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Post by df on Jul 10, 2018 20:46:20 GMT
Had a quick look at this one : assuming my maths are correct this applicant owes £786K before the end of the year and £600.5k before end October. The block of 4 is nowhere near finished - Crook seems a lovely part and very cheap part of the world so must visit! The houses have no garage and are on a main road and seem expensive to me. Given the various states of completion the LTV seems well over 100% to me. The title contains restrictive covenents! But the valuer has no idea what they are - brilliant The land had former shallow mine workings - so that is something for any purchasing solicitor to check...all takes time. However how on earth is the applicant going to repay the £275K before the end of the month - the current renewal is not going to last long is it? Given this applicant is paying interest at 20% or whatever pa I just can't see any completed sales before October at the earlies so looks an inevitable cash-flow horlicks to me. Looks like yet another disaster to me but what do I know. Time for my daily thrashing with Mr Smutty! Roddy Hell! an update I read somewhere dated 20/03/18 "Sales have now been agreed at full price on all properties in the block of five units."..Of course that doesn't mean completed but... We've seen a lot of "agreed sales" that don't materialise... I wouldn't give much hope for Creek to be a success story.
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adrian77
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Post by adrian77 on Jul 11, 2018 7:11:19 GMT
never saw that but the "completed" houses are for sale with a local agent - "sales have been agreed" seems pretty meaningless to me - not least the Cinema which was "all systems go"
Maybe sales have been agreed but at what cost - any dealer is going to do his homework and realise he has got a very strong hand
Another interesting one...
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paulb
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Post by paulb on Jul 22, 2018 20:36:37 GMT
Final..10th.. tranche tomorrow (26/06) @10am 2571408501
£55.5K @ 13%..LTV 79% ..temporarily In quite a few but not all of these..however I note theres no mention of Tranche 5 being overdue.. at 234 days in my LB Update on Tranche 5..16/05/2018 "We carried out a site visit w/c 7/05/2018 and can confirm the work on site is progressing well in conjunction with previous updates. A further tranche of funds will be released shortly to continue the development, at which point this loan will be renewed" I notice that tranche 5 mentioned has now been renewed (only 69 days late), but also that the 10th tranche was created by extending the facility, rather than creating a new loan with a lower priority - this means that the bulk of lenders (including myself) who are now in an 80% LTV loan signed up for a 70%ish LTV loan - this isn't how it's supposed to work is it? Paul.
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adrian77
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Post by adrian77 on Jul 22, 2018 20:47:17 GMT
words fail me - glad I slapped this one with the smutty stick!
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Post by df on Jul 22, 2018 20:51:53 GMT
Final..10th.. tranche tomorrow (26/06) @10am 2571408501
£55.5K @ 13%..LTV 79% ..temporarily In quite a few but not all of these..however I note theres no mention of Tranche 5 being overdue.. at 234 days in my LB Update on Tranche 5..16/05/2018 "We carried out a site visit w/c 7/05/2018 and can confirm the work on site is progressing well in conjunction with previous updates. A further tranche of funds will be released shortly to continue the development, at which point this loan will be renewed" I notice that tranche 5 mentioned has now been renewed (only 69 days late), but also that the 10th tranche was created by extending the facility, rather than creating a new loan with a lower priority - this means that the bulk of lenders (including myself) who are now in an 80% LTV loan signed up for a 70%ish LTV loan - this isn't how it's supposed to work is it? Paul. 70% or 80% LTV banner won't make any difference. In the event of default we'll get whatever is available and are very likely to wait for a long time to receive it.
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rogerthat
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Post by rogerthat on Jul 22, 2018 21:10:06 GMT
Up the Creek metaphorically speaking without a smutty stick ?
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paulb
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Post by paulb on Jul 30, 2018 9:59:37 GMT
Some (but not all) tranches of this loan have been updated, with an end-of-week promised site visit followed by a further update. Who's guessing the update won't be that the loans are being repaid, but more likely to be a increased valuation to bring the LTV back to 70%?
