Update from 05.01.2021 - Since conclusion of the contract, Borrower has had 2 payments according to schedule and both of them were paid on time. Furthermore, the Borrower has also made the payment due for the end of January, 2021.
After two stages of financing, borrower has done construction according to plan and plans to register the building in the Land book at the end of January, 2021. Construction terms have not changed and the object is expected to be commissioned by end of July 2021.
This project provides LendSecured investors with an opportunity to finance the construction works of a single- family house located in the capital of Latvia - Riga. The funding target for this project is € 44 000 and this sum is expected 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 13%, LTV of 43%, loan term of 24 months, with monthly manner of interest payments.
The construction object consists of land plot of 602 m2 and a house of 98.2 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 € 88 000,00 have already been registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt free.
The current market value of the collateral estimated by a certified appraiser is € 103 000 with an assumed future value of € 130 000, upon the commission of the construction. Subsequently loan to collateral value ratio (LTV) is 43%. To provide an additional guarantee the owner of the collateral is providing a personal suretyship in the full loan amount.
The Borrower is a board member of a limited liability company, registered in Latvia and operating since 2008. The Borrower is a successful real estate developer and has a great track record. This is the second real estate development project done by the Borrower in 2 years with the guidance of LendSecured. The financing of the previous object (construction of two-family residential house) was offered for the private investors of LendSecured, who recovered their investments in the term of 6 months.
Similarly, as with his previous projects, the Borrower aims to repay the loan from the sale of the collateral.