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Post by GSV3MIaC on Oct 11, 2018 16:14:31 GMT
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
Yes, but it's a database change affecting every loan part currently on the platform. Don't hold your breath. 8>.
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Post by Badly Drawn Stickman on Oct 11, 2018 18:00:36 GMT
Recent history would suggest this is a size of loan that MT currently can't fill, seems to have nothing special going for it and quite a few unanswerable questions.
However the 6 month interest up front seems to be attracting some attention, which is odd. Given you would normally receive the interest monthly the additional benefit even if it was invested at 12% would be a very poor return for being locked in for 6 months. Logically you should be able to put 1/6 off your holding on the SM each month.
I know Moneything can only bring to market what is available to them and there is obviously pressure to keep the supply line active but I suspect this one will linger and linger. Really needed to be around 14% to give it a chance. I could be wrong, has to happen eventually.
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SteveT
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Post by SteveT on Oct 11, 2018 18:44:52 GMT
I'm confused. The property isn't leased, it's leasehold. I.e the building is owned, but the land its built on isn't. Had a quick skim of the article, it seems to relate to tenanted (leased) properties. I know in terms of residential, mortgage companies won't touch flats which have a short leasehold remaining (<50 years). Under the terms of a lease, the tenant possesses a leasehold, conferring rights to exclusive possession for the term of the lease, whilst the landlord retains the freehold (when the lease ends, the property reverts to the landlord). New residential leases in this country are typically 99+ years. New commercial leases are 7+ years (since, below 7 years, the landlord retains responsibility for repairs). In commercial terms, this is a long lease, which is not surprising given the money that’s going into refurbishment of the building.
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hazellend
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Post by hazellend on Oct 11, 2018 18:54:41 GMT
Recent history would suggest this is a size of loan that MT currently can't fill, seems to have nothing special going for it and quite a few unanswerable questions. However the 6 month interest up front seems to be attracting some attention, which is odd. Given you would normally receive the interest monthly the additional benefit even if it was invested at 12% would be a very poor return for being locked in for 6 months. Logically you should be able to put 1/6 off your holding on the SM each month. I know Moneything can only bring to market what is available to them and there is obviously pressure to keep the supply line active but I suspect this one will linger and linger. Really needed to be around 14% to give it a chance. I could be wrong, has to happen eventually. I think this one will fill at 12%. The security is better than usual.
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SteveT
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Post by SteveT on Oct 11, 2018 19:12:39 GMT
At the expiry of the lease, if not extended by agreement between tenant and landlord, the land and building would revert to the landlord. Just as a new 99-year leasehold flat would revert to the landlord in 99 years’ time unless the lease were extended. The principles are the same.
(Incidentally, the typical term of a commercial mortgage is 5-10 years, not 25 years!)
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SteveT
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Post by SteveT on Oct 11, 2018 19:57:00 GMT
Huh? I give up.
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hazellend
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Post by hazellend on Oct 11, 2018 19:58:26 GMT
Just read the particulars again. Blimey! It's worse than I thought. The borrower is just a tenant in a leased building, no ownership of the property whatsoever so we have no tangible asset apart from what's on the balance sheet (where is it?)- most likely a big proportion of that is good will. I'll pass on this one. Hang on... I need to go back and read it again. The building is the asset isn't it? The borrower is buying the building without the freehold, but that is not the same as leasing it. The freehold is a seperate asset. In London most properties are owned Leasehold. "This twelve-month loan has a value of £1,600,000 and is secured by a first-charge over the leasehold of a part-completed commercial property at W*********** Square, Liverpool."
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agent69
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Post by agent69 on Oct 11, 2018 20:33:01 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. Or possibly not so good.
Who is going to fund the last 25% of the loan if they know they will be at the back of the selling queue in 6 months time?
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Post by funkymonkey on Oct 11, 2018 20:46:35 GMT
Or possibly not so good.
