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

Read our full Risk Warning

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

Varity House - 2 Bed Interim Equity

Vicarage Farm Rd, Peterborough


£111,000

Funded

£116,000

Total Fund


Term (Months)
12

Projected Annualised Return
14.1%

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


  • Investment has been reopened
    This investment has been reopened as the developer would like to reduce his capital in this property by issuing more shares to investors to enable him to offer more Interim Equity investments. This has no impact on the terms for Investors which remain as previously.
  • Buy-to-Let development in Peterborough
    An opportunity to invest in a heavily discounted, Buy-to-Let development in Peterborough that is on target to be released in July. This 2 bedroom apartment was secured off-plan by an investor who is now unable to secure a mortgage on favourable terms. The developer is therefore offering Interim Equity for a period of 12 months.
  • Purchased under a 5 year management contract with Let Me (Part of the Richmond Group)
    Once completed, the property will be purchased under a 5 year management contract with Let Me (Part of the Richmond Group) and therefore benefits from guaranteed rent paid annually in advance delivering an income of 3.5% p.a. It also includes a pre-agreed share purchase price at the end of the term that delivers 10.6% of capital growth giving total returns of 14.1%.
Summary
  • 12 month investment period starting on completion in July 2016
  • Heavily discounted purchase price
  • Fully managed with 3.5% income paid annually in advance
  • A pre-agreed exit price delivering capital returns of 10.6%
  • Popular commuter area

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 will comprise 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. The development will be released in 3 phases with the first due 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 £103,995
Stamp Duty £3,120
Legal & Professional Fees £1,844
Contingency Allowance £1,241
CrowdLords Fees £5,800
Total Funds Required £116,000
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* £12,455
Market Growth** £3,545
Gross Sales Price £132,000
Contingency Fund £1,241
Sales Costs -£3,180
CL Growth Fees -£1,724
Gross Profit £12,337
Projected Net Profit £12,337
Projected Total Capital Return 10.6%
Share of Growth Paid 100%
Capital Return to Investors £11,784
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 1 Year
Discounted Sales Price** 8.3%
Market Appreciation 2.4%
Income Return* 3.5%
Projected Total Return 10.6%
Projected Total Annualised Return 14.1%

*Income Return figures assume that the property is on a rental assurance contract at a rate of £600 / month.

**Capital Return figures are based on the pre-agreed purchase of shares by the LandLord at the end of the term at a rate of £1.106 per share. A Share Purchase Agreement will be put in place at the beginning of the term.

CrowdLords Development Analysis


Risk Return 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


Prosperity Property Investor

This listing is promoted by Prosperity in preparation for completion of one of their developments. As a result of many of their sales being to Expat workers who are living and working abroad they are aware that one day they may want to return to the UK and are often anxious that when they do they will be able to buy a suitable place to live with their savings. It might be that they have a number of properties already being managed by a UK based managing agent, and that this apartment is the latest edition.

However, it is usual that a proportion of these investors find that when they come to arrange a mortgage to complete the purchase the complexity of their backgrounds can mean they are unable to secure a suitable mortgage at a reasonable rate in time. Currently their only option is to lose their deposit and walk away - and this doesn't seem fair.

They committed to this investment 24 months ago, convinced by the location and the assured rental, and have paid the 30% deposit required. This SPV is being established to be taken over by one such Investor under an Interim Equity arrangement which enables them to buy out CrowdLords investors at a pre-agreed rate at the end of the term.

It's therefore serving a good purpose whilst generating a healthy return.

Property details


If you have a question about this property, please click below and submit a question to us directly.


Log In to ask a question