Development Update – November 2017

Please find below the latest updates on all our ongoing developments as of the end of October 2017.  There are also links to the latest images for earlier developments which gives you an idea of the progress that is being made.

Please note these updates are for keeping you informed on the progress of the development itself.  Most of our development loans have estimated repayment dates and are dependent on the development being complete and units sold, and a number also have more than one round of funding, repayable at different stages of the build.  For information on the estimated repayment date of the phases of development loans you are invested in, please refer to the investment pack you downloaded when you invested, and to the Development Loans Payment Schedule, also available on the project status page on the website.

HCD16 – Parkside Phase 1

We completed the purchase of this site first week of November.  The main contractor has been appointed and a pre-start meeting was held 7th November.

Detailed design including new kitchen designs have been carried out in the background pre-purchase and a physical start on site is due November 21st.

HCD15 – Buckton View

We have completed the purchase of this site 6th October. Our nominated builders, CPUK, are now fully appointed, have discharged the pre-start planning conditions and start work on the site week commencing 13th November subject to Local Authority sign off.

A re-work of the house designs to make the interior space work better has been completed and can be viewed by clicking here.

HCD14 – Old Library, Frodsham

Work commenced on the site 7th November with a full measured survey and strip out of the existing building.  A more detailed programme of work is currently being prepared by the design team.

HCD13 – Coppenhall

After much discussion with the local council, this development is now officially called “Springfields”.  The postal address will be: 1-10 Springfields, Coppenhall Way, Sandbach. This name will be used in marketing material for the sale of the properties.

Works are progressing well at this development.  Our main contractors have reported a one-week delay (this was due to the engineer’s drawings and it is expected this time will be recovered).  We have received a detailed programme that shows handover of plots one & two pre-Christmas allowing us to present the show house before the end of January 2018 (this was originally projected for the end of March 2018).

Plots 1&2 have the roof completed, windows on site ready for install, and the staircases are in the process of being constructed.

Plots 3&4 are in the process of being roofed.

Plots 7,8,9&10 have foundations complete and are being concreted.  Timber frames have been produced and will be delivered to site week commencing 6th November.

View the latest Coppenhall photos

View latest site video

View the houses for sale on Rightmove

HCD10 – Bollin Heights

The development at Bollin Heights is entering into its final month before we anticipate being able to release the first set of apartments to buyers. The pictures attached to this update include the final windows and doors going into phase 1 and the decorated communal areas. We have some work to do on the external areas, including the entrance gates and parking areas, but our contractor has this all in hand. We are still very much targeting to serve practical completion notices for circa 15 apartments in December.

Our progress with the extension has been steady (see photos on the link below), as we were awaiting a re-design of steel work from our appointed structural engineers; however we now have all necessary information to finish the extension. We still anticipate that we will be completely off site by April 2018.

Sebastians (our estate agent) have continued to receive enquiries for the remaining plots and have had multiple viewings by the same buyers, so we hope to have further sales completed soon. Currently we have 23 out of 32 of the apartments either exchanged or reserved with exchange imminent.

Please note that investors will be repaid on a first in first out basis with phase 1 investors being repaid first.

View the latest Bollin Heights photos

HCD7 – Brundred Farm

We are currently raising investment for this project, as we plan to erect a new house on this site, plus demolish the old one and replace with a newer property. We are aiming to complete on the site purchase 24th November.

HCD5 – Bank Chambers

The Bank Chambers development is starting to shape up nicely, as you will see from the pictures linked to below.

The bathrooms are currently being tiled, kitchens are being fitted and doors are going on. Flats 2-7 are now about 80-90% finished and plots 8 & 9 are not far behind. We are currently progressing the necessary works to finish the communal spaces and flat 1. We are pushing our contractor to ensure the first set of purchasers can move in by Christmas, however we do not want to compromise on quality so we are mindful of this as wish to maintain the qualities of this lovely old building.

View the latest Bank Chambers pictures

HCD4 – Gratrix Park

We have now handed over a total of 5 properties at Gratrix Park. The owners of numbers 10 – 14 are all either moved in or are about to. We have scheduled another 5 properties to be handed over before Christmas including plots 1-4 and plot 16. Our project programme still has all contractors completely off site in February.

