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Ladybank - Senior Finance

Commercial Crescent, Cupar

£200,000

Funded

£200,000

Total Fund

£245,000 minimum raise
Term (Months)
6
Target Interest Rate (p.a.)
12%
Strategy
1st Charge
Minimum Investment
£500
Login to invest
Debt Deal
IF ISA
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

  • Development of 34 residential units

  • 6 Month term. Min Investment £500
  • 12% p.a. Target Interest Rate
This loan is for the development of 34 residential units on a site in Ladybank, Fife, Scotland, that has planning permission for 45 residential units.

The project, which is in progress, will offer country living, contemporary homes and good transport links to Dundee, Perth and Edinburgh. This first phase will deliver

- 8x 1 bed apartments   
- 4x 2 bed apartments   
- 12x 3 bed mid-terraced villas   
- 8x 3 bed end terraced villas   
- 2x 4 bed end terraced villas 

The funds raised will be used as part of a Development Facility totalling £3,200,000 being raised in partnership with Funding Secure and to be released in tranches over the next 18 months. These funds will bring the total drawn to date to £1,665,000. Including this tranche the current LTV will be 61.5% and the LTGDV is 20.23%

The site is 100 yards from Ladybank train station with regular trains to Edinburgh, Dundee and Perth making it ideal for commuting. Ladybank has an 18 hole Open qualifying championship golf course as well as the usual amenities expected in a small town.

The GDV of the site is officially valued at £5.018m but the marketing appraisal states expected sales values of £5,532m. The aim is to have the first 9 units completed in the early spring, with the first sales expected at Easter.

The site was last visited towards the end of November 2018 and it was reported that they are making good progress and is on track. The block floor plates for the first 9 units  were laid almost to DPC and the materials were on site to complete the brickwork these units.

The site is clean and tidy with a good standard of work being completed. The site has been laid out to best maximise the services and to allow for future construction of phase 2, and a planning application is being drafted for phase 3 which will further enhance the value of the site if accepted.

Projected returns

Fixed Return Debt Investment 
  • 6 Month Term
  • Bond Issue: £200,000
  • GDV: £5,018,000***
  • Loan: £200,000*
  • Maximum LTV: 65%**
Issuer: CL Number Twenty Six Limited
  • Number of Bonds available: 400
  • Value of Each Bond: £500
  • Security: 1st Charge and Personal Guarantees
  • Projected Fixed Return : 12% p.a., minus basic tax rate deducted at source
* Excluding Fees and Interest 
** Including Fees and Interest
*** GDV is based on a RICs valuation. 


Income is not guaranteed and there is a risk of capital loss. Please see pages 9 and 10 of the Investment Summary for further information about risks

Property name: Commercial Crescent

Address: Ladybank, Fife

Property type: Flats and Houses

Property age: New Build

Market type: Young families and professionals

Description: Ladybank is located about 37 kilometres (23 mi) north of Edinburgh, 23 kilometres (14 mi) southwest of Dundee, and 24 kilometres (15 mi) southeast of Perth. It is at OS grid reference NO 30 09, about 45 metres (148 ft) above mean sea level. It is situated in the Howe of Fife, a narrow low-lying plain that follows the course of the River Eden, known for its agriculture.

Local Property Market

Ladybank itself is a popular small historic town located within the north of Fife and boasts a mainline railway station, approximately 100 yards from this development, which connects to Dundee, Perth and Edinburgh. Built in 1847, the station may well be the oldest unaltered station in Scotland.

Together with the A92 which runs along the westeren edge of the town and connects to the M90 motorway, making it excellently placed for commuting. The Doctor's Surgery, Health Centre and Library are within 20 yards of Commercial Crescent, and local primary school, shops, bars and restaurants all within walking distance. 

Ladybank is also home to one of Scotland's best Golf Courses, an 18 hole open qualifying course of championship status and which also held a Jack Nicklaus v Steve Ballesteros golf match in July 1983. 

There is currently a shortage of properties for sale in the Ladybank area, in particular of new build and these properties will be the only new build modern homes in the village. Due to this ongoing shortage of quality housing and new homes coming onto the market, there is high anticipation from potential buyers.
   

Key Terms

Issuer:CL Number Twenty Six Limited registered in England and Wales with company number 11462953 whose registered office is at Lance Levy Farmhouse, Wildmore Lane, Hook, Hampshire, RG27 0HB
Amount400 Bonds of nominal value of £500 each
Target Interest Rate:Projected 12% per annum, simple interest (basic rate tax deducted at the source)
Interest PaymentAll accrued interest to be paid in one lump-sum on the Maturity Date
Default Interest Rate3% above the Interest Rate, but subject to recovery of the same under underlying Loan
Maturity Date6 months after allotment
Minimum Subscription1 Bond
Purpose
The proceeds of the Bond issuance shall be used by the Company to participate in a Loan as a lender to Ladybank Homes Limited to enable it to complete the development at Commercial Crescent, Ladybank, Fife
Documentation Bond Instrument and this Term Sheet
Governing LawEnglish


Summary of Projected Returns

Investment Period6 Months
Target Total Return6%
Target Annualised Return 12%
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. 

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.

We have given this project a score of A, which we believe reflects lower returns balanced against generally lower risk. You should judge the risk for yourself using the information provided and your own investigations.

 

CrowdLords Risk Rating

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:
Market Sensitivity – the less the return is impacted by changes in Market prices, the lower the risk
Cost Sensitivity – the less the return is impacted by any increases in cost, the lower the risk
Time Sensitivity – the less the return is impacted by any extensions to the time line, the lower the risk
Minimum Preferred Return – the higher the minimum preferred return as a proportion of the projected return, the lower the risk
Track Record – the greater the experience of the Developer, the lower the risk.


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

Scott Daly established the company 7 years ago, during which time they have gained good experience developing sites up to £6m of costs.
Prior to that he spent 4 years as an assistant site foreman for Taylor Wimpey and Bracken Lea Homes. He has experience managing all aspects of ground works, concrete works, drainage and landscaping. He is plant operator and has experience in procurement of plant and materials. He is also a qualified carpenter and joiner and he has a qualification in Construction Craft Appreciation.

Property details

Further Questions

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