pedros
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Post by pedros on Nov 9, 2018 20:55:49 GMT
Is anybody out there in this one?
Interesting update today. Will the passing rent on M****** C**** be able to be used to repay 2nd charge loan or for the repair from tree damage?
I’m still reasonably confident of getting back the capital on this one although slightly worried by high repair costs and potential for the security selling for much less than the original valuation at auction.
Any thoughts?
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Greenwood2
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Post by Greenwood2 on Nov 9, 2018 21:20:50 GMT
Not in this loan but If they are seeing sudden recent changes it may be due to the very hot summer. If it is tree damage (due to removal of moisture) and the tree is removed everything should return to a stable position. They should me monitoring the crack to see if it closes or at least doesn't get any worse.
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pedros
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Post by pedros on Nov 12, 2018 0:11:32 GMT
Thanks for the feedback Greenwood. I hope this is the case and the damage isn’t too severe however the report suggests the damage may render the house unmortgageable.
Is anyone aware if the passing rent being claimed by BC on the security can be utilised for capital payback later down the line? If this is the case I will feel much more comfortable about this as the rent payments will help cover any shortfall if the security is auctioned at a much lower price than original OMV estimate. I will pose this question to BC directly and report back if there is any interest out there.
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Greenwood2
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Post by Greenwood2 on Nov 12, 2018 8:06:06 GMT
If there is continuing movement there may have to be remedial work, like underpinning before you could get a mortgage. If removing the tree solves the problem it's should be just cosmetic repair, but Building Societies etc are pretty twitchy about cracks and may insist on underpinning anyway. I had a look at the loan details on BC and it looks as if there is a fair headroom on the valuation to cover remedial work (and another property in the security).
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ash83
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Post by ash83 on Nov 13, 2018 12:44:45 GMT
Thanks for the feedback Greenwood. I hope this is the case and the damage isn’t too severe however the report suggests the damage may render the house unmortgageable. Is anyone aware if the passing rent being claimed by BC on the security can be utilised for capital payback later down the line? If this is the case I will feel much more comfortable about this as the rent payments will help cover any shortfall if the security is auctioned at a much lower price than original OMV estimate. I will pose this question to BC directly and report back if there is any interest out there. : I'm also in this loan and very intrested to see what BC replies to you. Another question I have is, wouldn't/shouldn't insurance be paying for the repair? I guess when BC checks for the right insurance to be in place before accepting a property as security (or ami I mistaken?!)
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ash83
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Post by ash83 on Nov 13, 2018 12:56:46 GMT
Re insurance: I checked the loan condition again (and checked a few other ones). It doesn't mention anything.
Does anybody know if having insurance in place is part of the checks that BC does? As far as I know all banks require you having insurance to get a mortgage (which makes sense). So I think this should be part of the normal procedure of accepting a property as security.
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Greenwood2
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Post by Greenwood2 on Nov 13, 2018 15:01:19 GMT
It sounds like the management company have the remedial work covered, it just may take a long while. If BC sell at auction and can recover enough to pay back the loan, (together with the sale of the other property), that would be the quicker way for lenders to get their money back.
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