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

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

Bartlett House, Growth Bonds

Bartlett House, Kennington Road


£11,000

Funded

£260,000

Total Fund

£150,000 minimum raise

Term (Months)
60

Target Interest Rate (p.a.)
6%

Strategy
Buy-to-Let

Minimum Investment
£1,000

Growth Bonds
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


  • 60 Month term. Min Investment £1000

  • 2nd Charge, Target 6% p.a. 
  • +7.2% p.a. projected profit share
This is an opportunity to invest in a newly built block of 7x two bed apartments in Oxford.

The development has been supported by CrowdLords funding and is due to completed in June 2019. Once completed, the Developer would like to retain the properties and is offering Growth Bonds to sit alongside her capital and a 75% mortgage.

Growth Bonds are bond instruments secured via a second charge over the property and in addition, for every bond purchased, investors are eligible to subscribe for Preferred Redeemable Share, for a nominal payment of £0.10, which entitles them to a share of any capital growth at the end of the term.

This is a 5 year investment, but Investors will be offered the opportunity to have their Bonds redeemed as long as replacement investors can be found, enabling some liquidity. At the end of the 5 year term, holders of Preferred Redeemable Shares will receive a share of 40% of the capital growth over the investment term. Investors will be given the opportunity annually after 2 years but those that decide to leave early will not be entitled to retain their shares.

This modern block of apartments has been designed and developed by experienced Developer and LandLord, Kate O’Donovan. Now that the development is nearing completion Kate would like to retain the block and operate it as a rental property.

Due to some delays early on in the project, the net profit is short of what was planned and so Kate is looking for investors to take part in a loan to the SPV to sit behind a 75% mortgage.

The property was conceived from the outset to be environmentally friendly, creating very attractive rental units very close to Oxford Brookes University, Oxford University and the BMW Mini plant. It also has excellent transport links providing easy access to the M4 and the M40 via the A34.

Each of the two bed apartments has their own outside space - either a garden or a balcony - along 
with dedicated parking spaces. Six of the apartments have en-suite bathrooms to both bedrooms and the quality of fit, finish and furnishings will be appropriate for professional tenants.

Kate operates other Buy-to-Lets in Oxford (some of which she developed herself) and so has a good working knowledge of the rental market, along with plenty of local contacts, for lettings and maintenance, built up over the last 20 years.

Projected returns


Fixed Return Debt Investment 
  • 60 Month Term
  • 2nd Charge Loan: £260,000
  • GDV: £2,029,000*
  • LTV at start: 87.8%
  • Projected LTV at exit: 73.9%**
Issuer: CL Number Twenty Seven Limited
  • Number of Bonds available: 260
  • Value of Each Bond: £1,000
  • Security: 2nd Charge
  • Target Interest Rate : 6% p.a., minus basic tax rate deducted at source
  • Each Bond is eligible to subscribe for a Preferred Redeemable Share
* GDV is based on a RICs valuation
** Exit LTV assumes an average annual price increase of 3.5%


Income is not guaranteed and there is a risk of capital loss. Please see pages 14 and 15 of the Investment Summary for further information about risks.

Property name: Bartlett House

Address: Kennington Road, Oxford, OX1

Property type: Flats 

Property age: 2019

Market type: Young professionals

Description:  Modern block of 7x, 2 Bed apartments with onsite parking.

Local Property Market


Oxford is a university city in south central England and the county town of Oxfordshire. With a population of approximately 155,000, it is the 52nd largest city in the United Kingdom, with one of the fastest growing populations in the UK, and it remains the most ethnically diverse area in Oxfordshire county.

The city is 51 miles (82 km) from London, 61 miles (98 km) from Bristol, 59 miles (95 km) from Southampton, 57 miles (92 km) from Birmingham and 24 miles (39 km) from Reading.
The city is known worldwide as the home of the University of Oxford, the oldest university in the English-speaking world. Buildings in Oxford demonstrate notable examples of every English architectural period since the late Saxon period.

Oxford is known as the "City of Dreaming Spires", a term coined by poet Matthew Arnold. Oxford has a broad economic base. Its industries include motor manufacturing, education, publishing and a large number of information technology and science-based businesses, some being academic offshoots.

Although it currently remains unaffordable for most buyers, the demand for rental properties in and around Oxford is still high. As the private rented sector grows, Oxford may be one of the cities that benefits the most from Government regulations that favour tenants.

   

Capital Investment


Purchase Price £2,029,000
Stamp Duty £-
Legal & Professional Fees £20,000
Furnishings £21,000
Contingency Allowance £10,000
CrowdLords Fees £13,000
Total Investment £2,093,000
Less Mortgage Finance -£1,521,750
Growth Bonds * £260,000
Landlord Equity £311,250


 

Projected P & L


Gross Rental Income £108,257
Gross Rental Yields 5.3%
Accounting Costs £1,200
Mortgage Interest -£55,544
Growth Bond Interest -£15,600
Management & Maintenance -£22,026
CrowdLords Admin Fee £5,200
Total Costs £99,570
Net Income Before Tax £8,688
Corporation Tax £1,651
Net Income After Tax £7,037

 

Projected Capital Return


Property Value* £2,409,816
Cumulative Capital Gain £316,816
Unused Contingency £3,277
Agents Fees -£24,098
Legal Fees -£8,400
Net Gains Before Tax -£287,594
Corporation Tax £54,643
Net Gains After Tax £232,957
Share of Net Profits Paid** 40%
Profit Distribution to Crowd Shares £93,181
Cumulative Capital Returns 35.8% = 7.2% p.a.

* Based on an average annual price increase of 3.5% p.a. The property will be subject to a new RICs valuation prior to the end of the term.
** Investors will have the rights to a share of 40% of the Capital Gain allowing for sales costs and tax. This is the equivalent to 0.154% of the value increase for each £1,000 bond.
 

Return Summary


Investment Period 60 Months
Target Total Income Return 30%
Projected Total Capital Return  36%


 

CrowdLords Rental 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:
Investment Period – the less the return is impacted by changes in Market prices, the lower the risk
Location & Market – the better the location, which can impact the market positively, the lower the risk
Micro Location – the better the surrounding area, the lower the risk
Level of Development – the less work required, the lower the risk
Landlord Track Record – the greater the experience of the Landlord, 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


                                                           

Following the refurbishment of her first three properties, which she sold within 3 days of marketing, Kate discovered that she had a passion and natural flair for creating beautiful homes. So, in 2003 she studied for an MSc in Energy Efficient and Sustainable Buildings (Sustainable Architecture) and since then has designed and/or built numerous project in and around the Oxford area.

Kate’s successful track record is due to both experience and education having run her own business since receiving an MBA from Imperial College, London University.

Kate trades as Hartmore Homes, designing and delivering beautiful and comfortable, high quality homes satisfying modern day lifestyle requirements within sustainable residential properties. She is also a highly experienced and conscientious landlord who has been managing her own property portfolio for nearly 20 years. She currently has a block of flats in the Cowley area, within the Oxford City LA, which she has retained for 15 years.

Over the years she has had a number of tenants renewing their AST annual leases for 5 years plus. There is a very high demand for accommodation in Oxford and Kate always has voids of less than one week between tenancies, in part because of the standard of the service she provides to tenants.

Property details


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