j
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Post by j on May 27, 2014 13:20:02 GMT
This loan seems to be flying out of the door. Over 35% financed already. Yield is obviously very attractive at 1.5%/month but is only for 3-month. LTV is pretty bad at 89% with second charge and this is very high value property so it's really not transparent there is any buffer at all. Seems that you have to take a bet on the £1.2mm cashflow materializing. Is this loan such an obviously good lend or is this just a case of carry being too attractive for many to turn down? The property was valued @ £4m initially & struggled to sell, but the credit report indicates offers were made at a lower value. If the owner is now selling @ a near 20% discount or £3.25m, there is a much better chance of selling. Plus, that £1.2m proceed from the business venture could be collected in the meantime which would render selling property unnecessary. Worth the risk, imho but do make your own decision if you're risk averse
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j
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Post by j on May 27, 2014 13:23:33 GMT
A note also, the last loan was @ 1.25% pm, this one states 1.5% despite AC indicating in their old loan notes that extension is at same rate. I think some clarification is needed here. I'm guessing as it's a very short loan it will be at the higher rate, but can andrewholgate confirm either way? |
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j
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Post by j on May 27, 2014 13:55:54 GMT
A note also, the last loan was @ 1.25% pm, this one states 1.5% despite AC indicating in their old loan notes that extension is at same rate. I think some clarification is needed here. I'm guessing as it's a very short loan it will be at the higher rate, but can andrewholgate confirm either way? Confirmation now given that the rate will be 1.5% pm (18% pa), as per q&a page on AC's website
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Post by Ton ⓉⓞⓃ on May 27, 2014 13:59:40 GMT
If you put in shadow bids covering the same amount you already have in South M. do you need to put in an extra money, or will their repayment somehow get back to South M? If that makes sense...
Does the borrower own the house outright except for the charges? As the LTV doesn't quite compute. I.E. How much is the other debt that he must have and is it the mortgage?
IN EDIT the debt question is answered in the Q&A.
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j
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Post by j on May 27, 2014 14:03:48 GMT
If you put in shadow bids covering the same amount you already have in South M. do you need to put in an extra money, or will their repayment somehow get back to South M? If that makes sense... Does the borrower own the house outright except for the charges? As the LTV doesn't quite compute. I.E. How much is the other debt that he must have and is it the mortgage? , you can email AC & request they increase your shadow bid limit accordingly. Re:ltv, I think a prior charge of over £2m, can't remember exact figure without going back to report, one assumes is a mortgage charge. Add the £600k loan & that will give a total ltv of almost 90%
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j
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Post by j on May 27, 2014 14:23:40 GMT
If you put in shadow bids covering the same amount you already have in South M. do you need to put in an extra money, or will their repayment somehow get back to South M? If that makes sense... Does the borrower own the house outright except for the charges? As the LTV doesn't quite compute. I.E. How much is the other debt that he must have and is it the mortgage? , you can email AC & request they increase your shadow bid limit accordingly. Re:ltv, I think a prior charge of over £2m, can't remember exact figure without going back to report, one assumes is a mortgage charge. Add the £600k loan & that will give a total ltv of almost 90% just seen your 'edit' comment Ton ⓉⓞⓃ, so ignore the duplication 
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Post by Ton ⓉⓞⓃ on May 27, 2014 14:37:52 GMT
If you put in shadow bids covering the same amount you already have in South M. do you need to put in any extra money, or will their repayment somehow get back to South M? If that makes sense... With the shadow bid half of my question, if anyone's else is interested, appears to be answered in the First loan to the Borrower No.51 I quote it, "There will be no issue with lenders rolling their holdings in the old loan into the new loan if they are happy to do so. Those with a shadow bid facility will be able to do this on a shadow bid and we will ensure that their funds are returned from the existing loan to ensure placement in and drawdown of the new loan."
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ianj
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Post by ianj on May 27, 2014 15:21:20 GMT
If you put in shadow bids covering the same amount you already have in South M. do you need to put in any extra money, or will their repayment somehow get back to South M? If that makes sense... With the shadow bid half of my question, if anyone's else is interested, appears to be answered in the First loan to the Borrower No.51 I quote it, "There will be no issue with lenders rolling their holdings in the old loan into the new loan if they are happy to do so. Those with a shadow bid facility will be able to do this on a shadow bid and we will ensure that their funds are returned from the existing loan to ensure placement in and drawdown of the new loan." Sorry if this sounds like a daft question but how do lenders without a shadow bid facility "roll their holdings in the old loan into the new loan"?
