Important: Please note your capital may be at risk with Peer to Peer lending and your investments are not covered by the Financial Services Compensation Scheme (FSCS).
The borrower is an experienced property developer. This loan is to be used for the land purchase with additional funding for the development being provided under loan L69612. The land benefits from planning permission for two detached 3 bedroom, high-specification dwellings.
The gross loan is £196,700 over a term of 12 months on the F6 product which gives a return of 6.5%. 12 months interest payments are included in the advance and will be held on account for lenders.
Security is provided by way of a 1st legal charge and it is proposed that the build will commence immediately upon completion of the purchase of the land.
The purchase price of the security is £300,000 however the loan is based on the independent valuation of £281,000 (LTV 70%). The GDV for the development is £925,500 giving a LTV of 21.3% based on the GDV.