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

42 Main Street - 3 Bedroom Refurbishment

42 Main St, Bishop Auckland


£43,625

Funded

£53,125

Total Fund


Term (Months)
12

Projected Annualised Return
12.2%

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


  • 3 bedroomed family house in Bishop Auckland
    An opportunity to invest in the refurbishment and letting of a 3 bedroomed family house in Bishop Auckland, with the potential for a good balance of income and growth.
  • Purchased at a big discount
    The property is a mid-terraced home being purchased at a big discount, requiring significant refurbishment.
  • Refurbishment is being handled by Northern Capital Group
    This is the second property to be funded by CrowdLords for this Landlord and the refurbishment is being handled by Northern Capital Group who have refurbished hundreds of properties in the area. With 80% of any income and 70% of any capital growth being distributed, it is projected to return 12.3% per annum.
Summary
  • Purchased off-market at a significant discount
  • To be fully refurbished to a high standard
  • In a popular area for family rentals

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: 42 Main Street

Address: Bishop Auckland

Property type: House - Terrace

Property age: 1900 - 1949

Market type: Other

Description: This property is being acquired off-market at a discounted price and following the work it is valued at 27% above the purchase price. It will undergo a thorough refurbishment internally and externally, including repainting of the external façade. The house will then be rented at a monthly rate of £400. The LandLord has chosen a 1 year investment period to enable Investors to capitalize on the opportunity for capital value combined with the potential for a short period of rental income. Read more.

Local Property Market


Bishop Auckland has performed on par with much of the North East over the last 5 years with price increases trailing the rest of the UK. However, Bishop Auckland is improving year on year partly due to the recent regeneration programme.

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 £35,000
Stamp Duty -
Legal & Professional Fees £1,195
Refurbishment Costs £12,000
Contingency Allowance £2,400
CrowdLords Fees £2,530
Total Funds Required £53,125
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* £60,000
Market Growth** £1,500
Gross Sales Price £61,500
Contingency Fund £2,400
Sales Costs -£2,123
CL Growth Fees -£1,078
Gross Profit £7,575
Corporation Tax -£1,515
Projected Net Profit £6,060
Projected Total Capital Return 11.4%
Share of Growth Paid 70%
Capital Return to Investors £3,843
Projected Capital Return to Investors 8.0%

*The stated Gross Development Value is based on a RICS valuation

**Market Growth projections are the opinion of the LandLord only and in reality this figure could be less or even negative

 

Return Summary


Investment Period 1 Year
Avg. Annual Income Return* 4.2%
Total Income Return* 4.2%
Total Capital Return** 8.0%
Projected Total Return 12.2%
Projected Total Annualised Return 12.2%

*Income Return figures assume that the property will be void for a period of two weeks during the investment term, that refurbishment takes 6 weeks and that the rent charged will be £400 / month. In reality all of these variables might change.

**Capital Return figures are based on the assumption that local property values increase in line with the LandLord’s subjective projection of 2.5% per annum. In reality, local values may not rise by this amount or may indeed fall from their current levels.

CrowdLords Development Analysis


Risk Return Profile*

CrowdLords Risk Rating
Investment Period E
Macro Location & Market D
Micro Location C
Level of Development C
Landlord Track Record D
Overall D

* 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


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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