am
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Post by am on Jul 11, 2016 16:18:31 GMT
The first question coming to my mind is has MT/BPF seen the EPC certificate? (And what is the rating?)
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hazellend
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Post by hazellend on Jul 11, 2016 17:42:56 GMT
The first question coming to my mind is has MT/BPF seen the EPC certificate? (And what is the rating?) Please explain why this matters for a loan?
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am
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Post by am on Jul 11, 2016 18:06:42 GMT
The first question coming to my mind is has MT/BPF seen the EPC certificate? (And what is the rating?) Please explain why this matters for a loan? At a point in the relatively near future it will be illegal to rent properties with particularly bad energy ratings. Such properties will have less appeal to the buy-to-let market, and will be harder to sell. They will also be harder to obtain a BTL mortgage for them. I don't expect that this property falls into that class (or if it does upgrading the EPC will be included in the refurbishment program), but I think this point falls under the principle of "trust but verify". (The property was bought out of probate, so it's more likely to be in a dated condition than a random property.)
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hazellend
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Post by hazellend on Jul 11, 2016 21:26:34 GMT
Thanks for the info!
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dovap
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Post by dovap on Jul 12, 2016 8:31:40 GMT
Bit confused by this one - the property has been acquired by the borrower already but as far as I can see this cost hasn't been disclosed ?
We do have a heavily redacted valuation to go on (is this level of redaction necessary ?) which seems a touch optimistic and would be interesting to see how the two figures compare.
(the EPC stuff was rated at D if the previous marketing material when going to auction was reliable. The guide price was also much lower btw.) (from a quick scout around as I'm familiar with the area)
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Post by bengilbert on Jul 12, 2016 8:39:03 GMT
The first question coming to my mind is has MT/BPF seen the EPC certificate? (And what is the rating?) Yes, we have seen the certificate. The property has a current Energy Efficiency Rating of 67 (D) and a potential rating of 85 (B), and a current Environmental Impact Rating of 62 (D) with potential rating of 83 (B). Hope this helps.
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pom
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Post by pom on Jul 12, 2016 8:51:01 GMT
Bit confused by this one - the property has been acquired by the borrower already but as far as I can see this cost hasn't been disclosed ? We do have a heavily redacted valuation to go on (is this level of redaction necessary ?) which seems a touch optimistic and would be interesting to see how the two figures compare. (the EPC stuff was rated at D if the previous marketing material when going to auction was reliable. The guide price was also much lower btw.) (from a quick scout around as I'm familiar with the area) Unless executors have an incentive to be patient probate sales are often nowhere near market value so it'd be pretty irrelevant anyway. And guide prices are generally much lower than reserves/prices achieved to hook people in (even more so as listings often show the bottom of the guide range rather than the top).
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dovap
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Post by dovap on Jul 12, 2016 9:09:40 GMT
Bit confused by this one - the property has been acquired by the borrower already but as far as I can see this cost hasn't been disclosed ? We do have a heavily redacted valuation to go on (is this level of redaction necessary ?) which seems a touch optimistic and would be interesting to see how the two figures compare. (the EPC stuff was rated at D if the previous marketing material when going to auction was reliable. The guide price was also much lower btw.) (from a quick scout around as I'm familiar with the area) Unless executors have an incentive to be patient probate sales are often nowhere near market value so it'd be pretty irrelevant anyway. And guide prices are generally much lower than reserves/prices achieved to hook people in (even more so as listings often show the bottom of the guide range rather than the top). I'd have thought the probate/auction sale value (nowhere near market value) would be a useful indicator of what you could reasonably expect if you needed to shift it quickly (at nowhere near 'market' value for example). seems not.
