Loan #564555 Refurbishment 3 bed HMO
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 premises which 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 a safety of an additional 6 months has been added to ensure any delays are calculated in.
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.
Investors can invest in real estate backed loans from €100 or a multiple of this. NOTE that there is a 0.1% fee to make an investment. As such you need to ensure you add this 0.1% when making a transfer to ensure you can invest the amount you would like to invest, i.e. if you would like to invest €10,000, you need to transfer €10,010 to your account on Max Crowdfund.
Because of the regulations in the Netherlands:
- A maximum of €80,000 applies per individual investor in total investments made on Max Crowdfund.
- If you have a joined account this is doubled to €160,000.
- Company accounts as well as Qualified Investors have no limits.
Please note, that Max Crowdfund can optionally set a maximum for a single investment regardless of the above.
You will be notified in case your investment(s) exceed(s) any limit.
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No. Investors must be over 18 and must have an approved account, meaning their Know Your Client (KYC) documentation needs to be submitted and approved and have a bank account linked to their account. Country-specific restrictions exist and certain nationalities may be prevented from participation in some investment products. This is to prevent money laundering, tax evasion and other illegal activities, in line with our commitment to regulatory compliance and transparency.
At the moment we only accept EURO for investing in real estate backed loans. We are aiming to accept all currencies, including crypto currencies, like we do for the Max Property Group Share Certificates, but this depends on the regulators.
By Dutch law you are allowed a 24 hour cooling-off period, which means you can either change or cancel your investment during this time without any fees charged. After the cooling-off period you cannot change or cancel your investment. You are still allowed to make a second investment. Multiple investments will be combined in one when a loan is finalised.
Yes, but you will need to have a joined bank account with your partner. If you have a joined bank account, you can request to register a joined account on Max Crowdfund. Once approved, the regulatory limit for investing will be doubled to €160,000.
You can only register a new bank account by making a bank transfer of any amount from that bank account. We only accept bank accounts that are held by you and are in your name.
If you only have one bank account registered, this will automatically be your preferred account. In case you have multiple accounts registered, you can select only one of those to be the preferred account. Funds in your Max Crowdfund Current Account that are not used for a period of more than 60 days will automatically be transferred to your preferred bank account.
When the fundraiser fails to meet their obligations to make periodic payments as defined in the loan agreement, Max Crowdfund will follow up. Periodic updates will be shared to inform investors about the status of the loan. To recover from default, measures like a change of terms can be proposed, but this requires the approval from a majority of all involved investors via online voting. In the worst case scenario the Max Crowdfund Security Agent will execute on the collateral for the loan and distribute the proceeds to the investors.
Loan terms summary
- Interest per annum 7.00%
Fully subscribed 60000 raised
- Risk class i
- Expires Closed
- Target amount €60,000.00
- Profit share 0.00%
- Term 12 Months
- Payment frequency 1 months
- Loan purpose Bridging
- Type Bullet i
- Total Loan Cover (TLC) 200.0%
- Loan To Value (LTV) 50.0% i
- Location United Kingdom
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