Update from 05.01.2021 - Since conclusion of the contract, Borrower has had 4 payments according to the schedule and all of them were made on time.
After two stages of financing, borrower continues construction according to the plan. Building has been registered in the Land book, pulled in the heating, put in floors and windows and is currently finishing the gray mount of indoors. Construction terms have not changed and the object is expected to be commissioned by end of May 2021.
This project gives LendSecured investors and opportunity to finance the second stage of construction works of a single-family house and an auxiliary building located in Zaļā iela 6, Varkaļi.
The funding target for the second stage of the construction is € 32 400 and this sum is expected to allow the borrower to commission the construction works by the end of the loan term.
LendSecured is giving an opportunity to invest in a construction project with fastly growing value and decreasing LTV. This project offers LendSecured investors to make a loan with an annual rate of 13%, LTV of 80%, estimated future LTV of 29%, loan term of 24 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 € 54 000.
The estimated market value of the collateral is € 67 000 with the future value of € 188 000, upon the commission of the construction. The construction object consists of land plot of 2005 m2 and a new residential building of 196.28 m2 and a new auxiliary building of 27.6 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 € 108 000,00 have already been registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt free.
Borrower is a self-employed person engaged in provision of construction services, which means that the borrower is responsible with his personal assets for the performance of the loan agreements. Construction is done by IK "K.H.R", registration No. 43602027683. The borrower has experience in the construction of a residential house with a resale at a profit. This is the second real estate development project done by the Borrower 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 6 months, when the borrower sold the real estate.
The borrower aims to repay the loan from the sale of the collateral or by refinancing in banking sector.