ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Feb 15, 2017 23:33:19 GMT
Too true blender. However, one of my investment Criteria is "Would I hold it to Term?" because "What if the Secondary Market seizes up?"
tbh I also find some of the SMs beyond me, FS eg!!!!
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stevio
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Post by stevio on Feb 16, 2017 4:52:00 GMT
Might be worth noting that the SM rates often drop when there is a new loan on AB as people sell loans to partake in the new loan, so there is an opportunity to diversify across the platform, often at par, which is useful if you missed out on previous loans or if you are just starting to build a portfolio on AB With the SS going down hill with rates and overdue loans, might be worth looking at AB if you haven't already
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blender
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Post by blender on Feb 16, 2017 7:45:53 GMT
Might be worth noting that the SM rates often drop when there is a new loan on AB as people sell loans to partake in the new loan, so there is an opportunity to diversify across the platform, often at par, which is useful if you missed out on previous loans or if you are just starting to build a portfolio on AB With the SS going down hill with rates and overdue loans, might be worth looking at AB if you haven't already Quite right Stevio. I have done some of that selling. With no fees and instant returns there is no reason not to diversify into a new good loan. (OK it may fail to fill but I will take that small chance). New loans for old!
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SteveT
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Post by SteveT on Feb 16, 2017 10:06:24 GMT
Impressive to see a £750k Ablrate loan more than 50% filled in just 18 hours!
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Post by d_saver on Feb 16, 2017 10:19:35 GMT
Impressive to see a £750k Ablrate loan more than 50% filled in just 18 hours! Yes, I was a bit surprised by the speed given it's size, but I think the 14% has something to do with it... I'm still undecided, but me-thinks I'd better make my mind up sooner rather than later at this rate.
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Post by d_saver on Feb 16, 2017 10:34:59 GMT
ablrate, are you able to answer a couple of queries re this loan, please? Does the company currently own the units and these are part of the assets in the accounts, or is the loan being used to purchase them? I understand the loan is being used for refurb of the units and 'other' working capital, but not sure if they already own the units and these were leased to the other co. Is the lease agreement already in place, or will be in place prior to draw down? It's not just a non-binding agreement at this time? Have you seen it? Just want to know minimum guaranteed lease period. Do you have a first charge over the units too, or just over the rent? Apologies if you covered some of this in your excellent docs, but after reading them, I'm still not totally clear on the above. Many thanks.
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Post by ablrate on Feb 16, 2017 10:35:58 GMT
Thanks for the bids guys. Just putting your questions to the borrower.
Regards Ablrate
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Post by ablrate on Feb 16, 2017 13:04:01 GMT
Answers from the borrower:
The primary security is a chattel mortgage. This security item will specifically capture the 22 Portakabin units comprising the modular scheme at P****** S****** and will be supplemented with an assignment of the rental income. The borrower will retain control of the rental income whilst he loan is operating to terms and fund loan interest payments from this source. In the event of an enforcement situation the assignment provides lenders with the ability to also capture the ongoing rental income (i.e. payments would be made directly from P******* S******* to lender). The borrower will retain legal title to the Portakabins at all times and they will be charged to Ablrate Lenders (via the security agent)
The chattel mortgage will be registered in accordance with the CA 2006.
The Portakabin units are used and refurbished.
The units are now in situ having been acquired (from a connected company), refurbished, delivered and installed. The ongoing position is documented by a signed rolling 12-month rental agreement. Whilst there can be no guarantee that the tenancy will extend past 12-months, it should be noted that the project has involved substantial upfront costs (in excess of £250k) paid by P********* S******** to be able to provide a usable accommodation solution. Thus, the directors have taken the view that the investment decision is supported by the prospects of a longer (rather than shorter) rental period. The director's current expectation is that the units will be in situ (and therefore income producing) for at least 5 years but potentially up to 15.
Please note that as this is an amortising loan that even should the break option be exercised on day 1 then the value of the assets is well in excess of the debt at the point the contract expires.
The loan is to refinance the capital within this transaction so that the company can purchase further units for similar projects, thus increasing the revenue of the company overall.
- We are awaiting other responses.
--
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Feb 16, 2017 13:31:09 GMT
Answers from the borrower: The primary security is a chattel mortgage. This security item will specifically capture the 22 Portakabin units comprising the modular scheme at P****** S****** and will be supplemented with an assignment of the rental income. The borrower will retain control of the rental income whilst he loan is operating to terms and fund loan interest payments from this source. In the event of an enforcement situation the assignment provides lenders with the ability to also capture the ongoing rental income (i.e. payments would be made directly from P******* S****** to lender). The borrower will retain legal title to the Portakabins at all times and they will be charged to Ablrate Lenders (via the security agent) The chattel mortgage will be registered in accordance with the CA 2006. The Portakabin units are used and refurbished. The units are now in situ having been acquired (from a connected company), refurbished, delivered and installed. The ongoing position is documented by a signed rolling 12-month rental agreement. Whilst there can be no guarantee that the tenancy will extend past 12-months, it should be noted that the project has involved substantial upfront costs (in excess of £250k) paid by P********* S******** to be able to provide a usable accommodation solution. Thus, the directors have taken the view that the investment decision is supported by the prospects of a longer (rather than shorter) rental period. The director's current expectation is that the units will be in situ (and therefore income producing) for at least 5 years but potentially up to 15. Please note that as this is an amortising loan that even should the break option be exercised on day 1 then the value of the assets is well in excess of the debt at the point the contract expires. The loan is to refinance the capital within this transaction so that the company can purchase further units for similar projects, thus increasing the revenue of the company overall. - We are awaiting other responses. -- A lot of asterix have died in vain there as one reference to location/user has been missed
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Post by ablrate on Feb 16, 2017 15:11:10 GMT
oops... thanks moderators!
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Feb 16, 2017 15:26:53 GMT
Absolutely, I too was under the impression that it was a five year Lease, not a 12 month rolling contract, makes a huge difference when considering this investment. Certainly this has stopped me from adding more today.
You're doing well ABLrate but from this I have to give you "Must try harder" on your Report Card. Hopefully you read The SS Topics and are listening and learning how not to withhold extremely important information and facts and lose Investors ( <- sounds like a good title for a Dale Carnegie book that!? ).
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elliotn
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Post by elliotn on Feb 16, 2017 16:11:01 GMT
Ditto. Abl, where a key part of the loan value resides in a contract/rental agreement can this be provided in the Documents section for go live please to compliment your excellent suite of reports.
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sirius
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Post by sirius on Feb 16, 2017 16:39:55 GMT
Hi all
As a Newbie to P2P, I can state that having placed 1K on this loan, on the understanding that the rental was for 5-15 years, I am not amused at the revelation today that it is actually a 12 month rolling contract.
I would have refrained from investment if that extremely material fact had been revealed earlier.
I trust Ablrate will do the honourable thing should this go t*ts up.
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sirius
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Post by sirius on Feb 16, 2017 17:31:16 GMT
Despite being told 4 hrs ago about the 12 month rolling contract, and the fact that the Portacabins are already at P******* S******, the site still reads:
"The funds are required to finance the costs of supplying and installing the Property at P******* S******.
The agreement with P******* S****** will generate £19,042 pm / £228,500 pa of income. The loan will be repaid by way of monthly payments of interest and capital financed through the rental income generated from the Property and supplemented by Company profit".
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Post by ablrate on Feb 16, 2017 20:52:47 GMT
I will pass this to the borrower for a response, but if you would like to cancel your bids then no problem we will deal with it.
The asset coverage is great, the lessee is unlikely to quit after such expense up front and there are a multitude of guarantees.
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