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rogerthat
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Post by rogerthat on Jul 30, 2018 10:28:10 GMT
Some (but not all) tranches of this loan have been updated, with an end-of-week promised site visit followed by a further update. Who's guessing the update won't be that the loans are being repaid, but more likely to be a increased valuation to bring the LTV back to 70%? As you say not all have the update..im not in all of the tranches but T4 ( in my LB ) seems to be the exception..is this an oversight ?
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paulb
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Post by paulb on Jul 30, 2018 10:34:56 GMT
Some (but not all) tranches of this loan have been updated, with an end-of-week promised site visit followed by a further update. Who's guessing the update won't be that the loans are being repaid, but more likely to be a increased valuation to bring the LTV back to 70%? As you say not all have the update..im not in all of the tranches but T4 ( in my LB ) seems to be the exception..is this an oversight ? It appears to be the most recent ones which lack the update - along with T4 you've mentioned, there's also tranches 5,9 and 10. I assume it's an oversight, as all tranches are part of the same facility.
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adrian77
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Post by adrian77 on Jul 30, 2018 12:14:45 GMT
If my maths are correct this one is already late and after Wednesday will have £350K due for repayment so I wonder where that is going to come from - surely not yet another loan as the LTV is already far too high for my liking
I foresee this one being in my FA league...
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paulb
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Post by paulb on Jul 30, 2018 12:33:59 GMT
If my maths are correct this one is already late and after Wednesday will have £350K due for repayment so I wonder where that is going to come from - surely not yet another loan as the LTV is already far too high for my liking I foresee this one being in my FA league... Your maths is correct, and there's also another £63k due a week later. Tranche 10 was issued (in part) to pay off the interest, following several increases in valuation, which is why I'd not be surprised to see another increase following the site visit.
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nyneil
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Post by nyneil on Aug 15, 2018 17:56:19 GMT
Posted on FS:
1 hour ago
The CBRE report has been received (saved in Loan Files) and confirms that the project is over budget due to commencing works on phase 2 before concluding phase 1. As such, we have taken the decision to change the monitoring firm to CBRE for the final stage and to issue a supplemental loan to fund the connection of services and remaining works for phase 1. Once the first 5 properties are signed off for practical completion they will be refinanced (evidence obtained) and the loan paid down.
The supplemental loan will rank behind the original development facility in the event of a default.
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adrian77
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Post by adrian77 on Aug 15, 2018 19:48:47 GMT
well no surprise this one is over budget etc
Not sure who is paying for facilities company ?
Below is interesting
well for how much ! And where has the money gone!
I first checked this one on the agents' web site which tells me I first visited it over 4 months ago...
I also read
Very useful - assuming these things have not been bought I think the costings are a tad optimistic
As I said before this looks a wonderful area but very cheap and it looks to me as if the construction costs have already exceeded the likely selling price but appreciate a second opinion on that one from a local expert. If we take £1m borrowed over 6 months at 20% (this chap started borrowing over a year ago) as a very rough guide then that is £100K in interest alone.
I think LTV of 88.64% is an FS record? (excepting the VIP where it is infinity!)
To me 15% is nice but Mr Smutty has told me to reflect on whether I will get 100% of my capital back and I am scared of another thrashing - just my opinion. This is another very interesting one. In fact if these are on the market next year when I should have sold 2 of my developments I may well a drive up there not that I would offer anywhere near the current asking price!
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paulb
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Post by paulb on Aug 16, 2018 15:05:41 GMT
Looks like I posted the below in the wrong thread: Looks like I was wrong on this one - following the survey, they've not reduced the LTV from 79%, but instead are proposing to increase it with a further loan - at least ranking behind the current loans. Who's up for an 80+% TLV development loan?
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paulb
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Post by paulb on Aug 24, 2018 18:38:18 GMT
Looks like the supplemental loan is now being filled - at 88.64% LTV!
Edit: looks like this was already posted.
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