mikes1531
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Post by mikes1531 on Oct 9, 2014 21:30:00 GMT
What would be the purpose of offering the borrower a new loan? Just to allow them a bit more time to sell the property? Bigger loan perhaps? I could see that, if the borrower was going to do the development themselves they'd want a development loan, but the particulars indicate that they have an offer from a builder/developer to buy the property if it received the planning permission, so I was expecting them to accept that offer as soon as they could. I don't see the point of hanging onto the property just so that they could raise more cash via a bigger loan -- and pay 12+% interest -- when they could sell the property and raise even more cash interest-free. But I'm not a developer, so perhaps there's something I don't understand here.
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Post by mrclondon on Oct 9, 2014 22:27:28 GMT
Caution is perhaps needed until the status of this planning is clear either on the council's website or SS have coresponding legal documentation. AC look to have fallen into a trap a few months ago when they thought they had been told a planning application had been approved, when in fact it had been accepted (validated) by the planning department.
In this case the planning department website is showing the earliest decision date of today (9th Oct) with a traget decision date of 2nd December. The timing of SS's post today was before 9am which raises an immediate question mark.
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star dust
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Post by star dust on Oct 10, 2014 9:46:39 GMT
Caution is perhaps needed until the status of this planning is clear either on the council's website or SS have coresponding legal documentation. AC look to have fallen into a trap a few months ago when they thought they had been told a planning application had been approved, when in fact it had been accepted (validated) by the planning department. In this case the planning department website is showing the earliest decision date of today (9th Oct) with a traget decision date of 2nd December. The timing of SS's post today was before 9am which raises an immediate question mark. I had noticed the planning approval timeframe myself, and wondered if this was a bit of an obvious as to why they wanted to renew the loan. A six month rollover gives time for approval and then time for sale to a/the developer. One assumes they worked with Council officers on the re-submission, and even though I’ve only skimmed the info it seems the density concern has been addressed in the new application, although I think the access issue is down to site geography so not sure how this would/ has been addressed. IIRC the original application was secured against a commercial property as well as the land, but then this was restructured before going ‘live’ due to sale of the commercial property. If there was some extra security and/ or a very clear exit strategy in the event of a second planning refusal, then I’d be happy to go with a re-investment in a 'rolled' loan myself. I guess we will have to wait and see what transpires in the details.  Edit: Should've looked further back in the thread first, the original loan did involve additional security and was restructured!
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mikes1531
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Post by mikes1531 on Oct 10, 2014 10:57:04 GMT
Caution is perhaps needed until the status of this planning is clear either on the council's website or SS have coresponding legal documentation. AC look to have fallen into a trap a few months ago when they thought they had been told a planning application had been approved, when in fact it had been accepted (validated) by the planning department. In this case the planning department website is showing the earliest decision date of today (9th Oct) with a traget decision date of 2nd December. The timing of SS's post today was before 9am which raises an immediate question mark. If you check the Planning Committee timetable you will see that they don't meet until the 29th of October and therefore Planning Approval would not be decided until that day. So what do we think really happened? The planning officer told the borrower that they would be recommending approval? Or maybe when asked where things stood the officer simply said they were leaning toward recommending approval? And the borrower interpreted that as approval was assured? And by the time the message was passed along a few more times it had morphed into permission had been granted? This sounds like a triumph of hope over reality! 
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star dust
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Post by star dust on Oct 10, 2014 11:31:36 GMT
This sounds like a triumph of hope over reality! Well, unless we're all looking at the wrong piece of land / planning application  . Let's be charitable and say garbled messages. I think only SS will be able to answer this one.
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Post by savingstream on Dec 2, 2014 18:34:04 GMT
The planning decision was deferred until the 5th of Jan. A site visit is being conducted before xmas. We will be providing an update on this loan to all investors this week once we have agreed a way forward with the borrower.
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. Let's be charitable and say garbled messages.