Our contractors are keeping in touch with buyers and ensuring their expectations are managed with regards to moving in dates. We have 14 properties exchanged on, 2 more are anticipated to exchange week commencing 14th November and the remaining plots are all reserved through either Jordan Fishwick and Sebastian’s estate agencies. We anticipate having all plots exchanged on by mid-December.

The pictures linked to below show the next set of finished kitchens and also the finished detached properties about a week before handover on plots 11 & 10.

We have already started paying out the earlier investors in this development, and will continue to do so on a first in first out basis as sales are completed.

View the latest Gratrix Park photos.

HCD3 – The Woodlands

We are now in our 6th month on the build and progress has been pleasingly steady. We now have all 28 foundations in for the houses and blockwork progressing well on the first 13 units.

The show house is now coming together windows have been installed this week, so it’s possible to see how the buildings will look when complete.

We plan to have a soft opening of the show house this side of Christmas and a grand opening in early January which we hope will progress off-plan sales. The new hoardings will soon be erected, which should help make the entire site a more appealing prospect.

We believe the internal specification will impress potential buyers when they can view the show home, and with Help to Buy as a marketing tool, and the houses starting at £172,000 in a gated development, we hope that these properties will be an attractive proposition for home buyers, especially as there is an undersupply of houses in this area.

Our preferred estate agent Sebastians has started to book in appointments for viewing the show house in January and there has been an encouraging amount of interest to date.

View the latest Woodlands site photos

View the latest CGIs of proposed buildings

HCD2 – Alderley Edge

Number 10 Alderley Edge has progressed well over the last month. We are now up to the final floor and as you can see from the pictures linked to below the views from the penthouse apartment are rather impressive (or would be if the weather wasn’t being particularly Manchester like on the day we took the photos). We have had to have the steel roof re-designed and our contractor is trying to expedite the fitting process of this by incorporating timber trusses into the roof and omitting some of the steel.

Our appointed interior designer has been carrying out some extremely impressive work on aiding us in the sourcing of kitchens, bathrooms and the overall finishing of the apartments, so we are confident they will surpass expectations.

Sebastians are still receiving regular enquiries for sales and we trust once the build has progress further there will be commitment to buy.

We are feeling quite excited about how the buildings will look when complete. The development is scheduled to be finished in March/April 2018.

View latest Alderley Edge photos

HCP156 – Station Road, Marple

We have had two offers on the property since our last update. We have accepted one of them. Solicitors and surveyors have been instructed.

 

October Peer To Peer & Development Performance Stats

October 2017 Summary Peer To Peer Secured Loans & Development Finance Stats

October 2017 summary and monthly statistics can be seen below for our peer to peer and development loans.

Development and Bridging Data 2015 2016 YTD 2017 Cumulative @ 31/10/17
Actual default rates 11.1% 25.0% 21.4% 21.3% *See note below
No of loans completed 9 31 62 102
Total value of loans completed £2,312,074 £16,095,000 £21,759,700 £40,166,774
Average loan period (months) 11 11 8 9
Average loan size £256,897 £519,194 £350,963 £393,792
No of loans due to be redeemed 9 24 14 47
No of loans redeemed on time 8 18 11 37 78.7%
No of loans redeemed late 0 4 0 4 8.5%
No of loans in default 1 2 3 6 12.8%

*Note- Actual default rates based on redeemed loans with an 8 week tolerance threshold.

You can find all our latest investments by clicking here.


View our Property Investments

Performance Statistics: October 2017

Performance Statistics: October 2017

Please see below for our repayment stats for October 2017.  These list total dividends, interest and any capital repayments made in that month covering our B2L investments, development and P2P loans, as well as the year’s returns to date. You can also see our total cumulative returns from 2013, which you may also find helpful to know.

October 2017

  • Projects and loans paid out against = 30
  • Total value of dividends and interest paid = £153,220.52
  • Total value of capital repaid = £1,296,000.00
  • Total number of investors paid = 935

Total for 2017 So Far

  • Projects and loans paid out against = 243
  • Total value of dividends and interest paid = £1,178,783.91
  • Total value of capital repaid = £7,288,307.39
  • Total number of investors paid = 7,048

Cumulative (from January 2013)

  • Project paid out against = 677
  • Total value of dividends and interest paid = £2,314,408.91
  • Total value of capital repaid = £12,294,027.39
  • Total number of investors paid = 15,546

 


To find out more about investing with The House Crowd, you can register with us by clicking on the purple button below. Alternatively, take a look at our current property investment opportunities by clicking the blue button! Either way, we’re always here to answer your questions in any way we can.

