Jack Straws Castle, Hampstead - Phase A

Investment Summary

Overview – Investors in this opportunity will fund the equity release and the development of two four bedroom townhouses which will be completed to a high specification within the affluent North London area of Hampstead (referred to as "the Properties").

Term –  The estimated term for this investment is 22-25 months. If the loan is not repaid by the end of the estimated term, returns will accrue on investments for a further 11 months from the end of the estimated term up until the hard stop date (July 2025). 

Plan – The developer will use this phase of funding as equity release and later phases of this opportunity are planned to launch on the platform over the coming months and these will provide funding for the development costs. They already own the site and planning permission has been granted to construct two four bedroom townhouses. 

Location –  The Properties are situated on North End Way in the affluent north London area of Hampstead. Hampstead is characterised by attractive Georgian and Victorian housing stock, particularly within the village itself, as well as by large detached houses from the inter-war period. Close to local shopping amenities around Hampstead High Street and Finchley Road and good transport links nearby serving central London and neighbouring areas. Hampstead has strong artistic and literary associations and continues to attract people looking to escape the City but stay close to the bustle of town, with families often attracted to the area for its distinct ‘village’ feel.

Your Investment – CapitalRise investors will benefit from a First Legal Charge over the Properties, A Cost Over-run Guarantee, First Ranking Debenture over the borrower, assignment over build contract and Collateral Warranties from key professionals. Investments will always be first in line to be repaid when a payment is made against the loan. In the event of a forced sale of the Properties, CapitalRise investors would recover their investment first and if the borrower is unable to repay the loan, CapitalRise will seek to force the sale of the Properties on behalf of investors. If sales are achieved the value would need to be less than 63% of the anticipated market value before your invested capital and accrued return are at risk. 

Property – The proposed Properties will consist of two four bedroom townhouses with the house being 1,537 sq. ft and the other 1,481 sq. ft. The Properties will have a Georgian-inspired design and be completed to a high standard specification with views over Hampstead Heath. Hampstead Heath is a stone's throw away, and the Properties boast attractive views onto the greenery of the Heath. The Properties are designed by world-renowned British architect, Quinlan Terry, who was appointed CBE for services to classical architecture. 

The Developer – These Properties are being developed by a highly experienced and well known developer, The Albany Group established in 1984, specialising in the acquisition and development of luxury residential property in London. The company’s track record has resulted in a series of joint venture partnerships with renowned development companies such as Galliard Homes, The Pears Group, ABP, etc. Please see the website link here to their past projects. CapitalRise has not provided any loan to this borrower to date.

Exit Plan – The borrower either intends to sell the Properties on the open market upon completion or retain the assets as rental properties. If they intend to retain them, then the CapitalRise loan will be refinanced by another BTL lender. It is important to note that both Properties would need to be sold to repay the CapitalRise loan in full.