Update from 05.01.2021 - Borrower has received loan in the middle of December and his first payment according to schedule is due 15.01.2021.
Until now, funds have been used to buy bitumen shingles, pavement, heat boiler, water drains, foam, tiles, stairs, etc.
This project gives LendSecured investors an opportunity to finance construction works of a residential house and a household outbuilding located in Rogu ceļš 2L, Jelgava. The construction are planned to be financed in 2 stages, provided that the Borrower fulfills the obligations set out in the agreement.
The funding target for the first stage of the construction is € 17 000 and this sum is expected to allow the borrower to pull in the heating system and build partitions. The second stage of the construction is estimated to demand a financing of € 21 500, in order to allow the borrower to commission the construction works by the end of 2021.
This investment opportunity offers LendSecured investors to make a loan with an annual rate of 11%, LTV of 22%, loan term of 24 months, with monthly manner of interest payments. The construction object consists of a land plot of 2326 m2 and a new residential building of 119.50 m2 and a new household outbuilding of 35 m2 under construction, which is also given as collateral.
The current market value of the collateral estimated by a certified appraiser is € 78 300 subsequently making loan to collateral value ratio (LTV) - 22%. The value of the real estate upon a forced sale is estimated at € 58 700 (LTV 29%), but the future value - € 123 000.
At the end of the second phase of the project, the amount of the loan issued will be € 38 500, which will be 31 % against the future value of the object.
The borrower is a self-employed person in the construction industry, which means that borrower is responsible with his personal assets for the performance of the loan agreements. The Borrower aims to repay the loan from the sale of the collateral.
Loan is secured with a first-hand pledge on the collateral Rogu ceļš 2L, Jelgava, cadaster number 0900 024 0437 in the amount of € 77 000.