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

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

Varity House Refinance - Interim Equity

Vicarage Farm Rd, Peterborough


£99,097

Funded

£99,097

Total Fund


Term (Months)
12

Projected Annualised Return
11.0%

Strategy
Standard BTL

Interim 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


  • One bedroom apartment was purchased in 2016 and existing shares have been issued in two tranches
    This one bedroom apartment was purchased in 2016 and existing shares have been issued in two tranches. The first tranche (Redeemable A Shares) were issued in October 2015 to cover the deposit during the build, the second tranche (Redeemable B Shares) were used to complete the purchase.
  • Property has been let to the same tenant who is in the process of renewing their tenancy
    The property has been let to the same tenant who is in the process of renewing their tenancy. The intention is to sell the property with vacant possession to owner / occupiers in time to redeem all investors in 12 months time. During this period all rental income after costs will be retained within the SPV.
  • Investment to refinance existing property for a further 12 months
    This investment is to refinance an existing property for a further 12 months. Half of the current Investors have elected to stay in for the extended period and these funds will be used to Redeem the shares belonging to those who wish to exit now. We will be issuing Redeemable C Shares to new Investors providing a fixed term, fixed return investment. These Redeemable C Shares offer a fixed capital gain of 11.0% p.a. If the property is sold earlier than planned then investors will be offered the opportunity to redeem early at a rate that maintains the 11.0% p.a. return.
Summary
  • High quality one bed apartment
  • 12 month Interim Equity investment
  • Already tenanted to a local young professional
  • A pre-agreed exit price delivering a fixed capital gain of 11% p.a.

Projected returns


Ordinary Class B Shares
  • For investors investing £20,000 or more
  • Projected Total Return of 44% or 22% p.a.**
  • Over 24 months
  • Minimum Preferred Return of 16% p.a.***
Ordinary Class C Shares
  • For investors investing £20,000 or less
  • Projected Total Return of 35% or 17.5% p.a.**
  • Over 24 months
  • Minimum Preferred Return of 12% p.a.***

*Target start date is 31st May 2018. Shares may be issued in two tranches to avoid delays.
** Projected return to be paid as a capital gain if circumstances make it possible to do so
*** The Minimum Preferred Return is the return payable to Crowd Investors before the Developer takes any profit themselves.

Property name: Varity House

Address: Peterborough

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young proffesionals

Description: Varity House comprises 97, one and two bedroom, apartments with parking. Set within landscaped grounds, this stylish conversion is conveniently located just a mile from Peterborough City Centre.  Read more.

Local Property Market


Despite lower than national average growth in recent years, Peterborough is going through a renaissance with values expected to increase steadily over the coming years. Situated just 80 miles north of London it is building a reputation as a long term sustainable growth area.

Already a key player within the 'London-Stanstead-Cambridge-Peterborough corridor' - a priority growth area defined by CLG - Peterborough has attracted a number of high profile businesses that have begun relocating to the area. Eight years into a fifteen year £1 billion redevelopment, the City's transformation grows from strength to strength; and this has resulted in significant rental demand which currently outweighs supply by around 2:1.

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 N/A
Stamp Duty N/A
Legal & Professional Fees N/A
Development Costs N/A
Contingency Allowance N/A
Redemption Value £65,516
CrowdLords Fees £3,276
Total Investment £65,792
Other Shares £33,305
Total Equity to Be Issued £99,097
Less Finance & Deposits £N/A
Remaining Funds Required * £N/A
Ordinary A Shares - Developer Equity £N/A
Ordinary B Shares - Crowd Equity £N/A
Orindary C Shares - Crowd Equity £N/A

* Shares may be issued in Tranches to avoid delays

 

Capital Returns


Gross Development Value* £115,000
Market Growth** £4,600
Gross Sales Price £119,600
Retained Income £2,901
Sales Costs -£2,295
CL Growth Fees £0
Gross Profit £21,109
Corporation Tax -£4,011
Projected Net Profit £17,098
Share of Equity held as Class C Shares 66.4%
Share of Growth Paid to Class C Shares*** 42.3%
Capital Return to Investors £7,237
Projected Capital Return to Investors 11.0%

*The stated Gross Development Value is based on the current sales values achieved within the area

**Market Growth has been estimated based on reference to market forecasts for the region

*** C Class Share holders are eligible to a fixed return of 11.0% which equates to 42.3% of Projected Net Profits after Tax

 

Return Summary


Investment Period 1 Year
Income Return 0%
Total Capital Return 11.0%
Projected Total Return 11.0%
Projected Total Annualised Return 11.0%

CrowdLords Development Analysis


Risk Return Profile*

CrowdLords Buy-to-Let Risk Rating
Investment Period A
Macro Location & Market C
Micro Location C
Level of Development A
Landlord Track Record A
Overall A

* The Risk Return Profile is a subjective assessment made by CrowdLords based on the information provided by the LandLord. 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


With this Investment, CrowdLords has the role of Managing Investor and is responsible for managing the property as the LandLord.

In these instances, CrowdLords has a small equity stake in order to accommodate the legal structure, and we retain income in the SPV to provide a buffer when it comes to the exit.

We use Complete RPI, a specialist letting service, to manage and let the property on our behalf. When it comes to the end of term, we arrange the sale through a local agent. Post sale, when Investor shares have been redeemed, then we are also responsible for closing down the SPV.

Property details


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