Cross House, Clearwell – Investment Opportunity

Overview

Cross House is a substantial six-bedroom Grade II listed property located in the historic village of Clearwell near Coleford. The property requires a full renovation and presents a strong value‑add opportunity for investors looking to deliver a high‑end refurbishment in a desirable residential location.

Our broker at Ramsay and White, Alec Witts, has provisionally secured both a bridging finance product and a refurbishment facility, giving strong confidence in the project’s financial structure. The detailed lending figures referenced below could be available to an investing partner, offering a clear and secure funding route into the deal.

In addition, our appointed builder has demonstrated significant belief in the project’s strength by agreeing to cover the first £45,000 of renovation works from their own funds. They will only receive their first payment tranche following the initial valuation for drawdown, meaning substantially less upfront capital is required to begin works and move the project forward at pace.

The building offers generous internal space, a large garden, and original character features typical of historic period homes. Comprehensive due diligence has been completed on the refurbishment scope, supported by a fixed builder’s quotation that provides clarity on renovation costs and reduces execution risk for investors.

The proposed strategy is a full refurbishment and resale (flip), taking advantage of strong demand for large family homes in this sought‑after area.

Location

Cross House sits in the centre of the picturesque village of Clearwell, within the Forest of Dean. The area is known for its historic charm, countryside setting, and strong appeal to families and lifestyle buyers.

The property benefits from convenient access to local amenities and schools, including:

• Clearwell Church of England Primary School – approximately 0.3 miles

• St John’s C of E Academy, Ellwood Primary School, and Coalway Junior School – within 1.5 miles

• Lydney Railway Station – approximately 5.5 miles

The home also benefits from a large private garden, increasing its desirability for family purchasers. Although there is currently no allocated parking, discussions have taken place with the neighbouring Memorial Hall to purchase or lease a parking space, and this has already been factored into the project costings.

Renovation Due Diligence

The property requires a comprehensive refurbishment to unlock its full market value.

Key points:

• Full renovation required

• Property is Grade II listed, meaning the front façade must be preserved

• Detailed refurbishment scope assessed

• Fixed builder’s quotation secured

• Professional cost estimates included within the investment model

This work will transform the property into a high-quality six-bedroom home suitable for the local resale market.

Investment Numbers

Purchase & Costs

• Purchase Price: £282,000

• Refurbishment Budget: £180,000

• Stamp Duty: £18,200

• Parking Provision: £10,000

• Legal Fees: £2,000

• Survey: £500

• Source Fee: £6,000

Total Cash Required

• £498,700

Projected Outcome

• Gross Development Value (GDV): £650,000

• Projected Profit: £151,300

• Return on Investment: 23%

• Exit Strategy: Refurbishment and Sale (Flip) Cross House - Clearwell Source …

Comparable Sales

Comparable properties in the local area indicate strong resale demand and support the projected valuation.

Recent sales used to support the GDV include:

• The Old Post Office – £350,000 - https://www.rightmove.co.uk/properties/150374897#/?channel=RES_BUY

• Dingle Rise, High Street – £335,000 - https://www.rightmove.co.uk/properties/134342459#/?channel=RES_BUY

• The Rockery, High Street – £425,000 - https://www.rightmove.co.uk/properties/144395267#/?channel=RES_BUY

• 1 Church Cottage – £425,000 - https://www.rightmove.co.uk/house-prices/details/9129cc6d-bce1-43ec-b3fd-b7d6e8e543ee

These comparables produce an average value of approximately £3,788 per m², supporting the valuation assumptions used in the project analysis.

✅ Lending Summary & Cash Requirement for the Cross House Deal

Using the attached lending illustration (75% Gross Retained Bridging Facility), here is how the finance integrates with your project.

🔶 Lending Facility Purchase Only Summary

Product: Bridging Loan – Tier 1 Refurbishment
Lender Type: Short‑Term Finance
Charge: 1st Charge on the property
Interest: Retained (NO monthly payments)
Rate: 0.82% per month
Loan Term: 12 months
Purchase Type: Purchase

Loan Amounts

• Gross Loan Amount: £211,410

• Net Loan to You: £187,750

• Loan-to-Value: 74.97% LTV (based on £282,000 purchase price)

Fees Included in the Loan

These are rolled into the gross loan and therefore do not need to be paid upfront:

• Facility/Product Fee: £3,755 (added to loan)

• Assessment Fee: £145 (added to loan)

• TT Fee: £25 (added to loan)

• Retained interest: £19,735 (included in the gross figure)

What the bridging loan covers

The bridging loan covers:

• A large part of the purchase price

• All interest & facility fees (because it’s gross retained)

• It does NOT cover refurbishment costs
  → but your builder is covering the first £45,000, reducing the immediate cash required for works.