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Frazer’s blog – 15 million people are not paying into their pension

A recent FCA report stated that 15 Million people are not paying into a pension

The whole UK financial services industry and those parts of government that influence it should be ashamed.

Just how is it possible that an advanced economy such as the UK can have around 15 million adults who are not saving for their retirement?

I believe the entire state pension scheme is nothing more than a huge Ponzi scheme that is on the verge of collapse and people must take control of their own future well-being. There is something seriously wrong in a country that does so little in terms of financial education and simultaneously makes it prohibitively expensive for people to acquire proper advice. With the rise of the alternative finance industry, fin tech entrepreneurs have shown it is possible for people to take control of their finances and get better results than traditional financial institutions ever provided for them. More and more it is the new fin tech companies that are offering people the simple, easy to understand investment options they want in order to give them the ability to grow their savings at a decent rate with a healthy level of security.

For example, over the last 2 years The House Crowd have paid our investors an average return of 9.03% on peer to peer loans with no capital lost.

To learn more about how you can provide for your financial future by making property backed loans or investing in property via crowdfunding order your free PDF copy of  The Alternative Guide to Property Investment

 

 

 

 

 

 

Frazer’s blog – how our peer to peer lending process works

Hello

Take a peek behind the scenes to discover how our loan process works

This month (September 2017) several bridging loans were redeemed – some of which were repaid on time and one of which was not, which meant investors, whilst waiting patiently for the borrower to repay, received a rate of 12% pa whilst the loans were in default. One investor received over £27,000 in interest which he has now reinvested along with his original capital.

So, I thought it was a good time to explain a little more about how our bridging loan process works and all the hard work our bridging team do to deliver a very attractive return to you including, if necessary, dealing with any defaults.

This is Charlotte – who has worked at the House Crowd since January 2015:

She undertakes the initial review of loans that come in from brokers and our HCF website.

If they pass our underwriting criteria she will send to Jane, our specialist property lawyer who we have been working with now for over five years – she’s an ex UK Kickboxing champion by the way. We love Jane (well, we have to – she’s super tough).

Jane will do some initial checks and analysis, discuss with Charlotte and decide whether we want to accept the loan and, if so, on what terms. If its above £350,000, or has complications, Charlotte compiles a summary for Lewis and me to review and the four of us discuss and make a joint decision as to whether we proceed.

If we decide to proceed, the borrower then pays a commitment fee and survey fee. We conduct in-depth analysis of each borrower’s financial position, assessing their credit history, undertaking comprehensive identity and fraud checks, and making sure we’re confident in an ‘exit’ (i.e. that they’ll be able to pay back the loan).

A RICS survey is instructed and the legal due diligence begins. We also only lend at a maximum ‘loan to value’ ratio of 75%. In other words, a £750,000 loan would have to be secured against a property worth £1 million – giving a substantial 25% cushion against any fall in the value of the property.

This is a team effort including Charlotte, the staff at Jane Hartley and our introducers.

If you would like to see our underwriting processes in more detail you can view them here: https://www.thehousecrowd.com/contents/p2p-underwriting-procedures.

If everything is looking good we will start to raise funds at some point during this process. However, there is still a risk that at the 11th hour we will uncover something that either delays the loan or means we do not consider it prudent to continue in which case we would pull out and return investors’ money. This is an inconvenience for all involved but it’s clearly better than taking an unwarranted risk with your money.

Simultaneously with making the loan, our solicitor registers the legal charge at the land registry so the property cannot be sold or further encumbered without our permission.

Once the loan is made, we keep in regular contact with the borrower to see what progress they are making with their exit strategy. In most case the loans redeem on time or even early, but in some cases the borrower does not repay on time.

Repayment by the borrower is something beyond our control.

If this happens, our only recourse is to issue a default notice and begin legal proceedings.  The borrower is at liberty to continue trying to sell or refinance in order to repay and we will keep in regular contact with them, but we cannot force them to do anything.

Once the legal process starts, we are at the mercy of the courts and it can take several months to get possession and then additional time to sell the property to recover what our investors are owed.

