firedog
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Post by firedog on Apr 5, 2023 21:10:51 GMT
Interesting to read the numbers of extensions, defaults and receiverships. Thank you. Straightforward 're-terms' are one matter, the concern I have is the significant ratio of loans that are now in a position where KF has not been able to agree terms for an extension with the borrower. It seems like those borrowers are simply co-operating. Those and receiverships are a different level of concern to lenders to an agreed extension. It could very well be a by-product of Kuflink's new policy of adjusting interest rates for re-terms - something that was called for by many lenders. Borrowers might be happy to extend, but maybe not at increased rates - hence lack of agreement. Edit: just looking through my portfolio and noticed another retermed at a higher rate: 8.17% from the original 7.02%
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SteveK
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Post by SteveK on Apr 6, 2023 13:00:44 GMT
Interesting to read the numbers of extensions, defaults and receiverships. Thank you. Straightforward 're-terms' are one matter, the concern I have is the significant ratio of loans that are now in a position where KF has not been able to agree terms for an extension with the borrower. It seems like those borrowers are simply co-operating. Those and receiverships are a different level of concern to lenders to an agreed extension. It could very well be a by-product of Kuflink's new policy of adjusting interest rates for re-terms - something that was called for by many lenders. Borrowers might be happy to extend, but maybe not at increased rates - hence lack of agreement. Edit: just looking through my portfolio and noticed another retermed at a higher rate: 8.17% from the original 7.02% Did Kuflink not always increase interest rates for re-terms, but are now passing on the increase to lenders?
Or is it the case that there is now a bigger re-term increase to give lenders a share?
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shimself
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Post by shimself on Apr 28, 2023 10:34:31 GMT
My first officially defaulted loan on KUF, Front St.
I've noticed it's nowhere near Gravesend. I'll take care to stick to their home turf in future. LTV supposedly 45pc, here's hoping
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SteveK
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Post by SteveK on Apr 28, 2023 13:56:11 GMT
My first officially defaulted loan on KUF, Front St.
I've noticed it's nowhere near Gravesend. I'll take care to stick to their home turf in future. LTV supposedly 45pc, here's hoping
Lucky you, this is now my 4th default! Not sure what the loan was for other than the purchase, was there any added value I wonder. No 'suitable exit to this loan' so no takers! Makes you wonder if it was ever viable! As you say, hope it's LTV is correct.
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Post by Ace on Apr 28, 2023 14:31:48 GMT
My first officially defaulted loan on KUF, Front St.
I've noticed it's nowhere near Gravesend. I'll take care to stick to their home turf in future. LTV supposedly 45pc, here's hoping
45% LTV was for the tier 2 loan. The full loan was at 64.39% LTV (63.42% LTV after Kuflink's first loss stake). The borrower made a capital repayment to tier 1 lenders as part of an earlier extension, so actual LTVs against the original OMV will be less now (I couldn't find any info on the size of the capital repayment as I'm not in this one). As this was a bridging loan there's no chance of any half completed development works affecting the value, so I would expect a full recovery for all 3 tiers, assuming the original valuation was anywhere near accurate.
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SteveK
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Post by SteveK on Apr 28, 2023 18:01:43 GMT
My first officially defaulted loan on KUF, Front St.
I've noticed it's nowhere near Gravesend. I'll take care to stick to their home turf in future. LTV supposedly 45pc, here's hoping
45% LTV was for the tier 2 loan. The full loan was at 64.39% LTV (63.42% LTV after Kuflink's first loss stake). So not too bad, I think.The borrower made a capital repayment to tier 1 lenders as part of an earlier extension, so actual LTVs against the original OMV will be less now (I couldn't find any info on the size of the capital repayment as I'm not in this one). £50.03 per £1000 so quite a small repayment.As this was a bridging loan (ah, missed that, so no added value) there's no chance of any half completed development works affecting the value, so I would expect a full recovery for all 3 tiers, assuming the original valuation was anywhere near accurate. I'm sure it will be 🤞
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Post by Ace on Apr 28, 2023 18:24:41 GMT
45% LTV was for the tier 2 loan. The full loan was at 64.39% LTV (63.42% LTV after Kuflink's first loss stake). So not too bad, I think.The borrower made a capital repayment to tier 1 lenders as part of an earlier extension, so actual LTVs against the original OMV will be less now (I couldn't find any info on the size of the capital repayment as I'm not in this one). £50.03 per £1000 so quite a small repayment.As this was a bridging loan (ah, missed that, so no added value) there's no chance of any half completed development works affecting the value, so I would expect a full recovery for all 3 tiers, assuming the original valuation was anywhere near accurate. I'm sure it will be 🤞So, roughly a 5% capital repayment of the tier 1 loan. That effectively reduces the LTV of all tiers by 1.25%. So, tier 1 now has a 23.75% LTV, Tier 2 43.75%, and tier 3 62.17% (after Kuflink's first loss stake).
