michaelc
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Post by michaelc on Nov 28, 2017 20:02:57 GMT
Was planning permission in place when he bought the site?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 28, 2017 20:28:53 GMT
Was planning permission in place when he bought the site? Yes (though hasnt bought it yet) 2010 and extant as a result of the access road being built according to VR. Looking to get planning for additional houses to enhance value.
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Post by df on Nov 28, 2017 20:34:13 GMT
From the loan details "The site extends to approximately 8.5 acres and is currently unoccupied and overgrown. The borrower is paying £1,600,000 plus vat, stamp duty and legal fees bringing it to around £2,100,000" (Loan is for £1,890,000 vs valuation of £2,700,000) Applying my usual sense check of the government published typical land values to development land valuations, Blackburn with Darwen council area consented residential development land is suggested to be c. £665k / hectare (2015 figures), so at 3.44 hectares the site value would be c. £2.3m (implying LTV of 82%). EDIT: By the same measure, the Darwen site owned by the same borrower came out at c. 170% LTV. It seems to be the norm - investors have to figure out the real LTV themselves. It could've been better if there was a regulation requiring to standardise it to fire sale value across the lending sector. BTW, thank you for sharing info on DD central!!! Great feature of this forum.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 28, 2017 22:36:55 GMT
I note that Col have factored the leap year into the term.
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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 Nov 28, 2017 22:50:45 GMT
I note that Col have factored the leap year into the term. So not expecting to drawdown until March 2019.
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oldgrumpy
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Post by oldgrumpy on Nov 29, 2017 10:06:42 GMT
I have got some of the other two loansof mr bu***n but i want col to find out when he will start the work on the other ones darwen and Waveledge. I saw the other day that the goverment is going to crack down on developer's who stock pile land and dont evn build houses with permission theyve already got Lets hope this developer does not get compulsorly purchased for not building perhaps i will buy some of this one on the SM when work actualy starts and development loans appear if they are seperate. harry g It looks like demolition is already in progress on Waverledge, with construction due to start during January. Today's loan and future ones rank behind the initial one in a default, so I will hang on to (and maybe increase on) that stake rather than taking on the development loans even at 14%.
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easylender
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Post by easylender on Nov 29, 2017 11:31:15 GMT
I regard diversification as essential. There are several existing loans to this borrower and I’m in two of them already and so no more for me. My concern is that when platforms are finding it hard to source decent loans they can encourage existing borrowers to take on more debt, but you only have to look over on TC at the N*** G**** loans debacle to see where that can lead. I'd like to see loans from more borrowers please.
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stevio
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Post by stevio on Nov 29, 2017 12:04:13 GMT
There is no real explanation as to the 2.7M valuation in the report (and I note lack of 90d value) - we dont have any previous sales price of this specific asset, other than the current sale price for comparison of 1.6M. We are told there was a discount, but 40% discount is hard to believe and if true, why would this not need t be offered to resell. If this became a distressed sale, why would anyone pay more than the most recent sale price, as they too would want the same discount (if not more) than the current borrower got.
So for me I have to treat this as a 118% LTV.
Happy to lend 1.12M on a 70% LTV basis, 12% with CB, then more on a developmental loan basis
Borrower is new company with no previous history of completed developments (although apparently experience gained in other companies) and current developments have not really progressed to show competency in developing out a site. Information provided by CO on the borrower (attachment to loan details) suggests they are actually not looking to develop, but add additional planning and sell on. There is a risk they wont be able to sell and then (forced) to develop, when they haven't had the history to prove they can successfully do this to budget and timescale.
This is amplified for lenders in the other loans, who may well be feeling over exposed from over commitments due to previous cashback and not able to reduce this due to a saturated SM
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Post by mrclondon on Nov 29, 2017 12:47:36 GMT
I thought it might be enlightening to add up the total proposed debt to this borrower's related SPV's. Assuming I've not missed any tranches: Darwen £1,327,785 Burnley £810,648 Gt Harwood £885,000 Blackburn £1,890,000 (open for funding) Barnsley £180,000 (due for repayment in 18 days) Bradford £503,580 (not drawn down yet)TOTAL £5,597,013Which represents an ongoing interest comittment once retained interest has been exhausted of somewhere in the region of £1m pa And thats all before any more development tranches are launched. (My mind is churning a few other thoughts which I'll comment on later today) - now in a new thread |
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hantsowl
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Post by hantsowl on Nov 30, 2017 11:12:44 GMT
I thought it might be enlightening to add up the total proposed debt to this borrower's related SPV's. Assuming I've not missed any tranches: Darwen £1,327,785 Burnley £810,648 Gt Harwood £885,000 Blackburn £1,890,000 (open for funding) Barnsley £180,000 (due for repayment in 18 days) Bradford £503,580 (not drawn down yet) TOTAL £5,597,013Which represents an ongoing interest comittment once retained interest has been exhausted of somewhere in the region of £1m pa And thats all before any more development tranches are launched. (My mind is churning a few other thoughts which I'll comment on later today) These Loans do not have the same 'borrower id', presumably because they are different SPV's from the same borrower. Is there any obvious way to show that these loans have the same borrower? Maybe a comment or tab in the loan description... This would be useful for those who wish to limit exposure to a single borrower.
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Post by Collateral Rep on Nov 30, 2017 11:21:33 GMT
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Post by boudicca on Dec 1, 2017 10:46:28 GMT
This loan doesn't seem to be very popular with lenders and I am now thinking that it may not even go ahead at all.
I made a small investment in the loan but now I would prefer to cancel it, is that possible ?
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oldgrumpy
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Post by oldgrumpy on Dec 1, 2017 10:59:51 GMT
This loan doesn't seem to be very popular with lenders and I am now thinking that it may not even go ahead at all. I made a small investment in the loan but now I would prefer to cancel it, is that possible ? You can't do that Queen B. Not to worry though; if the loan stalls in a few weeks, you'll get your cash back with interest for almost no risk. edit: for "cash back" please read "money back". 
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ingwer
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Post by ingwer on Dec 1, 2017 12:45:17 GMT
Surely you will only get the Cashback if the loan draws down ? If it is not fully funded then who will pick up the slack ?
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radar
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Post by radar on Dec 1, 2017 13:12:30 GMT
In this instance there is a difference between CashBack and cash back meaning the deposited cash will be returned with interest
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