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Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

99 Ballam Road - 8 Luxury Apartments

99 Ballam Rd, Lytham Saint Annes


£405,000

Funded

£405,000

Total Fund


Term (Months)
18

Projected Annualised Return
21.3%

Strategy
Development

Full Equity
Projected returns are an estimate. Returns may go down or up based on the future market value of the property and rental values achieved.


Key Points


  • 8 luxury contemporary apartments
    This project involves the demolition of a large villa on Ballam Road, Lytham, to be replaced with a single building housing 8 luxury, contemporary apartments, set within the existing mature gardens. It will deliver: 3x 2 Bed Ground Floor Apartments with gardens; 4x 2 Bed First Floor Apartments with balconies; 1x 3 Bed Penthouse with private terraces and 16x Parking Spaces
  • Planned to take 18 months from start to the last sale
    This will be the first development bought to CrowdLords by Harrison Hunt, an offshoot from the highly acclaimed Purcell architectural practise who specialises in the conservation and preservation of heritage sites. The development is planned to take 18 months from start to the last sale.
  • Full planning permission
    Following an appeal the site now has full planning permission. The Vendor has agreed to delay part payment of the purchase until after completion which helps cashflow and reduces the cost of finance. The Developer will be contributing £70k of the required equity, with the remainder coming from the Crowd.
Summary
  • Exclusive architect designed, luxury apartments
  • Situated next to a golf course in an affluent and sought after location
  • 5 apartments already reserved including the Penthouse
  • 18 month investment
  • Projected total returns of either 31.9% or 40%, with 16% p.a. preferred minimum return

PLEASE NOTE: This is a leveraged investment that uses debt secured via a first charge on the development. As such there is a risk that in the event that the debt is not repaid, that some of your capital is not repaid.

Projected returns


Ordinary Class B Shares
  • Ordinary Class B Shares for investments over £25,000 with a projected annualised return of 26.7% p.a.
  • Preferred minimum return of 16% p.a.*
Ordinary Class C Shares
  • Ordinary Class C Shares for investments over £5,000 with a projected annualised return of 21.3% p.a.
  • Preferred minimum return of 16% p.a.*

*Shares with a preferred minimum return are preferential to all other shares up to the minimum return level. This means that the minimum return (i.e. 16% p.a.) will be paid out first from profits before any other distribution to other shareholders. With this investment Class B and Class C shares are deemed as equal in terms of priority and are both preferential to Ordinary Class A Shares.

Property name: 99 Ballam Road

Address: Lytham

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young professionals

Description: Harrison Hunt are pleased to offer the opportunity to be involved in the development of 8 luxury apartments next to one of Lytham's golf courses. The project involves the demolition of the existing large villa to be replaced by a striking modern building sitting within the existing mature gardens.  Read more.

Local Property Market


Lytham, along with it's neighbour St Anne's on Sea, are situated on the Fylde coast at the estuary of the River Ribble. Together they are probably best known for their four golf courses, the most notable being the Royal Lytham & St Annes Golf Club. According to the Guardian, "Lytham is so posh that the entire town appears to consist of wide avenues lined by genteel late Victorian, Edwardian and 1920's villas peaking behind trees".

For such a peaceful location, Lytham is actually well served by main roads and public transport. The motorway offers direct access to Blackpool and Preston. The town also has two railway stations, Ansdell & Fairhaven and Ballam Road, which offer frequent trains to Blackpool North, Kirkham, Preston and Colne.

Ballam Road is a 1920's addition consisting of large villas and generous mature gardens, nestled between Lytham Hall Park and Lytham Green Drive Golf Course.

The area appeals both to older buyers looking for a quiet life and a wide choice of golf courses, or young professional families attracted by good schools and a lively town with a cafe culture

Local Property Market analysis uses House Price Index data from The Land Registry. The commentary is opinion only and should not be taken as fact.

 

Capital Investment


Purchase Price £480,000
Stamp Duty £54,000
Legal & Professional Fees £150,500
Development Costs £1,875,000
Contingency Allowance £75,000
CrowdLords Fees £33,500
Total Investment £2,668,000
Less Development Finance -£2,263,000
Remaining Funds Required £405,000
Developer Equity £70,000
Crowd Investors Class B Shares £176,500
Crowd Investors Class C Shares £158,250

* Shares may be issued in Tranches to avoid delays

 

Capital Returns


Gross Development Value* £3,860,000
Market Growth** £0
Gross Sales Price £3,860,000
Vendor Final Payment -£320,000
Unused Contingency £7,500
Sales & Finance Costs -£235,716
CL Growth Fees -£26,315
Gross Profit £617,469
Corporation Tax -£117,319
Projected Net Profit £500,150
Share of profits payable to Class B shares*** 14.1%
Projected Dividend for Class B shares £70,700
Projected Total Return for Class B shares*** 40%
Share of profits payable to Class C shares*** 10.1%
Projected Dividend for Class C shares £50,515
Projected Total Return for Class C shares*** 31.9%

*The stated Gross Development Value is based on the current sales values according to local agents

**Market Growth has not been considered which is normal practice

***B Class Shares are only available for investments over £25,000

 

Return Summary


Investment Period 18 Months
Projected Total Return 31.9%
Projected Total Annualised Return 21.3%

CrowdLords Development Analysis


Risk Return Profile*

CrowdLords Risk Rating
Market Sensitivity B
Time Sensitivity A
Cost Sensitivity B
Preferred Return B
Experience E
Overall C

* The Deveopment Risk Return Profile is a subjective assessment made by CrowdLords based on the information provided by the Developer. It is different to the BTL Risk Reward Profile and they should not be compared directly. Investors should make their own assessment of Risk & Reward before investing

 

Capital Returns

We include a CrowdLords Risk Rating to illustrate where the investment lies on our Risk Return Profile.  Where risks are higher it is usual to expect a higher return and this is designed to aid quick comparisons only. It is our opinion only and should not be taken as a recommendation. You should judge the Risk for yourself using the information provided and your own investigations to form your own opinion.
We rate Risk across 5 parameters and grade them as being A, B, C, D or E. A being lower Risk. The five areas we grade are:

The Investment Period – the longer the period, the less the risk
Macro location and market – has the area performed well historically
Micro location – is the property in a good location for rental / sale
Level of Development – the degree of development and the cost / time risks
Track Record – the track record of the LandLord / Developer

We combine these into a weighted rating between A and E and show how the Risk / Return compares with what we would expect.

About the Sponsors


Harrison Hunt operates in the space between the national volume house builders and local small-scale developers with our ethos being the creation of beautifully designed, bespoke, sustainable schemes across the UK.

What we have to offer:

  • Careful site selection working with Local Authorities and other public and private sector land owners, ensuring we employ intelligent and sympathetic solutions to optimise added value
  • Ability to unlock potential in listed buildings or heritage settings, where competitors have limited expertise
  • Ability to address market need where there is a clear and sustained demand based on rigorous market research
  • Focus on opportunities where our skills can add the most value
  • Ensuring that we select the right partners with similar values, passionate about creating green, low carbon sustainable environments
  • Innovative funding solutions tailored to meet specific project requirements

Property details


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