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69m
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Post by 69m on Aug 19, 2023 17:12:40 GMT
Short extensions of a few months are almost to be expected, especially with development loans.
However, I was staggered to receive an email yesterday afternoon regarding a 16-month extension for W******** L*** (L***). Because this loan had already been extended once before, the total extension period (22 months) for this clearly mismanaged project is now longer than the original agreement term (18 months).
The apparent absence of any penalty interest is particularly annoying. Kuflink's email didn't mention it at all, and the Loan Reterm Information page remains completely blank.
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Post by Ace on Aug 19, 2023 18:28:12 GMT
Short extensions of a few months are almost to be expected, especially with development loans.
However, I was staggered to receive an email yesterday afternoon regarding a 16-month extension for W******** L*** (L***). Because this loan had already been extended once before, the total extension period (22 months) for this clearly mismanaged project is now longer than the original agreement term (18 months).
The apparent absence of any penalty interest is particularly annoying. Kuflink's email didn't mention it at all, and the Loan Reterm Information page remains completely blank.
I note that this borrower also has a Kuflink loan on another project; also mismanaged and also extended multiple times. One of the updates (back in May) mentions that " Investors will see an uplift in their rates in due course", but there's no indication as to whether that ever happened or what the new rate was supposed to be for the borrower or lenders. The Loan Reterm Info tab is also blank. Another odd thing about these loans is that the initial tranche is multi tiered, but following tranches are not. Presumably, the tier 1 lenders still keep their stated LTV position, but there's nothing mentioned about this in later non-tiered loans. So, lenders in later tranches may not be aware that they're in a subordinated position (still stated as first charge in the Loan Info). It seems a bit of a dog's dinner to me. Or have I misunderstood?
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rscal
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Post by rscal on Aug 19, 2023 19:08:27 GMT
Short extensions of a few months are almost to be expected, especially with development loans.
However, I was staggered to receive an email yesterday afternoon regarding a 16-month extension for W******** L*** (L***). Because this loan had already been extended once before, the total extension period (22 months) for this clearly mismanaged project is now longer than the original agreement term (18 months).
The apparent absence of any penalty interest is particularly annoying. Kuflink's email didn't mention it at all, and the Loan Reterm Information page remains completely blank.
Yep, I was eyeing this one to sell when it came out of purdah on 18th August and assumed this time there would be an uplift (0.34% for the borrower and 0.19 or so for us) which would make selling parts easier (after all would you really want to hold this one for a further 14 months?) It seems unfair of Kuflink not to consider the position of sorely tested investors but maybe the Borrower can't afford 16% pa for something they want to flog but need to complete first. That email (1 June) didn't say much about 'when' a deal is enhanced. In fact all it says is: (not "when a loan is re-termed, the interest rate to the borrower is increased...") So what we must conclude from this is that Kuflink didn't "go in to bat for" us Lenders (i.e. 'work to negotiate a raise')
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Post by df on Aug 19, 2023 22:43:34 GMT
Short extensions of a few months are almost to be expected, especially with development loans.
However, I was staggered to receive an email yesterday afternoon regarding a 16-month extension for W******** L*** (L***). Because this loan had already been extended once before, the total extension period (22 months) for this clearly mismanaged project is now longer than the original agreement term (18 months).
The apparent absence of any penalty interest is particularly annoying. Kuflink's email didn't mention it at all, and the Loan Reterm Information page remains completely blank.
