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Post by mrclondon on Oct 11, 2018 9:52:05 GMT
One other minor point - small typos on the loan details - there is no space between the 2 character and 10 character part of the borrowing company name, and a subsequent mention of the company name omits the 2 character part completely. The company has a 12 character name.
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SteveT
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Post by SteveT on Oct 11, 2018 9:54:39 GMT
Morning. Thanks all - please keep the posts/queries coming and we will look to capture them in a FAQs before the loan goes live. Regards, Ed. Given the lack of any CH accounts for the borrower (as yet), I'd like to see latest management accounts and/or a statement from the company's accountant, as least to confirm the extent of the company's current assets and liabilities. At face value, the proposition appears reasonably sound (at least, I've seen worse) but theoretically the company could have fingers in other smelly pies that we know nothing of. In particular, does the sentence " Initially the client was hoping to include the completed project within the set of accounts, but as this is now no longer possible he has instructed his accountant to complete the relevant filings" imply that the company has other activities / interests beyond the C********* building?
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Post by MoneyThing on Oct 11, 2018 10:03:34 GMT
One other minor point - small typos on the loan details - there is no space between the 2 character and 10 character part of the borrowing company name, and a subsequent mention of the company name omits the 2 character part completely. The company has a 12 character name. Thanks. Corrected.
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amphoria
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Post by amphoria on Oct 11, 2018 11:08:31 GMT
Given the interest rate that the borrower is currently paying is not far off what he'll be paying MT when/if the debt is refinanced, what's the incentive for refinancing. Presumably the current financer isn't prepared to extend the extra £150k required to complete the project? I wonder why? If the accounts will be filed prior to the loan being drawn down, can they not be provided prior to the loan going live? Given that the loan redemption date was 9 months after July 2017, the current borrower is probably paying the full 3% per month defined in the loan agreement. Anyway it looks like he is selling the company to the MT borrower. According to Practical Law the definition of a Condition Subsequent is as follows (ie. it occurs after drawdown): "In a loan agreement, a condition that must be satisfied by the borrower within a set time period following drawdown. Where a borrower does not satisfy a condition precedent in time for drawdown, the lender may agree to lend the money as long as the borrower agrees to satisfy the condition by a future date. Usually, a letter (in the form of a condition subsequent or waiver letter) is signed by the parties before drawdown setting out details of the outstanding condition and the date by which the borrower should satisfy it. Failure to fulfil the condition within the set time period will usually trigger an event of default."
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Post by dan1 on Oct 11, 2018 11:09:35 GMT
Morning. Thanks all - please keep the posts/queries coming and we will look to capture them in a FAQs before the loan goes live. Regards, Ed. I assume the secondary market will be locked for 6 months from drawdown? Is it possible for it to be locked for 6 months from investment into the loan to avoid the inevitable stampede and encourage early investment to help the loan fill (a rapidly filling loan will often spur on investors who see that others have confidence in the loan)?
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Post by eascogo on Oct 11, 2018 11:26:58 GMT
Morning. Thanks all - please keep the posts/queries coming and we will look to capture them in a FAQs before the loan goes live. Regards, Ed. I assume the secondary market will be locked for 6 months from drawdown? Is it possible for it to be locked for 6 months from investment into the loan to avoid the inevitable stampede and encourage early investment to help the loan fill (a rapidly filling loan will often spur on investors who see that others have confidence in the loan)? Good idea. A stampede to invest would revive the heady days of the past when everything was gobbled up within minutes.
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Post by funkymonkey on Oct 11, 2018 11:31:14 GMT
Morning. Thanks all - please keep the posts/queries coming and we will look to capture them in a FAQs before the loan goes live. Regards, Ed. I assume the secondary market will be locked for 6 months from drawdown? Is it possible for it to be locked for 6 months from investment into the loan to avoid the inevitable stampede and encourage early investment to help the loan fill (a rapidly filling loan will often spur on investors who see that others have confidence in the loan)? I like that idea
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Post by windsurfwillie on Oct 11, 2018 11:57:40 GMT
Moneything
Could I ask how much the borrower has invested in this development? I like to know how much 'skin' they have in the game - all too often the valuation is boosted by the planning gain, and the investor has very little actually invested/to lose.