Who is going to fund the last 25% of the loan if they know they will be at the back of the selling queue in 6 months time?
Why is everyone going to be selling in 6 month's time?
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sarahcount
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Post by sarahcount on Oct 11, 2018 21:35:16 GMT
Why is everyone going to be selling in 6 month's time? There's a strategy that many people use to sell out prior to loan expiry date in case the borrower can't repay and the loan defaults. An alternative approach is to do the opposite and selectively buy up short dated loans when they look strong. A completed development heading to mainstream re-finance or property subject to generous compulsory purchase spring to mind on this platform in particular.
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KoR_Wraith
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Post by KoR_Wraith on Oct 11, 2018 21:47:22 GMT
Why is everyone going to be selling in 6 month's time? There's a strategy that many people use to sell out prior to loan expiry date in case the borrower can't repay and the loan defaults. An alternative approach is to do the opposite and selectively buy up short dated loans when they look strong. A completed development heading to mainstream re-finance or property subject to generous compulsory purchase spring to mind on this platform in particular. I used the alternative strategy when buying into a closely monitored and imminently refinancing factory redevelopment in Wolverhampton. Same strategy I also employed with a lovely quayside development in Liverpool.
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sarahcount
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Post by sarahcount on Oct 11, 2018 21:54:06 GMT
There's a strategy that many people use to sell out prior to loan expiry date in case the borrower can't repay and the loan defaults. An alternative approach is to do the opposite and selectively buy up short dated loans when they look strong. A completed development heading to mainstream re-finance or property subject to generous compulsory purchase spring to mind on this platform in particular. I used the alternative strategy when buying into a closely monitored and imminently refinancing factory redevelopment in Wolverhampton. Same strategy I also employed with a lovely quayside development in Liverpool. Oh yes - I'm in both of those. C'est la vie.
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IFISAcava
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Post by IFISAcava on Oct 11, 2018 23:19:30 GMT
Why is everyone going to be selling in 6 month's time? There's a strategy that many people use to sell out prior to loan expiry date in case the borrower can't repay and the loan defaults. An alternative approach is to do the opposite and selectively buy up short dated loans when they look strong. A completed development heading to mainstream re-finance or property subject to generous compulsory purchase spring to mind on this platform in particular. one is a definitive (sell) one is a probability (looks) The former has less risk in an ongoing liquid market, the latter in an illiquid market
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ilmoro
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Post by ilmoro on Oct 12, 2018 0:40:38 GMT
Recent history would suggest this is a size of loan that MT currently can't fill, seems to have nothing special going for it and quite a few unanswerable questions. However the 6 month interest up front seems to be attracting some attention, which is odd. Given you would normally receive the interest monthly the additional benefit even if it was invested at 12% would be a very poor return for being locked in for 6 months. Logically you should be able to put 1/6 off your holding on the SM each month. I know Moneything can only bring to market what is available to them and there is obviously pressure to keep the supply line active but I suspect this one will linger and linger. Really needed to be around 14% to give it a chance. I could be wrong, has to happen eventually. A £2.5m repayment might help, if that is what tonights activity on the site results in.
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Post by ladywhitenap on Oct 12, 2018 8:25:47 GMT
Recent history would suggest this is a size of loan that MT currently can't fill, seems to have nothing special going for it and quite a few unanswerable questions. However the 6 month interest up front seems to be attracting some attention, which is odd. Given you would normally receive the interest monthly the additional benefit even if it was invested at 12% would be a very poor return for being locked in for 6 months. Logically you should be able to put 1/6 off your holding on the SM each month. I know Moneything can only bring to market what is available to them and there is obviously pressure to keep the supply line active but I suspect this one will linger and linger. Really needed to be around 14% to give it a chance. I could be wrong, has to happen eventually. A £2.5m repayment might help, if that is what tonights activity on the site results in. Said activity has been reversed this morning. Update on site regarding what I hope is a minor delay. LW
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