I note that this borrower also has a Kuflink loan on another project; also mismanaged and also extended multiple times. One of the updates (back in May) mentions that " Investors will see an uplift in their rates in due course", but there's no indication as to whether that ever happened or what the new rate was supposed to be for the borrower or lenders. The Loan Reterm Info tab is also blank. Another odd thing about these loans is that the initial tranche is multi tiered, but following tranches are not. Presumably, the tier 1 lenders still keep their stated LTV position, but there's nothing mentioned about this in later non-tiered loans. So, lenders in later tranches may not be aware that they're in a subordinated position (still stated as first charge in the Loan Info). It seems a bit of a dog's dinner to me. Or have I misunderstood? Gladly I'm not in "another project", probably sold it when it was approaching the end date and it was extended afterwards. Extensions are normal in property development loans, but 16 month extension is alarming, something must be going very wrong there. I would've kept my loan part for longer as the interest is still paid, but there's not much point keeping it at 6.7%. I'll put it on market place next week and if sold put this money in one of my savings accounts, slightly less interest but guaranteed return. It is comforting being in tier 1, but in the event of default I don't want to wait for years to receive crumbs (if any left after third parties take their cut), I'm on the wind down with KUF from next week anyway so may as well get rid of loans that show clear signs of failure.
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ganymede
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Post by ganymede on Aug 20, 2023 11:23:53 GMT
I note that this borrower also has a Kuflink loan on another project; also mismanaged and also extended multiple times. One of the updates (back in May) mentions that " Investors will see an uplift in their rates in due course", but there's no indication as to whether that ever happened or what the new rate was supposed to be for the borrower or lenders. The Loan Reterm Info tab is also blank. Another odd thing about these loans is that the initial tranche is multi tiered, but following tranches are not. Presumably, the tier 1 lenders still keep their stated LTV position, but there's nothing mentioned about this in later non-tiered loans. So, lenders in later tranches may not be aware that they're in a subordinated position (still stated as first charge in the Loan Info). It seems a bit of a dog's dinner to me. Or have I misunderstood? Gladly I'm not in "another project", probably sold it when it was approaching the end date and it was extended afterwards. Extensions are normal in property development loans, but 16 month extension is alarming, something must be going very wrong there. I would've kept my loan part for longer as the interest is still paid, but there's not much point keeping it at 6.7%. I'll put it on market place next week and if sold put this money in one of my savings accounts, slightly less interest but guaranteed return. It is comforting being in tier 1, but in the event of default I don't want to wait for years to receive crumbs (if any left after third parties take their cut), I'm on the wind down with KUF from next week anyway so may as well get rid of loans that show clear signs of failure. I'm in winding down mode so I just put the 2 Loans I have up for sale. Had hope to get out of Kuflink by end of this year, certainly don't want loans lasting until the end of next year. It's not worth listing other loans as remaining terms are short. It's was only possible sale 3 out of 31.
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SteveK
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Post by SteveK on Aug 20, 2023 12:55:01 GMT
Short extensions of a few months are almost to be expected, especially with development loans.
However, I was staggered to receive an email yesterday afternoon regarding a 16-month extension for W******** L*** (L***). Because this loan had already been extended once before, the total extension period (22 months) for this clearly mismanaged project is now longer than the original agreement term (18 months).
The apparent absence of any penalty interest is particularly annoying. Kuflink's email didn't mention it at all, and the Loan Reterm Information page remains completely blank.
I don’t think I’d put money into this loan at 6.7% considering the mismanagement and 2 failed repayments, making this loan an altogether higher risk, but it seems I have to unless I sell it. Kuflink continue to give me concerns.
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rscal
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Post by rscal on Aug 22, 2023 18:32:01 GMT
An update for W******** L*** (L***) has gone up. They explain the circumstances of the loan extension (I'll leave it at that)
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Post by Ace on Aug 22, 2023 19:02:08 GMT
An update for W******** L*** (L***) has gone up. They explain the circumstances of the loan extension (I'll leave it at that) I take their points, but... There's absolutely zero explanation of how Kuflink's "close monitoring" failed to notice that the project was being mismanaged for over 2 years into an 18 month project. During which time, Kuflink were happy to lend over £2m of lenders funds over 18 tranches!!!
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