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Post by ladywhitenap on Oct 6, 2016 11:10:12 GMT
Although the description says that no development work will be undertaken in the lifetime of this loan, will it be written into the agreement that absolutely no work will be done that might undermine the value of the security such as any demolition? Without this our security could reduce to simply the land with outline planning permission alone rather than including the dwelling that is included in the VR.
LW
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Post by wickedxuk on Oct 6, 2016 14:19:07 GMT
Although the description says that no development work will be undertaken in the lifetime of this loan, will it be written into the agreement that absolutely no work will be done that might undermine the value of the security such as any demolition? Without this our security could reduce to simply the land with outline planning permission alone rather than including the dwelling that is included in the VR. LW might be able to clarify for you further.
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Post by ladywhitenap on Oct 6, 2016 14:33:19 GMT
I've raised it with them directly now but I was hoping they might reply on here for the edification of all potential lenders.
I'll forward any response I get here.
LW
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Post by ladywhitenap on Oct 6, 2016 15:47:01 GMT
I've raised it with them directly now but I was hoping they might reply on here for the edification of all potential lenders. I'll forward any response I get here. LW George has responded thus "Thank for getting in contact. I can confirm that no work will be carried out for the duration of the loan. Kind regards, Customer Services Team Saving Stream" LW
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Oct 8, 2016 11:45:46 GMT
I wonder if there is an insurance policy clause in the loan agreement to protect us against "unfortunate" fire damage within the term?
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mikes1531
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Post by mikes1531 on Oct 8, 2016 12:40:46 GMT
I wonder if there is an insurance policy clause in the loan agreement to protect us against "unfortunate" fire damage within the term? That sounds like a question for savingstream to answer.
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fp
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Post by fp on Oct 8, 2016 13:41:01 GMT
All properties should be insured as a term of the loan, if it isn't a standard term of the loan agreement I would strongly advise withdrawing from all loans.
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Post by martin44 on Oct 8, 2016 13:49:20 GMT
Yep ... pretty bog standard stuff, no lender would lend against a property without insurance in place, in my experience i have always been asked to forward a copy onto the lender and occasionally it has been a loan requirement that i sign a declaration that i will re-insure the property if the current policy lapses or voids in any way.
Afterthought, Hope it is not a standard Home Buildings Policy, some insurance companies are a bit tetchy about houses that are unoccupied for over 30 days, i think this house is empty, correct me if wrong.
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mikes1531
Member of DD Central
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Post by mikes1531 on Oct 8, 2016 17:04:06 GMT
Yep ... pretty bog standard stuff, no lender would lend against a property without insurance in place, in my experience i have always been asked to forward a copy onto the lender and occasionally it has been a loan requirement that i sign a declaration that i will re-insure the property if the current policy lapses or voids in any way. Afterthought, Hope it is not a standard Home Buildings Policy, some insurance companies are a bit tetchy about houses that are unoccupied for over 30 days, i think this house is empty, correct me if wrong. It may be a 'requirement', but the critical question is whether the lender verifies that insurance actually is in place and is appropriate for the circumstances.
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Post by martin44 on Oct 8, 2016 17:32:05 GMT
Yep ... pretty bog standard stuff, no lender would lend against a property without insurance in place, in my experience i have always been asked to forward a copy onto the lender and occasionally it has been a loan requirement that i sign a declaration that i will re-insure the property if the current policy lapses or voids in any way. Afterthought, Hope it is not a standard Home Buildings Policy, some insurance companies are a bit tetchy about houses that are unoccupied for over 30 days, i think this house is empty, correct me if wrong. It may be a 'requirement', but the critical question is whether the lender verifies that insurance actually is in place and is appropriate for the circumstances. Not only will the lender need verification ,they should indeed demand sight/a copy of the insurance policy, and judge for themselves as to the suitability, i doubt any lender would lend money on an asset without suitable insurance in place. Whether SS have actually seen any insurance policies, is anyone's guess.
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ben
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Post by ben on Oct 8, 2016 21:03:34 GMT
I would hope that SS have seen a copy of all the insurance on all the loans they lend.
However I think the orginal point was as it states no work would be undertken throughout the loan would it be written into the loan, that there be no work undertaken, the reply from SS does not answer that question.
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Post by martin44 on Oct 8, 2016 21:12:33 GMT
I would hope that SS have seen a copy of all the insurance on all the loans they lend. However I think the orginal point was as it states no work would be undertken throughout the loan would it be written into the loan, that there be no work undertaken, the reply from SS does not answer that question. SS responded . George has responded thus "Thank for getting in contact. I can confirm that no work will be carried out for the duration of the loan. Kind regards, Customer Services Team Saving Stream" my bold. LW
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ben
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Post by ben on Oct 8, 2016 21:15:50 GMT
That what the borrorower is saying but is there actually anything written into the loan to state that they can't. Suprisingly the borrowers do not always tell the truth just what you want to hear.
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Post by martin44 on Oct 8, 2016 21:25:49 GMT
That what the borrorower is saying but is there actually anything written into the loan to state that they can't. Suprisingly the borrowers do not always tell the truth just what you want to hear. After the SS response, i would hope so.
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oldgrumpy
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Post by oldgrumpy on Oct 8, 2016 21:48:21 GMT
Perhaps SS should be asked directly, "does the loan agreement include a specific stipulation that no work should be done on the property while the loan is outstanding".
Incidentally, I do wonder why the valuation is so very high, and also how closely the loan is related to the Cornwall one in Camelford (also with a surprisingly high valuation).
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