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

11 Bright Street - 2 Bed Refurbishment

11 Bright Street, Hartlepool


£48,989

Funded

£58,690

Total Fund


Term (Months)
12

Projected Annualised Return
16.8%

Strategy
Standard BTL

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


  • Deceptively spacious, extended, 2 bedroom terraced family home
    A deceptively spacious, extended, 2 bedroom terraced family home in need of refurbishment. Having been secured below market value, the property will undergo a full refurbishment to a high standard by Northern Capital Group. Situated in a popular residential area, with a courtyard and within walking distance from local schools it should let well to a young family.
  • Refurbishment will be extensive
    The refurbishment will be extensive including replastering and repainting of the walls, a new bathroom suite, and recarpeting throughout. It will also include minor external repairs. The work is expected to take 8 weeks and has been agreed at a fixed price of £12,000. These have been included in the calculations.
  • One year to realise capital gain as a result of the refurbishment
    The plan is to keep the property for one year to realise capital gain as a result of the refurbishment and to then sell it on as an occupied investment. To achieve this the LandLord is offering 85% of Income and 60% of capital growth. On these terms the property is projected to deliver good net rental returns of 4.68% p.a. and a net capital growth of 12.09% giving a projected total yield of 16.78% in one year (after costs and corporation tax). UK tax payers are entitled to a 10% dividend tax credit on dividends paid.
Summary
  • A 2 bedroom refurbishment project in a popular town enjoying strong rental demand.
  • This ideal rental property has been purchased at a price significantly below market value and will be fully refurbished.
  • Post refurbishment, the value is estimated to be £72,500 with a rental value of £450 per month
  • Offering investors good capital growth along with rental income over the 12 month period.

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: 11 Bright Street

Address: Hartlepool

Property type: House - Terrace

Property age: 1900 - 1949

Market type: Other

Description: A 2 bedroom refurbishment project in a popular town enjoying strong rental demand. This ideal rental property has been purchased at a price significantly below market value and will be fully refurbished. Post refurbishment, the value is estimated to be £72,500 with a rental value of £450 per month, offering investors good capital growth along with rental income over the 12 month period. Read more.

Local Property Market


The Borough of Hartlepool, housing a population of 90,000 people, has seen a major transformation over the past 20 years through regeneration programmes and public and private sector investment. The town now has major visitor facilities and a revitalised town centre with a wide range of retail facilities.

This property is strolling distance from Middleton Grange Shopping Centre, the third largest in the North East. Home to 140 retail outlets including Marks & Spencer, New Look, River Island, WH Smith and many more.

*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.

 

TBC

Capital Investment


Purchase Price £40,000
Refurbishment Costs £12,000
Stamp Duty £0
Valuation Fees £250
Legal Fees £800
Property Insurance £125
Contingency Fund £2,700
CrowdLords Fees £2,795
Total Fund Required £58,690
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


Projected Net Sales Proceeds £11,827
Total Fund £58,690
Total Capital Yield 20.2%
Share of Growth Paid 60.0%
Capital Return to Investors 12.1%

 

TBC

Return Summary


TBC

CrowdLords Development Analysis


This is the CrowdLords Risk Rating. It shows where the investment lies on our Risk Return Profile. 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. We rate Risk across 5 parameters and grade them as being A, B, C, D or E. A being lower Risk.

 

TBC

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


Name:

Joseph Bush

About:

As a young, 24 year old entrepreneur who runs a successful and growing digital services business in London, Joe sees property investment and management as a way of getting onto the property ladder.

He is a practical and commercially minded individual who, having ploughed all his time and money into his business since he left university, is now looking to build capital for a deposit for his first home. He's targeting properties where it's possible to add value whilst also delivering a good income return to fellow Investors.

Occupation:

I am the Co-Founder and COO of a growing web services business based in London

How long have you been involved in property?

This is my first foray into property. I’ve been looking at it since I was 16 but have not, until now, had enough capital to get started having piled everything into my business venture – which is now stable and generating profits.

How big is your property portfolio?

I don’t have one, yet. But I’ve spent many years watching the market and improving my knowledge and now I’m ready to take on the responsibility and do it for real

What development experience do you have?

None so far, but I do have good business experience that stands me in good stead.

I see it as being the same as running a business. I have a product to market to a particular audience. It’s important I find the right customers and that I deliver a good service. And as long as I look after the product, get the pricing right and deal with all the legislation and bureaucracy – I can make it a profitable business for us all.

Why did you choose to raise finance through CrowdLords?

I was attracted by the equity model as opposed to using debt.

CrowdLords enables me to start to build my portfolio at a decent rate, only limited by my ability to find the right properties and the amount of effort and hard work I am willing to put into it, as opposed to being limited by my bank balance.

Why the North East?

I am targeting areas with steady or increasing rental demand combined with higher than average yields.

Property details


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