This project gives LendSecured investors and opportunity to finance the second stage of construction works of a residential house and a household outbuilding located in Rogu ceļš 2L, Jelgava.
The funding target for the second stage of the construction is € 21 500 and this sum is expected to allow the borrower to commission the construction works by the end of 2021. For the first stage of the project € 17 000 was raised, which allowed to pull in the heating system, build partitions and apply finish.
This investment opportunity will offer LendSecured investors to make a loan with an annual rate of 11%, LTV of 38%, estimated future LTV of 32%, loan term of 21 months, with monthly manner of interest payments.
After the second stage of construction, the overall sum issued against the mortgage of the collateral will be € 38 500.
The estimated market value of the collateral is € 100 800 with the future value of € 122 000, upon the commission of the construction and value upon a forced sale of € 70 600 (LTV 55%). 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.
In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 77 000 has already been registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt free.
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.