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Post by df on Oct 11, 2018 12:38:02 GMT
Morning. Thanks all - please keep the posts/queries coming and we will look to capture them in a FAQs before the loan goes live. Regards, Ed. I assume the secondary market will be locked for 6 months from drawdown? Is it possible for it to be locked for 6 months from investment into the loan to avoid the inevitable stampede and encourage early investment to help the loan fill ( a rapidly filling loan will often spur on investors who see that others have confidence in the loan)? Very true. Less informed investors tend to follow the trend. Also, considering the size of this loan, it is not likely to be filled soon.
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Post by GSV3MIaC on Oct 11, 2018 12:54:49 GMT
I assume the secondary market will be locked for 6 months from drawdown? Is it possible for it to be locked for 6 months from investment into the loan to avoid the inevitable stampede and encourage early investment to help the loan fill (a rapidly filling loan will often spur on investors who see that others have confidence in the loan)? Good idea. A stampede to invest would revive the heady days of the past when everything was gobbled up within minutes.
I doubt that is an option .. "possible to sell" (or not) is an attribute applied at the loan level, not the loan-part level, as far as I know.
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Post by dan1 on Oct 11, 2018 13:43:19 GMT
Good idea. A stampede to invest would revive the heady days of the past when everything was gobbled up within minutes.
I doubt that is an option .. "possible to sell" (or not) is an attribute applied at the loan level, not the loan-part level, as far as I know.
It's just software and conceptually it's easy enough to code. Everything is "possible" in software
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kaya
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Post by kaya on Oct 11, 2018 14:41:42 GMT
Gosh, everyone's gearing up to sell in 6 months time already. Maybe this new approach by MT is not such a good idea after all.
Don't invest unless willing to hold to term.
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archie
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Post by archie on Oct 11, 2018 14:43:28 GMT
Gosh, everyone's gearing up to sell in 6 months time already. Maybe this approach is not such a good idea after all.
Don't invest unless willing to hold to term.
I'll hold but like the proposed incentive for lenders to invest earlier.
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r00lish67
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Post by r00lish67 on Oct 11, 2018 14:46:43 GMT
Gosh, everyone's gearing up to sell in 6 months time already. Maybe this new approach by MT is not such a good idea after all.
Don't invest unless willing to hold to term.
Well, exactly. For me, and I think generally for those who would be able to invest the most capital (not me) this is the current fatal flaw to MT's proposition. What's the point of making the effort to do extra research and finding your own monitoring points if you know there's going to be a wall of par-only SM queue either at drawdown or in this case at the 6 month point? Edit: The obvious best solution is a variable SM, but as that's clearly not going to happen in the short-term (unless Ed is about to spring a big surprise) then another suggestion would be bonus rates similar to FS i.e. you're awarded a 1 or 2% bonus perhaps if you hold the investment to its full initial term. This would encourage people not to sell right away, and be more of a carrot as opposed to the undesirable stick of an SM listing fee.
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SteveT
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Post by SteveT on Oct 11, 2018 15:10:22 GMT
Leasehold building with only 33 years left to run. Repayment strategy in a year via a commercial mortgage. Nobody will touch it with only 32 years left. I'm out. ”Is there a typical lease length for commercial leases? The period of time for which a commercial lease is granted (called the “term”) will vary depending upon the nature of the letting and the requirements of the landlord and the tenant. They are rarely granted for more than 25 years. In recent years, the trend has been for considerably shorter leases and the average length is now around eight years.” www.penningtons.co.uk/expertise/business/real-estate/property-entrepreneurs/property-entrepreneurs-faqs/faqs-commercial-leases/
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