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Elliot House - Senior Finance

61-65 Park Green, Macclesfield

£360,000

Funded

£360,000

Total Fund

Term (Months)

Target Interest Rate (p.a.)

46%

Strategy

1st Charge

Minimum Investment

£1,000

Debt Deal

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

1st Charge at no more than 65% LTV
Conversion is 95% complete
Debt investment by way of Bonds, minimum Term 3 months, maximum term 6 months, fixed returns of 9% p.a

The Investment is by way of a Fixed Return, 9% p.a. Bond Instrument issued by CL Number Twenty Six Limited, the Special Purpose Vehicle (SPV) holding security over the assets. The term of the Bond is 6 months with the option to redeem anytime after the initial 3 month period. Returns are not guaranteed.

The property is made up of three, two-storey Victorian terraced buildings previously comprising a ground floor restaurant, a separate retail unit and upper floor residential accommodation. It was purchased in 2017 with full Planning Permission (Ref: 17/3002M) for conversion into 6 self-contained flats - 3x 1 bedroom flats and 3x 2 bedroom flats.

The property is structurally sound and the work has mainly consisted of internal alterations and external decoration. The conversion has been part funded by development finance which is due to be redeemed on the 27th July 2018.

The funds raised here will be used to provide a bridging loan to the Developer to cover the period between then and the completion and sale of all six units.

The Bridging Loan will be secured via a Fixed and Floating charge over the assets at a Loan-to-Value of not more than 65%.

The Bond Instrument can be downloaded from the "Documents" tab.

This Bond issue has been underwritten which means that no matter how much investment is raised on the platform, then the Bond issue will still go ahead. Interest payable for each bond starts from the day you invest via MangoPay.

Each Bond has a value of £1,000 and so there is a £1,000 minimum investment.

To view the Full Investment Summary click on the "Next Step" or "View Offer Document" button above.

PLEASE NOTE: The assets of the Development SPV will be under a fixed and floating charge. If the units are not sold and the Developer is unable to redeem the loan then there is a risk that it is not possible to recover all of the funds and that some or all of your capital is not repaid. You may also consider that the Loan-to-value, at not more than 65%, is expected to be sufficient to protect against any loss of capital.

Projected returns

Fixed Return Debt Investment

6 Month Term
Bond Issue: £360,000
GDV: £596,500***
Loan: £357,000*
Maximum LTV: 65%**

Issuer: CL Number Twenty Six Limited

Number of Bonds available: 360
Value of Each Bond: £1,000
Security: 1st Charge
Fixed Return : 9% p.a., minus basic tax rate deducted at source

*Excluding Fees and Interest
** Including Fees and Interest
*** GDV is an estimate based on comparable sales (see page 7 of the Investment Summary).

Income is not guaranteed and there is a risk of capital loss. Please see pages 10 and 11 of the Investment Summary for further information about risks

Property name: Elliot House

Address: Park Green, Macclesfield, SK11

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young proffesionals

Description: The property is made up of three, two-story Victoria terraced buildings previously comprising a ground floor restaurant, a separate retail unit and upper floor residential accommodation. The property was purchased in 2017 with full Planning Permission (Ref: 17/3002M) for conversion into 6 self-contained flats of which there will be a split of 3x one-bedroom flats and 3x two-bedroom flats.

Local Property Market

The North Eastern Cheshire former industrial and market town of Macclesfield is a relatively affluent and desirable location, which, like many towns of its type, saw significant expansion during the Victorian era centred on its principal industries.

Following the Second World War, like many parts of England, Macclesfield was further expanded with the construction of a number of suburban residential areas, with developments being both private and Local Authority driven, which, over the years, would virtually double the town size. Macclesfield benefits from its own distinct and sizeable town centre, relatively popular outlying suburban areas as well as excellent road communication links to the region’s principal towns, cities, motorway network and employment areas.

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.

Key Terms

Issuer:	CL Number Twenty Six Limited registered in England and Wales with company number [TBC] whose registered office is at Lance Levy Farmhouse, Wildmore Lane, Hook, Hampshire, RG27 0HB
Amount	360 Bonds of nominal value of £1,000 each
Interest Rate:	9% per annum, simple interest (basic rate tax deducted at the source)
Interest Payment	All accrued interest to be paid in one lump-sum on the Maturity Date
Default Interest Rate	3% above the Interest Rate, but subject to recovery of the same under underlying Loan
Maturity Date	6 months after allotment (being the minimum period for which the Issuer must pay interest prior to redeeming)
Minimum Subscription	1 Bond

Purpose	The proceeds of the Bond issuance shall be used by the Company to participate in a Loan as a lender to Elliot Jones Property Deals Limited to enable it to settle an exiting mortgage, to complete the development of the property at 61-65 Park Green, Macclesfield, SK11 7NH
Security	The Company shall secure its Loan to Elliot Jones Property Deals Limited by way of a fixed and floating debenture over all the assets and undertakings of Elliot Jones Property Deals Limited
Documentation	Bond Instrument and this Term Sheet
Governing Law	English

Return Summary

Investment Period	6 Months
Fixed Total Return	4.5%
Fixed Annualised Return	9.0%
Returns not guaranteed

CrowdLords Development Analysis

The blocks shown in the "Risk Analysis" chart illustrate the CrowdLords Risk Rating. It shows where the investment lies on our internal 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 according to our criteria.

Capital Returns

We include a CrowdLords Risk Rating to illustrate where the investment lies on our internal Risk Return Profile. Where risks are higher it is usual to expect a higher potential 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 of loss
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

Elliot James is a father and son team established by Martin Webb in June 2015. Starting small they purchased, refurbished and sold residential property. In 2017/18 they started acquiring larger commercial buildings to convert into residential accommodation.

Property details

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Further Questions

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