unmadem
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Post by unmadem on Feb 13, 2015 19:03:02 GMT
£169k, 10%, ltv 36% 6 months with 3 months min term
drawdown - "It could easily be within the next week, but we will update on further progress once known"
Well I don't believe that but hopefully quicker than the others which have been hanging around since Christmas.
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unmadem
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Post by unmadem on Feb 24, 2015 21:40:01 GMT
ltv changed to 51% due to lack of Mundic Screening Test Report .
credit report has not been changed to reflect this, although web site has.
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rainbow
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Post by rainbow on Feb 26, 2015 15:26:38 GMT
The valuation correction seems to be based on a "Industry Standard" 30% reduction rule of thumb, hence £475K down to £332.5K. This average may not be relevant for this building, why not 10% or 50%? As a Mundic screening test will be necessary in order to sell the property why not delay drawdown until the test has been completed.
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rainbow
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Post by rainbow on Feb 26, 2015 17:56:51 GMT
My earlier post was erroneous. The revised valuation is specific to the building. Further info has been provided by AC on the Q&A page for this loan.
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mikes1531
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Post by mikes1531 on Feb 26, 2015 20:59:10 GMT
This average may not be relevant for this building, why not 10% or 50%? Possibly because 30% of the area of the building might be affected by the concrete question? (As per the Credit Report.)
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j
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Post by j on Feb 26, 2015 22:11:05 GMT
This average may not be relevant for this building, why not 10% or 50%? Possibly because 30% of the area of the building might be affected by the concrete question? (As per the Credit Report.) How do you quantify the relevance of that 30% to the whole value of the property if it was lost? Would it only lose the 30%, more or less even? I will still invest but reduce my target level. Considering it is only 10% & for 6 months (likely to be shorter due to quick refinance) I'm talking myself out of this one completely.
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Grezza
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Post by Grezza on Feb 26, 2015 22:19:33 GMT
So with a significantly higher LTV, I would have expected the interest rate offered to have been increased too....... or am I missing something?
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j
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Post by j on Feb 27, 2015 11:47:49 GMT
This might put our mind to rest:
"How experienced is the CS in question who indicated a 30% worst case loss without a Mundic test? Admittedly,I had never heard of the test before reading on this loan & having read about it, some properties can be a total loss if the concrete totally breaks down. How do we know this is not applicable to this property & is there any relevant & full insurance in case the decision not go ahead with the test proves unsatisfactory."
The following answer has been provided:
"The valuer has been operating in the local area since 1988 and they are also authorised to carry out mundic block testing, therefore, they have a lot of experience in this particular issue.
It is not the whole property that could suffer from the mundic issue, just the extension, with the rest of the building being stone built in the late 18th century/early 19th century. To our knowledge, there is no insurance available for this, however, we have revised our lending based on the lower valuation given in the event that the mundic status is not determined and the LTV remains low at 51%.
With repayment coming from the sale of another property, we do not believe the redemption of our loan will be affected by the decision not to undertake a test given all the mitigating factors."
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mikes1531
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Post by mikes1531 on Feb 27, 2015 22:08:17 GMT
Possibly because 30% of the area of the building might be affected by the concrete question? (As per the Credit Report.) How do you quantify the relevance of that 30% to the whole value of the property if it was lost? Would it only lose the 30%, more or less even? Possibly by relying on valuation methods that ascribe values based on £/square foot comparables. I'm personally not a firm believer in such methods, but they do seem to appear regularly in valuation reports.
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unmadem
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Post by unmadem on Mar 2, 2015 17:05:57 GMT
drawndown now.
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sqh
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Post by sqh on Mar 2, 2015 17:10:04 GMT
This one has gone live with very little fanfare. I was very lucky to have over 2.9k available and picked up far more than I expected. I've been zeroed out so I'm wondering what the maximum was.
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oldgrumpy
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Post by oldgrumpy on Mar 2, 2015 17:18:43 GMT
Yes, it looks like AC has no intention of giving any notice of imminent drawdown so funds can be deposited to cover targets. (I was lucky too - full requirement - just happened to have some cash in situ)
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unmadem
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Post by unmadem on Mar 2, 2015 17:23:23 GMT
Yes, it looks like AC has no intention of giving any notice of imminent drawdown so funds can be deposited to cover targets. (I was lucky too) yeah it is very annoying that you have to leave cash sitting around uninvested. I too had cash available but if another one drawsdown suddenly tomorrow I wouldn't.
EDIT and obviously particularly troublesome in conjunction with the longer funding timing for AC well covered on other threads. Better warning on drawdown time table is however within the control of AC
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oldgrumpy
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Post by oldgrumpy on Mar 2, 2015 17:29:08 GMT
Enough people have asked (nicely) enough times.
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tonyr
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Post by tonyr on Mar 2, 2015 17:29:11 GMT
This one has gone live with very little fanfare. I was very lucky to have over 2.9k available and picked up far more than I expected. I've been zeroed out so I'm wondering what the maximum was. I picked up £7.5k at 16:48 and I wasn't "zeroed out". There were many lots of £1400 or £1500 so it looks to me as though there were only five people (myself included) who had set large enough targets for this on drawdown to hit maximum allocation.
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