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

Trent House - Off-Plan 1 Bed Buy-to-Let

Trent House, Barnby Gate, Newark


£19,260

Funded

£25,859

Total Fund


Term (Months)
60

Projected Annualised Return
12.6%

Strategy
Off-plan 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


  • One bedroom apartment currently being developed in Newark
    This one bedroom apartment currently being developed in Newark is due for completion in one year's time. This is the first of two tranches of shares and it covers the deposit which is due to be paid in October 2015. The remaining shares will be released in July 2016 and will be due for payment on completion - target date October 2016. As such, these shares carry a higher risk and therefore include rights to a higher proportion of the capital gains.
  • Prosperity Fund, who have a proven track record of developing investment properties, will be the LandLord
    As with other units being funded through CrowdLords, Prosperity Fund, who have a proven track record of developing investment properties, will be the LandLord as well as being the Developer. Prosperity Fund developments also come with a rental assurance agreement which includes a fixed, 12 month rental payment, paid annually in advance along with a guarantee on the property’s condition on return. With that agreement in place we are happy for this to be a 50% leveraged purchase.
  • The total investment period is 5 years
    The total investment period is 5 years which consists of 12 months up to completion and 48 months operation as a Buy-to-Let. It is designed for capital growth as most of the income goes to cover the mortgage and the management by Let Me. Due to the additional risks associated with investing off-plan, these initial shares are eligible for 100% of their share of the capital gains whereas the remaining shares will only be eligible to 75%.
Summary
  • Proven Investment Property Development Company
  • Rental assurance agreement with annual rental paid upfront once completed
  • Town Centre location
  • Off-plan investment designed to deliver strong capital gains

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: Trent House

Address: Newark

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young professionals

Description: Conveniently situated in Newark town Centre, Trent House will comprise 11 one bedroom apartments. Read more.

Local Property Market


Nottinghamshire as a whole has seen property prices slightly underperforming the national average over the past twenty years, however, the county has improved comparatively, year-on-year and it is anticipated that this will continue.

Situated on the banks of the River Trent, Newark is a beautiful town centrally located only 1 hour 40 minutes from London by train, and serving as a perfect historic commuter town for nearby Nottingham City.

This development is only a 5 minute walk to the market square, across the road from Sherwood Avenue Park, and benefits from a central Newark location.

*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 £79,996
Stamp Duty -
Legal & Professional Fees £2,200
Contingency Allowance £1,800
CrowdLords Fees £2,200
Mortgage Fees £40,000
Total Fund Required £46,196
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* £104,995
Market Growth** £22,627
Gross Sales Price £127,622
Contingency Fund £1,800
Sales Costs -£3,114
CL Growth Fees -£4,143
Gross Profit £35,969
Corporation Tax -£7,194
Projected Net Profit £28,775
Projected Total Capital Return 62.3%
Average Share of Growth Paid 71.7%
Total Capital Return to Investors £18,393
Average Projected Capital Return to Investors 44.6%

*The stated Gross Development Value is based on local comparisons.

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

 

Return Summary


Investment Period 5 Years
Discounted Sale Price* 22.8%
Market Appreciation** 39.5%
Income Return* 0.6%
Projected Total Return 62.9%
Projected Total Annualised Return 12.58%

*Income Return figures assume that the property will be void for a period of two weeks each year of the investment term, that development takes 12 months of the term and that the rent charged will be £450 / month for the remainder of the term. 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 5.5% 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 A
Macro Location & Market C
Micro Location B
Level of Development E
Landlord Track Record A
Overall C

* 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 Group is a Birmingham based property development company that specialises in delivering UK investment properties for property investors around the world.

Whilst they have a Midlands focus their developments are located throughout the UK in areas where they see rental demand is high combined with sustained high employment.

The Group includes other related businesses including Clear Mortgage Co which provides a fully regulated mortgage solution for their clients and Lamont Estates estates agency, letting and management company facilitates the whole aftercare experience for their investors and home owners.

Most of the team work from their Birmingham office but they also have offices in Dubai, Hong Kong and Malaysia.

Their total portfolio includes 19 New Build and Conversion projects with a total value of £154m.

Property details


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