This project provides LendSecured investors with an opportunity to finance an agricultural loan in the amount of € 5 100 secured by a first rank mortgage on the real estate “Kārkli”, located in Lēdurgas parish, Krimuldas region.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 24%, loan term of 24 months, with monthly manner of interest payments and full repayment of the principal at the end of the loan term.
The collateral consists of an agricultural land plot with a total area of 7.59 ha. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 10 200 will be 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 is estimated at € 20 870 subsequently making loan to collateral value ratio (LTV) - 24%. Even upon a forced sale, estimating that the real estate will be sold for 30% lower than the market value (€ 14 609), LTV will not exceed 50%.
The demand for agricultural land currently in Latvia exceeds supply and 25% of farmers are forced to rent the land, as there is none available on the market. The price of agricultural land plots in the parish of the collateral ranges from € 2 400 EUR per ha to € 2 750 per ha.
The Borrower is self-employed in agricultural sector and is engaged in cattle breeding and growing of vegetables. The funds will be used to obtain working capital for the season.
Borrower aims to repay the loan from incoming business revenues.