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pom
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Post by pom on Jul 12, 2016 10:13:03 GMT
Unless executors have an incentive to be patient probate sales are often nowhere near market value so it'd be pretty irrelevant anyway. And guide prices are generally much lower than reserves/prices achieved to hook people in (even more so as listings often show the bottom of the guide range rather than the top). I'd have thought the probate/auction sale value (nowhere near market value) would be a useful indicator of what you could reasonably expect if you needed to shift it quickly (at nowhere near 'market' value for example). seems not. Well yes and no - it's amazing what a difference to value that even a minor refurb can make - far more likely to be worth selling "normally" rather than via auction, and if it were re-auctioned the reserve price would also likely be higher
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Post by bengilbert on Jul 12, 2016 11:04:35 GMT
Bit confused by this one - the property has been acquired by the borrower already but as far as I can see this cost hasn't been disclosed ? We do have a heavily redacted valuation to go on (is this level of redaction necessary ?) which seems a touch optimistic and would be interesting to see how the two figures compare. (the EPC stuff was rated at D if the previous marketing material when going to auction was reliable. The guide price was also much lower btw.) (from a quick scout around as I'm familiar with the area) The borrower agreed a purchase price of £165,000 for a quick exchange of contracts, which was accepted. We pressed the valuer on the difference between his 90-day valuation and the purchase price, and the valuer was confident that his figure was correct based on comparables. The borrower is a limited company which owns another property with c. £175,000 of equity (£350,000 market value, £175,000 borrowings). For additional security, we have a debenture over the company as well as a personal guarantee. We have a long-standing relationship with the borrower and they have always made repayments on time. As always, we are putting our own money into this loan on a first loss basis.
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am
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Post by am on Jul 12, 2016 11:04:51 GMT
The first question coming to my mind is has MT/BPF seen the EPC certificate? (And what is the rating?) Yes, we have seen the certificate. The property has a current Energy Efficiency Rating of 67 (D) and a potential rating of 85 (B), and a current Environmental Impact Rating of 62 (D) with potential rating of 83 (B). Hope this helps. Thankyou
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dovap
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Post by dovap on Jul 12, 2016 11:24:45 GMT
Bit confused by this one - the property has been acquired by the borrower already but as far as I can see this cost hasn't been disclosed ? We do have a heavily redacted valuation to go on (is this level of redaction necessary ?) which seems a touch optimistic and would be interesting to see how the two figures compare. (the EPC stuff was rated at D if the previous marketing material when going to auction was reliable. The guide price was also much lower btw.) (from a quick scout around as I'm familiar with the area) The borrower agreed a purchase price of £165,000 for a quick exchange of contracts, which was accepted. We pressed the valuer on the difference between his 90-day valuation and the purchase price, and the valuer was confident that his figure was correct based on comparables. The borrower is a limited company which owns another property with c. £175,000 of equity (£350,000 market value, £175,000 borrowings). For additional security, we have a debenture over the company as well as a personal guarantee. We have a long-standing relationship with the borrower and they have always made repayments on time. As always, we are putting our own money into this loan on a first loss basis. thanks for the additional info (fwiw guide was £150K Oct 2015)
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pom
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Post by pom on Jul 12, 2016 12:03:12 GMT
Bit confused by this one - the property has been acquired by the borrower already but as far as I can see this cost hasn't been disclosed ? We do have a heavily redacted valuation to go on (is this level of redaction necessary ?) which seems a touch optimistic and would be interesting to see how the two figures compare. (the EPC stuff was rated at D if the previous marketing material when going to auction was reliable. The guide price was also much lower btw.) (from a quick scout around as I'm familiar with the area) The borrower agreed a purchase price of £165,000 for a quick exchange of contracts, which was accepted. We pressed the valuer on the difference between his 90-day valuation and the purchase price, and the valuer was confident that his figure was correct based on comparables. The borrower is a limited company which owns another property with c. £175,000 of equity (£350,000 market value, £175,000 borrowings). For additional security, we have a debenture over the company as well as a personal guarantee. We have a long-standing relationship with the borrower and they have always made repayments on time. As always, we are putting our own money into this loan on a first loss basis. That figures - I had some ridiculously low offers for land I was selling under probate from developers chancing their luck (lowest was less than 50% of asking price). I told them where to go and agreed a sale less than 2 months later for a mere 10% below (and if it hadn't been a difficult plot whose value was reliant on someone wanting it for their forever home rather than to make money I'd have held out longer). But I can quite understand how executors under pressure to wind up an estate and with no real interest in the property would be glad to get rid.
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ilmoro
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Post by ilmoro on Jan 5, 2017 20:08:48 GMT
MoneyThing bengilbertHappy New Year to you both & the Things Is this loan still expected to be extended when it reaches term next week (Thurs) as per last update? Any idea if it will be 3 or 6 months?
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Post by bengilbert on Jan 5, 2017 20:25:24 GMT
MoneyThing bengilbert Happy New Year to you both & the Things Is this loan still expected to be extended when it reaches term next week (Thurs) as per last update? Any idea if it will be 3 or 6 months? It will be extended, most likely for 6 months, though we expect it to repay sooner than that.
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