🔶 Cash Needed With Lending Applied

We subtract the Gross Loan Amount (because that’s the total finance available to you):

£498,700 – £211,410 = £287,290

✔ Cash required to complete the purchase and entire renovation: £287,290

🔶 Why the Actual Cash Requirement May Be Even Lower

Because:

✅ Your builder is fronting £45,000 of the refurb works

You do not need to put this up front, and the builder is only paid later.

This effectively reduces early-stage cash pressure.

➡️ Net Profit Using Bridging Loan:

£131,565

🔶 Cash Required WITH This Refurbishment Facility

Here we calculate only the cash you need to complete the purchase (excluding any renovation spend), on the basis that the lender will re‑inspect after the builder has put in the first £45,000 and then release further funds for works.

Below is a clear breakdown using the refurbishment facility illustration you uploaded. I’ll show two variants depending on whether the £10,000 parking provision is payable on completion or later.

1) What the lender actually puts in at completion

From your refurbishment facility document:

• Net loan advanced to you at completion: £205,860.00 (arrangement/other fees deducted; interest is retained/rolled)

• Gross/interest details are not cash to you on day one, so for purchase calculations, we use the net loan.

(Source: “Net loan £205,860.00”; “12 months rolled interest £26,126.68”; “Gross loan incl. interest £236,570.56.”)

2) Purchase & acquisition costs (no refurb)

Using the figures you provided:

• Purchase price: £282,000

• Stamp Duty (SDLT): £18,200

• Legal fees: £2,000

• Survey: £500

• Source fee: £6,000

Total to complete (excluding parking): £308,700
Total to complete (including £10,000 parking on completion): £318,700

3) Your cash required to complete the purchase (no refurb)

We subtract the net loan (£205,860) from the acquisition total.

A. If parking is not payable on completion

£308,700 – £205,860 = £102,840 cash required

Answer:

• £102,840 (if parking completes later), or

• £112,840 (if the £10,000 parking provision must be paid at completion).

4) Notes & assumptions

• I’ve excluded all refurbishment costs because your lender will re‑inspect after your builder contributes the first £45,000, then allow further drawdown for the works. (This reduces your upfront cash exposure for renovations to £0 until after that first valuation.)

• The only open item is whether the £10,000 parking provision is due at completion or later—hence the two scenarios above.

• If any completion fees (e.g., lender legal, notice fees, CHAPS) are to be paid by you on day one and are not netted from the loan, we can add them in; your PDF lists the arrangement/general insurance/transfer fees but these were accounted for within the loan maths to reach the net loan figure.

➡️ Net Profit Using Refurbishment Facility:

£125,173.32

Executive Summary

Cross House presents a highly attractive, de‑risked value‑add refurbishment opportunity in the sought‑after village of Clearwell, within the Forest of Dean. This substantial six‑bedroom Grade II listed property offers significant uplift potential through a full renovation and resale strategy, supported by strong local demand for high‑quality family homes.

Key highlights include:

• Large six‑bedroom period property with strong end‑market appeal

• Robust demand for refurbished character homes in the area

• Fixed‑price refurbishment quotation secured, reducing execution risk

• Clear and proven refurbish‑and‑flip strategy

• Projected £151,300 profit and 23% ROI

• Builder contributing the first £45,000 of works, reducing early cash requirements

• Lending provisionally secured for both the purchase (bridge) and the refurbishment facility, ensuring funding continuity throughout the project

With due diligence completed, refurbishment costs verified, and streamlined finance already arranged, Cross House provides investors with a structured, lower‑risk entry into a high‑margin property development. The combination of secured lending and the builder’s upfront £45,000 contribution substantially reduces initial capital outlay, making this a uniquely efficient and well‑supported investment opportunity.