it has a consistent demand for both residential and commercial properties. 

Investing FAQ
Loan terms summary
  • Interest per annum 12.00%
  • Fully subscribed 555,200.00 raised
  • Risk class i
  • Expires Closed
  • Target amount €555,600.00
  • Profit share 0.00%
  • Term 8 Months
  • Payment frequency 1 months
  • Loan purpose Buy-to-rent
  • Type Bullet i
  • Mortgage rank First Rank
  • Total Loan Cover (TLC) 125.1%
  • Loan To Value (LTV) 79.9% i
  • Location
    United Kingdom
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