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j
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Post by j on May 27, 2014 15:26:10 GMT
With the shadow bid half of my question, if anyone's else is interested, appears to be answered in the First loan to the Borrower No.51 I quote it, "There will be no issue with lenders rolling their holdings in the old loan into the new loan if they are happy to do so. Those with a shadow bid facility will be able to do this on a shadow bid and we will ensure that their funds are returned from the existing loan to ensure placement in and drawdown of the new loan." Sorry if this sounds like a daft question but how do lenders without a shadow bid facility "roll their holdings in the old loan into the new loan"? , if you email/ring AC & let them know, they will be able to create a shadow bid account, at least for this loan if not for others, to allow roll up into new loan. You need to get going though as this one looks like it won't last the full 7 days advertised despite being a decent size
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ianj
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Post by ianj on May 27, 2014 15:36:44 GMT
Sorry if this sounds like a daft question but how do lenders without a shadow bid facility "roll their holdings in the old loan into the new loan"? , if you email/ring AC & let them know, they will be able to create a shadow bid account, at least for this loan if not for others, to allow roll up into new loan. You need to get going though as this one looks like it won't last the full 7 days advertised despite being a decent size Thanks j. Call made and all sorted in no time.
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oldgrumpy
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Post by oldgrumpy on May 27, 2014 16:02:14 GMT
There shouldn't need to be a shadow bidding necessity for "rolling over". The cash will be there, guaranteed, and AC will have it, so AC needs to provide a facility for rolling over to all existing lenders without recourse to their shadow bid allowance. As it stands, nearly a quarter of my shadow bidding facility is taken up just waiting until 11 June for the initial loan to mature. What with the astonishingly slow rate of progress towards drawdown of certain other loans, I am now shadowing "at capacity". andrewholgate (or sidekicks) is there any way round this? (or plans to develop a way).  |
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andy2001
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Post by andy2001 on May 27, 2014 17:29:04 GMT
Is rolling over funds to the 2nd loan using a shadow bid just a matter of a manual settlement of the shadow bid some time on the 11th of June. My one bid in this loan is a little more than my current holding in the first loan, so will be a mix of money already in the account and funds from the first loan.
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bg
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Post by bg on May 27, 2014 18:14:35 GMT
I was just looking on Zoopla to see if I can find the property. I'm not familiar with the area but I can't find anything for a place called 'Bowden' (as stated in various places in the credit report) on Zoopla (or even on google maps). There is however this 7 bed property for that price in 'Bowdon'
Wonder if that's it. If so, pretty bad spelling the name of the town wrong. BB: Mod comments: I have removed the link to the property listing: if the link is correct then it identifies the borrower in public domain. |
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j
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Post by j on May 27, 2014 18:50:12 GMT
I was just looking on Zoopla to see if I can find the property. I'm not familiar with the area but I can't find anything for a place called 'Bowden' (as stated in various places in the credit report) on Zoopla (or even on google maps). There is however this 7 bed property for that price in 'Bowdon': MOD EDIT LINK REMOVED
Wonder if that's it. If so, pretty bad spelling the name of the town wrong. Looking at the property, one can be forgiven getting one letter wrong. Well spotted. It does look stunning though. So, that's what £3.25m can get you  Phew
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star dust
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Post by star dust on May 27, 2014 19:01:32 GMT
I was just looking on Zoopla to see if I can find the property. I'm not familiar with the area but I can't find anything for a place called 'Bowden' (as stated in various places in the credit report) on Zoopla (or even on google maps). There is however this 7 bed property for that price in 'Bowdon': MOD EDIT LINK REMOVED
Wonder if that's it. If so, pretty bad spelling the name of the town wrong. It seems there's more than one way of spelling it. According to a local blog "Ormerod says that the name Bowdon consists of two Saxon words bow a dwelling, an abode, and don or dun a plain on a hill, ie a down. ..........It was also often spelled Bowden up to the end of the 20th century." If you search on Rightmove for "Bowden" it gives results for Bowdon.
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Phew