Latest Valuation
£575,000
ROCE
%
Selling Agent
Sourced Uxbridge

£1.5M – £1.7M GDV – New Build Development in Bedfordshire

This site has a build team and a project manager already in place.
Guide Price
£575,000

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Key Features

  • New build development
  • Sell off-plan or retain and rent
  • Up-market area - scarcity of apartments
  • Postcode - quick to sell being a hot sellers' market
  • Build team in place
  • Project manager in place

The Property

Sourced are excited to present this re-development site, with full planning consent for 6 spacious new-build apartments.

4 x 2 bed, 2 bath and 2 parking spaces.

2 x 3 bed, 2 bath and 2 parking spaces.

Land held in SPV.

Site has been demolished already, so planning is active to perpetuity, ie. no more expiry date as cleared site.

There will be no need to incur further costs to get the site cleared – this has been done on the vendor’s expense.

Construction drawings has yet to be done by an engineer.

Freehold.

Most of the conditions have been discharged in order to start work.

The remaining conditions are to be discharged as the scheme progresses.

The net accommodation extends to c.5112 sq ft, together with 15 parking spaces (includes 3 visitor spaces).

Planning Information

http://edrms.bedford.gov.uk/PlanningBrowse.aspx?id=WjSIHvcC4kfeDRIq7Pg0TQ%3d%3d
Bedford Council Ref: 16 01397 FUL

The Plan

Land with planning to build a block of 6 flats. Demolition of existing building and erection of 6 residential units.

Redevelopment Site at the Old Maltings Bedford Rd, Bedfordshire, Milton Ernest, MK44 1RJ.

Buy, build, sell off-plan to young families or retain & rent.

Properties are in high demand in this postcode but months from February - May would be the ones to avoid. All other months are perfect times to sell.

Redevelopment site with full planning and consent for 6 spacious new-build apartments, located in a highly sought after village.

Summary:
- Fully consented development site.
- Popular village location.
- Close to local amenities.

No requirement for affordable/social housing.

A non-material amendment application has been approved recently to add another 2 more bedrooms in the loft. So 2 x 3 bedroom flats in the top floor.

Alternatively, the loft can be used for storage areas or possibly an office due to the awkward shape.

GDV: £1.5M - £1.7M

Purchase price: £575,000

Manager: £29,750 including VAT JV

Build: £595,000

Manager: £29,750 including VAT JV

Project management: £29,750

Manager: £29,750 including VAT JV

Sourcing fee: 2% / £11,500

SDLT: £2,875

Survey: £1,000

Manager: £29,750 including VAT JV

Purchase legals: £1,000

CIL: £0

S106: £0

Total: £1,216,125

Financed buyer.

We have lenders in place ready to finance.

Please note the final finance offered will be based on your personal circumstances.

The figures provided, are for typical lending on this type of property.

Purchase price: £575,000

Development: £595,000

Development finance to purchase:

60% of the purchase price

Loan: £345,000

Deposit: £230,000

100% of development costs: £595,000

Total loan: £940,000

Finance costs example;

Arrangement fee: 1% = £9,400

1% PCM over 18 months: £169,200

Total: £178,600

Please note:

- The finance costs is not an exact science for the following reasons.

- The funds will be paid in stages, so you will not lend all the money from day one.

- You may well be able to obtain development finance, at the experienced developer level of 7% pa.

- There may be additional costs such as, early redemption penalties.

- The interest repayments can be paid monthly or rolled up, meaning paying back post sales.

- The arrangement fee may well be 2%.

- There may be additional exit fees.

bbr

Total cash in:

Purchase price deposit: £230,000

Project management: £29,750

Sourcing fee: 2% / £11,500

SDLT: £2,875

Survey: £1,000

Purchase legals: £1,000

Total cash in: £276,125

Post sales costs:

Sales legals £6K including splitting titles

Sales agents: £15,000 - £17,000

Accountancy: £1,500 including VAT

Corporation tax

Furniture to dress the show flat

Limited risk exposure and management:

GDV: £1.5M - £1.7M

Confirmed by local estate agents depending on finish, sold comparables and properties currently on sale in the immediate vicinity.

Development: £595,000 including VAT with 10% contingency built-in.

Manager: £29,750 including VAT JV

Price: £110 per sqft

Build term 12 months.

An experienced local developer has been sought to give a price per sqft subject to detailed tender.

Alternatively, you can use your own team.

The duration is estimated to be 12 months.

Introduction to the main contractor, can be made upon request along with a site visit to talk through the scheme.

The price is subject to some slight changes when going to detailed design and tender, and the developer will provide the full renovation schedule of works and specifications.

A detailed schedule providing a breakdown of costs and timelines will be supplied.

Project manager: £29,750 including VAT JV

5% of construction costs. You have the choice to use your project management team.

The project managers job is to take care of the development and deliver the job on time and within budget, subject to unexpected circumstances arising.

Manager: £29,750 including VAT JV

Sales agents fee: £15,000 - £17,000 including VAT, depending on GDV manager £29,750 including VAT JV.

1% of GDV.

We have already in place a local estate agent who will market to sell off-plan.

To achieve the best possible price, it would be prudent to market the properties early into the build process.

To engage with potential buyers and encourage them to invest both financially and emotionally to the development, by giving them options to choose kitchens/bathrooms/flooring etc (within a set budget) so the end-user feels like they are effectively building their own home.

Sourcing fee: £11,500

Acts as the reservation fee and released on exchange.

Fully refundable if legal issues with title discovered that were previously undisclosed, surveyor down values or seller withdraws.

SDLT: £2,875

0.5% as land owned in an SPV.

Purchase & sales legals.

We can recommend solicitors if need be.

Rental values.

Provided by a local agent.

The development opportunity is sold as seen.

All the numbers provided are a guide only based on professional opinions and should not be solely relied upon.

You must do your due diligence and seek professional advice if necessary.

The Location

Very good commuter on rail for London Midlands.

Very good schools and shops.

The site is highly accessible via walking, cycling and public transportation.

Milton Ernest is a village and civil parish in the Bedford Borough in Bedfordshire, England, and is about 5 miles north of Bedford itself.

Milton Ernest has several local amenities that include a lower school, garden centre, hotel / public house / restaurant, a church and village hall.

It is also within the catchment area for the exceptional Sharnbrook Upper School.

It offers easy access to Bedford Town Centre, railway station and Harpur Trust schools.

Average estimated value for a house in MK44 1RJ

£418,970

Overall, sold prices in MK44 1RJ over the last year were 18% up on the previous year and 25% up on the 2005 peak of £400,000.