baldpate
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Post by baldpate on Sept 10, 2018 20:42:22 GMT
I would disagree. Imagine a future scenario (perhaps unlikely in this case) in which the loans are defaulted because the borrower cannot sell or refinance the remaining houses for sufficient to cover the outstanding senior debt. In that circumstance, were I a senior debt holder I would be very miffed if I had missed out on a full capital recovery because some of the capital previously realized from my security had been released to the junior debt holders. However unlikely one might think this scenario in the case of this particular development, it is not entirely impossible; and with other developments it may be quite likely!
Indeed, I would go further. FS are proposing to pay out only part of the capital realized from the sale of the first house - sufficient roughly to maintain the LTV on the residual debt. In doing so, they are effectively allowing the borrower to keep a portion of that realization as an 'early profit'. I would make the same argument that this too is wrong - the borrower should get no profit until all indebtedness has been paid off. The borrower should be treated as if he were the lowest priority debt-holder - and yet he is in fact being treated as if he had a priority equal to that of the senior debt-holder (and, indeed, higher than the junior debt-holder!)
This situation is going to keep recurring. We are going to hit it head on very soon with the big tower block loan, Ch***** H****. I am unconvinced that FS have thought this issue through, nor that they have a coherent and reasoned policy for dealing with it
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Sept 10, 2018 20:55:24 GMT
This loan is being reduced/renewed tomorrow as 1 of the 4 properties has been sold ...which leads me to a more general question: Even though the size of this loan has been reduced by more or less 25% to reflect the property being sold, there is also a supplemental loan on the property which isn't being reduced. Through the sale of this property the LTV on the supplemental loan is therefore increasing. In this case it is only by about 1.5% by my calculation but that isn't the point. Surely if the asset is partially sold ALL loans secured against that asset should be reduced in size such that none of them experience an increase in LTV. Are FS being a bit naughty here? No, I don't think so, because the figures are distorted by the time it has taken to sell the first property and the excessive interest that has built up. The loan owes approx 9.5 months interest which means the property needed to sell for approx £158,000, just to cover lender interest. I'm guessing it sold for £185,000, which would cover platform interest and selling costs. In reality, the supplementary loan LTV has reduced, because FS are still using the original estimated value of £170,000 per property when calculating the LTV.
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mullet
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Post by mullet on Sept 10, 2018 21:06:46 GMT
I would disagree. Imagine a future scenario (perhaps unlikely in this case) in which the loans are defaulted because the borrower cannot sell or refinance the remaining houses for sufficient to cover the outstanding senior debt. In that circumstance, were I a senior debt holder I would be very miffed if I had missed out on a full capital recovery because some of the capital previously realized from my security had been released to the junior debt holders. However unlikely one might think this scenario in the case of this particular development, it is not entirely impossible; and with other developments it may be quite likely!
Surely you'd be miffed if you were the junior debt holder and your LTV increased midway through the term of the loan without being given the option to renew/drop-out. Senior debt holder has seen no increase in LTV plus is given the option to renew/drop-out, so I think they are fine. ...just my opinion. Either way I think there are no defined rules for early repayment, and FS make them up as they go along
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adrian77
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Post by adrian77 on Sept 11, 2018 7:13:56 GMT
exactly
I note from the VR - houses are timber-framed, adjoin a petrol station and the plot seems to be leasehold as in
.Am I interested - answers on a digital postcard
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kielbasa
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Post by kielbasa on Sept 11, 2018 8:24:50 GMT
£335k secured on three houses that look quite good, with the other one sold. I would have thought that this loan was fairly safe.
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rogerthat
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Post by rogerthat on Sept 11, 2018 10:29:49 GMT
Less than 30mins to fill..good to see
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Sept 11, 2018 13:21:46 GMT
£335k secured on three houses that look quite good, with the other one sold. I would have thought that this loan was fairly safe. Makes for a rather refreshing change.
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Doc
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Post by Doc on Jun 10, 2019 13:18:39 GMT
Latest Update -
The borrower has arranged refinance to repay our loans. The lender requires the titles to be separated before completing refinance - the borrowers solicitor is in process of arranging this - after which the funds will be released.
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Post by brummiefred on Aug 8, 2019 8:46:26 GMT
Latest update
The final figure for refinancing is lower than the total debt. We are therefore looking at options to sell (rather than refinance) one (or more) of the three properties to supplement the refinance of the remainder to complete full repayment.
A further update will be added when an overall plan has been agreed.
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kielbasa
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Post by kielbasa on Aug 8, 2019 9:55:34 GMT
Can't the borrower sell his car(s), pawn his jewellery etc to get this one over the line.
Let's hope lenders aren't going to end up in F*** Street.
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Post by mrclondon on Nov 13, 2019 13:28:27 GMT
Loans defaulted on the website. Final ids are
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iRobot
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Post by iRobot on Dec 22, 2020 11:24:53 GMT
Update 22/12/20
Can't find any reference to this in the loan particulars, maybe someone in the loan(s) from the outset has better memory and can comment?
FS extracting their 12.89%-sized pound of flesh because, in-spite of Receivers and Administrators being involved, this is classed as a 'Borrower Settlement'.
Come the New Year; Come the Day of Reckoning
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pfffill
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Post by pfffill on Dec 22, 2020 12:10:42 GMT
Update 22/12/20 Can't find any reference to this in the loan particulars, maybe someone in the loan(s) from the outset has better memory and can comment? FS extracting their 12.89%-sized pound of flesh because, in-spite of Receivers and Administrators being involved, this is classed as a 'Borrower Settlement'. Come the New Year; Come the Day of ReckoningNice work if you can get it. Bang go the sixpences in the Christmas pudding.
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rogerthat
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Post by rogerthat on Dec 22, 2020 12:18:11 GMT
And FS directors potentially £47K richer out of the misery of investors..beggars belief Almost £60K being eaten away in attempting to get our own money back
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Post by investor1925 on Dec 22, 2020 12:30:26 GMT
Nevertheless, with today's payment, I've now got back 45% of my capital in FS at the start of admin. That's a shed load more than Col or LY
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