This is not ideal but it is the nature of the bridging industry. People are paying a high rate of interest as they have limited borrowing options and loans are sometimes not repaid on time. This something you need to accept before you make a peer to peer loan. If you want the certainty of being able to access your money exactly when you want it then a simple savings account may be a better option for you. But, of course, they will not pay anything close to the returns a peer to peer loan offers.

So, all investors must accept that repayment dates can vary but in return you are earning an excellent interest rate during the agreed loan period and a very attractive 1% a month (12% p.a.) whilst it is in default.

To give you an example one loan which redeemed this month (Westminster Gardens) was repaid 138 days late. We repaid investors the £353,000 capital invested plus an overall interest rate of 9.8% p.a. We had a lot of happy investors.

Jane has kindly drawn up flow charts of how the default process works for commercial and residential properties so you have a better understanding. Just click on the below links for further details.

Flowchart Recovery Commercial Property

Flowchart Recovery Residential Property

September Peer To Peer & Development Performance Stats

September 2017 Summary Peer To Peer Secured Loans & Development Finance Stats

September 2017 summary and monthly statistics can be seen below for our peer to peer and development loans.

Bridging Loans 30/09/2017
  Net
Total Amount Lent £24,201,670
Total Returns Paid £778,423
No of Loans 80
No of Loans Repaid 27
Average Loan Period 9
Investor Capital Lost 0%
Average Loan Size £299,384
Average Loan to Value 67%
Average Interest Rate Paid 9.03%
Development Loans 30/09/2017
  Net
Total Amount Lent £14,895,571
Total Returns Paid £164,259
No of Loans 21
No of Loans Repaid 8
Average Loan Period 10
Investor Capital Lost 0%
Average Loan Size £709,313
Average Loan to Value N/A
Average Interest Rate Paid 9.80%

You can find all our latest investments by clicking here.


View our Property Investments

Performance Statistics: September 2017

Performance Statistics: September 2017

Please see below for our repayment stats for September 2017.  These list total dividends, interest and any capital repayments made in that month covering our B2L investments, development and P2P loans, as well as the year’s returns to date. You can also see our total cumulative returns from 2013, which you may also find helpful to know.

September 2017

  • Projects and loans paid out against = 15
  • Total value of dividends and interest paid = £77,384.42
  • Total value of capital repaid = £400,000.00
  • Total number of investors paid = 407

Total for 2017 So Far

  • Projects and loans paid out against = 216
  • Total value of dividends and interest paid = £1,025,563.39
  • Total value of capital repaid = £5,592,307.39
  • Total number of investors paid = 6,113

Cumulative (from January 2013)

  • Project paid out against = 650
  • Total value of dividends and interest paid = £2,161,188.39
  • Total value of capital repaid = £10,998,027.39
  • Total number of investors paid = 14,611
  • Actual Default Rates 20.0%*

*Development and bridging data. Based on redeemed loans with a 8 week tolerance threshold.


To find out more about investing with The House Crowd, you can register with us by clicking on the purple button below. Alternatively, take a look at our current property investment opportunities by clicking the blue button! Either way, we’re always here to answer your questions in any way we can.

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Development Update – October 2017

Please find below the latest updates on all our ongoing developments as of the start of October 2017.  There are also links to the latest images for most of the developments which gives you an idea of the progress that is being made.

Please note these updates are for keeping you informed on the progress of the development itself.  Most of our development loans have estimated repayment dates and are dependent on the development being complete and units sold, and a number also have more than one round of funding, repayable at different stages of the build.  For information on the estimated repayment date of the phases of development loans you are invested in, please refer to the investment pack you downloaded when you invested, and to the Development Loans Payment Schedule, also available on the project status page on the website.

HCD16 – Parkside Phase

Fund raise is well under way for acquisition.  In the interim we have been finalising specification, materials and programme with our Contractor and will be in a position to sign contracts as soon as we complete.

HCD15 – Buckton View

Completion of the site purchase occurred on Friday October 6th.  We have finalised the contract price and documents have been issued to our main contractor for execution.  Detailed design will commence next week with a start on site expected by the end of November.  In the interim we will be satisfying pre-start planning conditions, agreeing materials and placing orders for services.

