122 London Road, Southborough is situated approximately 1 mile north of Tunbridge Wells town centre and fronts the A26 Tunbridge Wells to Tonbridge road. The property has excellent transport links; access to the motorway network is via the A21 two miles to the north which leads to the M25 J4. There are regular trains to central London via High Broom or Tonbridge stations which take approximately 40 minutes into London Charing Cross and Cannon Street. The property comprises a 3-storey Victorian end of terrace, mixed commercial and residential building. It is situated on the corner of London Road and Holden Park Road. The proposal is to convert the building into 3 self-contained, one-bedroom flats of 30m2 (approx) each under planning consent reference number 17/02331/PNOCLA. The borrower for this project is 122LR Ltd, part of the JVIP Group, a family business run by Richard and Peter Dabner. They are highly experienced developers with an excellent knowledge of the local area, having completed numerous projects within the vicinity. 122LR Ltd have already exchanged on the purchase of this property and will complete the purchase on the 13th March. The Dabners are also well known to CrowdProperty; they have borrowed and returned in full to us on two separate occasions. They are also currently constructing 2 new houses one mile away from this property, with a £460,000 loan from CrowdProperty, which is due to be repaid in January 2019. The purchase price is £225,000 and having obtained planning the RICS valuation estimates a value £275,000. The conversion works are estimated at £122,000 and the RICS view of the GDV of the completed project is £500,000. CrowdProperty has agreed to lend the developers £250,000: £157,000 towards the purchase of the property and £93,000 towards the conversions costs. This provides a 70% loan to value at purchase reducing to 50% loan to value at exit. The loan term will be 15 months, with the borrowers intending to sell the flats individually once completed. As always CrowdProperty will have first legal charge over the property.
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