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

Varity House, Re-Finance Interim Equity

Vicarage Farm Rd, Peterborough


£128,000

Funded

£128,000

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


  • Offered for Re-Financing for a further 12 months
    This investment is being offered for Re-Financing for a further 12 months. Around 60% of the original Investors have decided to remain in for the extended term and so we are issuing Redeemable B Shares for new Investors.
  • 2 bedroom apartment
    This 2 bedroom apartment was purchased from the Developer when the conversion was completed in 2016. Since then it has been let to the same tenants who will see their tenancy out, at which point the property will be sold on the open market targeted at 'First-Time Buyers'.
  • Investment is by way of Redeemable Class B Shares
    The Investment is by way of Redeemable Class B Shares, offering a fixed capital gain of 11.0% when the shares are redeemed in 12 months time. If the property is sold earlier than planned then Investors will be offered the chance to Redeem early at a rate delivering an annualised 11% p.a. return.
Summary
  • High quality two bed apartment
  • 12 month Interim Equity investment
  • Already tenanted at a rate of £650 per month
  • Popular commuter area
  • Fixed capital return 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 professionals

Description: Varity House comprises 97, one and two bedroom apartments with parking. Set within landscaped grounds, this stylish conversion development is conveniently located just a mile from Peterborough City Centre and was completed in July 2016.  Read more.

Local Property Market


Despite slower than national average growth in recent years, Peterborough is going through a renaissance with values expected to grow 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, a number of high profile businesses 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 £125,675
Stamp Duty N/A
Legal & Professional Fees N/A
Contingency Allowance £1,325
CrowdLords Fees £1,000
Total Fund Required £128,000
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* £138,000
Market Growth** £8,280
Gross Sales Price £146,280
Retained Income £1,402
Sales Costs -£2,629
Corporation Tax -£2,974
Projected Net Profit £14,080
Projected Total Capital Return 11.0%
Share of Growth Paid 100%
Capital Return to Investors £14,080
Projected Capital Return to Investors 10.6%

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

**Market Growth has been estimated but it does not impact the return because of the pre-agreed Share Purchase Price.

 

Return Summary


Investment Period 12 Months
Discounted Sales Price** 6.6%
Market Appreciation 4.5%
Income Return* 0%
Projected Total Return 11.0%
Fixed Total Annualised Return 11.0%

CrowdLords Development Analysis


Risk Rating Profile*

CrowdLords 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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