HCD14 – Old Library, Frodsham

We have completed the purchase and also finalised the specification and appointed our main contractor.  A start on site is imminent and we will be able to provide a detailed programme during our next update.  Following local press coverage we have had strong interest in the project with three potential purchasers waiting to see a start on site.

HCD13 – Coppenhall

As of 4th October the first floor has been constructed for plots 1 & 2 with the roof expected to go on by the end of the week.  Plots 3 & 4 foundations are complete and the slab has been poured.  Timber frame will start erection next week!  Setting out of plots 7-10 has been done and foundations will be excavated next week.  We are aiming to have the show flats available Feb/Mar 2018.

View the houses for sale on Rightmove

View the latest Coppenhall photos

View latest site video

HCD10 – Bollin Heights

Bollin Heights phase 1 (the first 24 apartments) is now moving into its final programmed few months on the build. We currently have the roof off on apartments 26 and 27 and they will soon be back to being water tight. The extension is moving forward well (despite delays caused by brick laying contractors) after Kingstone found and appointed a new sub-contracting firm to build the super structure. The current programme shows the extension super structure being completed in November.

Legally we believed that we had a complete right of way to bring new services (Including water and electric) down into the building through the neighbouring property. This turns out to not be as black and white as we were advised, which now requires us to re-design a work around. We now will be using a water tank and pump system to service part of the building. This work should be complete within the next 5 weeks and we will then have all the essential services into the building ahead of first occupation. However, we are still negotiating the supply of fibre-optic broadband and removal of the bollards.

Sales have continued to progress and Sebastian’s estate agents are receiving plenty of enquiries; however they have suggested some fresh marketing would help to secure the sales of the final few properties, so we are currently arranging this.

See latest Bollin Heights photos

HCD7 – Brundred Farm

After considering all options we have decided that the best route is for us to develop the site ourselves into two luxury houses that local agents believe will sell for upwards of £1.3M each.

We are planning to launch the crowdfunding campaign for the project shortly.

HCD5 – Bank Chambers

We now believe we are into the last 8 – 10 weeks on site at Bank Chambers. We have just overcome a 6-month battle with Stockport building control over the initial notice for building regulations, which has now been approved. However, on top of this being a generally difficult build partially due to the listed status, this has caused a completely uncontrollable level of delay. We were also let down at the last minute by our preferred roofing contractor meaning we had to delay stripping off the roof and finishing the two attic flats.

On a more positive note we are starting to see the flats take shape and they are looking fantastic. The contractors are working extremely hard and being meticulous about the sensitive final finish for this listed building.

The below pictures show that this project is moving into the final stages.

See latest Bank Chambers photos

HCD4 – Gratrix Park

Two families have now moved into Gratrix Park and both have declared themselves extremely happy with their new homes. We are making an effort to now deliver plots 10, 11 & 14 within the next 3 weeks. We have revised the time frame on the remainder of the project, which will ensure we keep the same level of quality up with the new homes. Realistic time frame for this project will mean we will be off site by the end of February 2018.

The internal project team working on this development are doing a rigorous process of pre-snagging & checking of the final finishes post sign off from the building inspector and warranty provider.

The below pictures show another a mixture of plot 13 & 14, which are the first two semi-detached properties that will be completed.

View latest Gratrix Park photos

HCD3 – The Woodlands

The build programme is on schedule and the show house should be ready in early January. Due to the Building Control and Yorkshire water not accepting the initial design for the site drainage, we have had to re-design it, which has increased costs; however we believe this issue is now pretty much resolved, so shouldn’t further slow progress.

We have had our help to buy application accepted for these properties, and as before we are selling all houses freehold, which will hopefully attract further buyers. However, the key to the sales in Rotherham is the show house, which cannot be built until all utilities and services are in place.

View the latest Woodlands photos

HCD2 – Alderley Edge

The development at Alderley has stalled slightly over the last few weeks, as the steel work contractor we use for Alderley Edge was finishing off the roof at our Bollin Heights development, which has led to a delay of about two weeks with regards to Alderley Edge. However, the work is due to commence on Monday 9th October.

We have an application in for two garages to be added, which will make a total of four and we have the support of the local planning authority for this. The decision on this is due in 5 weeks. We have appointed an interior designer to assist with the finishing of the communal areas and also advise on kitchens and bathroom design.

