cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Aug 16, 2016 13:27:25 GMT
This Loan Is LIVE
| Loan Amount | : | £620,000
| | Security Value | : | £1,000,000
| | SS Indicated LTV | : | 62% | | 90 Day Market Valuation | : | Not Indicated | | LTV Based on 90 day Market Valuation | : | N/A |
PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)
Loan Information & Observations
Borrower
- Our borrower is a farmer and has owned the security (a farm) for more than 20 years.
- The borrower is looking to be debt free after the sale of land and buildings on the property with the view to retiring.
Loan
- The loan is to take out the existing debt on the property.
Security & Valuation Report
- The property comprises a livestock farm with a farmhouse, two cottages, a range of livestock farm buildings and pasture land in all extending to approximately 49 acres.
- The security is listed online (stags.co.uk) for a total of £1,250,000 but with an extra 26 Acres of land
- The inspection was undertaken on 29 February 2016; there is no information whether the farm is currently operating
Exit Strategy
- Sell the barn on the property along with three acres, and (separately) sell 45 acres of grassland.
- There seem to be some inconsistencies between the above exit plan which SS have set out, and the actual values indicated in the VR. This issue is addressed in adrianc 's post here
- The generation of income from farming operations and holiday lets and an equity release from the main property will generate more than enough to pay back anything outstanding of the borrowed amount
| Code Number Assigned | : | 16/08/16 | | Loan went live @ | : | 17/08/16 | | Allocation | : | £1300 | | Amount of Investors @ Live | : | 1088 |
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Liz
Member of DD Central
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Post by Liz on Aug 16, 2016 13:31:28 GMT
 This looks like a good loan to me. Although we will only get less than £500.
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adrianc
Member of DD Central
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Post by adrianc on Aug 16, 2016 14:18:46 GMT
I'm scratchin' my head...
From the description:
From the valuation doc:
So, lemme make sure I've got this straight...
The farmer's looking to pay off existing debt (<cough> Not, I hope, to Our Friendly Agricultural Financier?). He's looking to sell 45 acres of his current 47 - oops, sorry - 49 acres, and the barn together with 3 acres of the remaining 2 4 acres, and retire. All fair enough.
But the land's worth £7k - oops, sorry - £9k per acre, making a total of 47 x £7k = £329k - oops, sorry - 49 x £7k = £343k - oops, sorry - £300k - oops, sorry - 45 x £9k = £405k from that, and sell the barn (£50k) - so a total of £350k - oops, sorry - £379k - oops, sorry - £455k and pay off £620k from that. But that's OK, because he's going to earn more from farming operations (although he's sold all the land and is retiring) to pay the rest back, together with the income from the holiday cottages and equity release from the house.
So, umm, why doesn't he just pay the current debt back from that? Why's he taking on this debt to pay back the other debt, with an exit route of taking on different debt?
My head hurts. I think.
<shrug> I'd agree that the security's good enough. But I just don't understand what the borrower's hoping to achieve with all of this.
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Post by geraldine1210 on Aug 16, 2016 14:24:23 GMT
One would hope that somebody, maybe specialising in farm finance, hasn't encouraged him to take on this loan short term, with a view to sorting out a nice gentle interest rate elsewhere.
Hopefully that sort of financial advisor would be sent packing.
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jamesc
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Post by jamesc on Aug 16, 2016 14:44:01 GMT
Is this a working farm because it looks to me that in the pictures on the valuation documents that a lot of the windows on the cottages and outbuildings have corrugated iron on ( as in not being used) or is it just my poor eyesight ?
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registerme
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Post by registerme on Aug 16, 2016 14:51:40 GMT
Is this a working farm because it looks to me that in the pictures on the valuation documents that a lot of the windows on the cottages and outbuildings have corrugated iron on ( as in not being used) or is it just my poor eyesight ? See point 9 in the valuation doc.
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registerme
Member of DD Central
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Post by registerme on Aug 16, 2016 14:53:50 GMT
Interesting that the valuation was carried out nearly six months ago.
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jamesc
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Post by jamesc on Aug 16, 2016 14:58:05 GMT
Is this a working farm because it looks to me that in the pictures on the valuation documents that a lot of the windows on the cottages and outbuildings have corrugated iron on ( as in not being used) or is it just my poor eyesight ? See point 9 in the valuation doc. So good news my eyesight is ok but does not address the question why if this is a working farm so much of it was boarded up ?
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adrianc
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Post by adrianc on Aug 16, 2016 15:23:20 GMT
Also, if they're selling off a barn for residential conversion - which one? The only unconverted barn that looks viable seems to be part of the farmyard - but the holiday cottages (also part of the farmyard) can't be sold off because they're part of the farmyard.
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dan83
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Post by dan83 on Aug 16, 2016 15:59:38 GMT
I like these low value loans.
I'm in for £100.
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homes119
Member of DD Central
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Post by homes119 on Aug 16, 2016 17:44:42 GMT
Also, if they're selling off a barn for residential conversion - which one? The only unconverted barn that looks viable seems to be part of the farmyard - but the holiday cottages (also part of the farmyard) can't be sold off because they're part of the farmyard. I would also like to add that Point 15 of the valuation report states: "We are informed by the applicant that there are no restrictions on the residential use of the two cottages and at the date of inspection, there were no Planning Consents for conversion of the other farm buildings"SS exit strategy states: "The sale for the barn on the property along with three acres – this barn has Permitted Development Rights for a conversion to a house in excess of 3,000 square feet"Maybe a new valuation was conducted (which we do not have access to)?
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guff
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Post by guff on Aug 16, 2016 18:09:25 GMT
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Aug 16, 2016 18:28:44 GMT
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puffin
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Post by puffin on Aug 16, 2016 18:51:55 GMT
Not sure if the '  ' emote is for the scrambled link or it's contents.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Aug 16, 2016 19:00:04 GMT
Not sure if the ' ' emote is for the scrambled link or it's contents. I think the link is suppose to be the council's file xxxxxxxxxxxxxx Both.. I did end up deciphering the link I do see our barn hidden away in a list there, but don't see anything of any worry or to take note of?
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