The project is still on track and we do have significant sales interest, however our sales agent has advised that finishing the externals will be the key to securing the final sales.

One of the properties is currently reserved.

Those investors in Phase 1 and Phase 2 of this development who wished to exit the investment have been repaid their capital and interest.

The pictures below show the external progress.

View images of the Alderley Edge development

HCP156 – Station Road, Marple

We have had a few positive viewings, who gave good feedback on the house, but unfortunately they have only just put their properties on the market and until they receive an offer we cannot move forward with any of the potential buyers.

We are also looking at marketing the property with an online sales agency, on a no sell no fee option, and we will then attend the viewings to get a better understanding of buyer’s expectations/views.  This will also reduce agency costs.

House Crowd News – September 2017

Hello

“I love the British Summer. It’s my favourite day of the year.”

And, luckily, we chose that day to have our staff family fun day with fantastic woodfired pizzas.

Click here if you would like to see our team (and kids and dogs) enjoying themselves.

Ignoring the awful weather that made up the rest of August, it was another surprisingly bright month at The House Crowd, despite the entire world seemingly being on holiday for most of the time.

We completed more sales on Regent Street (which was our first ever new build development) and all investors have now been paid out with the interest as stated.

This is an email we received from John Gurnhill, in Nottingham, who has been with us for several years and was one of the investors in Regent Street:

“Thank you for the 15.97% total return on my peer to peer loan. I have reinvested most of the capital and interest into a further short term loan. Keep them coming. Thank you”

It’s always nice to know people appreciate what we do.

I was reflecting during the month on what we have achieved over the last five years. Our proudest achievement is the community of loyal investors we have built up – 96% say they would recommend us to friends and family (and many do)… and it’s always nice to meet people face to face, as we did in Bristol recently, but purely in terms of fundraising I realised that…

  • In 2013, we passed £1M in funds raised.
  • In 2015, we had our first £1M month
  • In 2016, we had our first £1M week
  • In August 2017 we almost (but not quite) had our first £1M day.

We fell short by just a few thousand pounds, but it really struck home how incredible it is that we have created such an attractive and popular investment model. It has far surpassed what I originally imagined. So a huge thank you to all those who continue to support us and to our client account/ investment team: Clarissa, Nigel, David and Damian who have helped build strong relationships with our clients. They do a fantastic job so feel free to contact them if you ever have any questions – they are always happy to help. David heads up our London office and is available to meet face to face for those who would like to do so.

We will be having an open day on November 1st where you can come in and meet us at our offices. Email invites to follow next week.

Anyway, back to business – if we almost reached £1M in a single day in August I reckon the team can definitely do it in September – so I will be cracking the whip over the next few weeks – hee, hee, hee!

It should be possible as we have at least two top notch development projects being released over the course of the month plus another round of funding for No. 10 Alderley Edge. The webinars we have done for past developments were such a success that we will be doing them for most developments now. If you missed the Micklehurst Road webinar you can access a recording of it here.

The webinar for our next development is scheduled for Wednesday 20th September at 7pm. Click here to register.

Anyway that’s all from me this month. Now everyone else is back off holiday, Clarissa and I are off on ours. Yippee!

Performance Statistics: August 2017

Performance Statistics: August 2017

Please see below for our repayment stats for August 2017.  These list total dividends, interest and any capital repayments made in that month covering our B2L investments, development and P2P loans, as well as the year’s returns to date. You can also see our total cumulative returns from 2013, which you may also find helpful to know.

August 2017

  • Projects and loans paid out against = 36
  • Total value of dividends and interest paid = £115,288.91
  • Total value of capital repaid = £475,000.00
  • Total number of investors paid = 1,074

Total for 2017 So Far

  • Projects and loans paid out against = 201
  • Total value of dividends and interest paid = £948,178.97
  • Total value of capital repaid = £5,592,307.39
  • Total number of investors paid = 5,706

Cumulative (from January 2013)

  • Project paid out against = 635
  • Total value of dividends and interest paid = £2,083,803.97
  • Total value of capital repaid = £10,598,027.39
  • Total number of investors paid = 14,204

To find out more about investing with The House Crowd, you can register with us by clicking on the purple button below. Alternatively, take a look at our current property investment opportunities by clicking the blue button! Either way, we’re always here to answer your questions in any way we can.

Register Now for more Info

View our Property Investments