ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,156
Likes: 4,830
|
Post by ozboy on Apr 26, 2017 13:48:27 GMT
Going live tomorrow, Thursday 27th, 2017 at 10am
Loan Amount: £1,560,000
Available*: £1,482,000
Asset Value: £2,400,000
Max. LTV: 65.0%
Interest Rate: 11%
Max. Bid: £5,000
Bid Restriction Duration 24hrs
As with all Broadoak loans, Broadoak will be investing 5% of the loan amount on a first loss basis.
|
|
|
Post by MoneyThing on Apr 26, 2017 13:49:24 GMT
Going live tomorrow, Thursday 27th, 2017 at 10am Loan Amount: £1,560,000 Available*: £1,482,000 Asset Value: £2,400,000 Max. LTV: 65.0% Interest Rate: 11% Max. Bid: £5,000 Bid Restriction Duration 24hrs As with all Broadoak loans, Broadoak will be investing 5% of the loan amount on a first loss basis. Thanks - you beat me to it!
|
|
GeorgeT
Member of DD Central
Posts: 1,321
Likes: 1,575
|
Post by GeorgeT on Apr 26, 2017 13:50:21 GMT
Please note carefully, folks:
Start time is 10am, and not the usual 4pm.
Set your alarms.
|
|
ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,156
Likes: 4,830
|
Post by ozboy on Apr 26, 2017 14:17:03 GMT
Given the absolute dross sloshing about on Other Platforms this one looks better than most. Not done my DD yet but will report if I spot anything.
|
|
gt94sss2
Member of DD Central
Posts: 281
Likes: 137
|
Post by gt94sss2 on Apr 26, 2017 14:46:45 GMT
Please note carefully, folks: Start time is 10am, and not the usual 4pm. MoneyThing Out of interest, could you say why the launch time isn't 4pm? (Though I appreciate different times of day might suit different people)
|
|
|
Post by MoneyThing on Apr 26, 2017 14:50:14 GMT
Please note carefully, folks: Start time is 10am, and not the usual 4pm. MoneyThing Out of interest, could you say why the launch time isn't 4pm? (Though I appreciate different times of day might suit different people) We wanted to be in a position for the borrower to be able to drawdown on Friday and therefore we thought it would be cutting it a little fine if we had launched it at 4pm tomorrow and then the restriction lifting at 4pm Friday to be able to finalise things with the solicitors. Ordinarily I would want to maintain the usual 4pm where possible. Regards, Ed.
|
|
elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Apr 26, 2017 15:29:26 GMT
MoneyThing Out of interest, could you say why the launch time isn't 4pm? (Though I appreciate different times of day might suit different people) We wanted to be in a position for the borrower to be able to drawdown on Friday and therefore we thought it would be cutting it a little fine if we had launched it at 4pm tomorrow and then the restriction lifting at 4pm Friday to be able to finalise things with the solicitors. Ordinarily I would want to maintain the usual 4pm where possible. Regards, Ed. Friday, so we are confident this will sell quicker than Putney, already some jockeying on SM.
|
|
jamesc
Member of DD Central
Posts: 447
Likes: 253
|
Post by jamesc on Apr 26, 2017 16:28:31 GMT
MoneyThing Out of interest, could you say why the launch time isn't 4pm? (Though I appreciate different times of day might suit different people) We wanted to be in a position for the borrower to be able to drawdown on Friday and therefore we thought it would be cutting it a little fine if we had launched it at 4pm tomorrow and then the restriction lifting at 4pm Friday to be able to finalise things with the solicitors. Ordinarily I would want to maintain the usual 4pm where possible. Regards, Ed. Just a suggestion but if you really need to drawdown on Friday pm and as you are changing your start date to 10am and given this is a large loan in one tranche, why not have a first £5k limit for the first six hours until 4pm and then a second £5k limit at 4pm until the free for all at 10am on Friday, still leaves plenty of time for people to get involved ?
|
|
|
Post by mrclondon on Apr 26, 2017 16:48:26 GMT
From a quick bit of googling of W*** E** Residential Park K***** I get the impression that the few resales of the the existing park homes are very slow, and have involved / are involving multiple price cuts to achieve a sale many months after first being advertised.
The loan details state :
"... and there are already a number of purchasers waiting to buy lodges as soon as they are in place."
"The loan will be repaid through the sale of the park homes."
"The borrowers intend to finance the build of the new lodges and houses by selling lodges once they are in place, and therefore do not anticipate any further borrowings"
Does anyone understand how this "business plan" is meant to work ? Is there really the demand ? What exactly is the profit generated by selling a lodge ?
|
|
hazellend
Member of DD Central
Posts: 2,361
Likes: 2,179
|
Post by hazellend on Apr 26, 2017 17:07:59 GMT
From a quick bit of googling of W*** E** Residential Park K***** I get the impression that the few resales of the the existing park homes are very slow, and have involved / are involving multiple price cuts to achieve a sale many months after first being advertised. The loan details state : "... and there are already a number of purchasers waiting to buy lodges as soon as they are in place."
"The loan will be repaid through the sale of the park homes."
"The borrowers intend to finance the build of the new lodges and houses by selling lodges once they are in place, and therefore do not anticipate any further borrowings"Does anyone understand how this "business plan" is meant to work ? Is there really the demand ? What exactly is the profit generated by selling a lodge ? Not sure but from personal experience I would say demand for second hand lodges is much lower than brand new ones. My parents just sold a highly desirable one which was good enough to live in, really lovely with beautful views in a very sought after scottish resort. They got 30% nominal drop on the price they paid for it 10 years ago. Probably more than 50% real drop. They did let it go for a steal though. The park also took 3% commision on the resale!
|
|
am
Posts: 1,495
Likes: 601
|
Post by am on Apr 26, 2017 17:35:33 GMT
From a quick bit of googling of W*** E** Residential Park K***** I get the impression that the few resales of the the existing park homes are very slow, and have involved / are involving multiple price cuts to achieve a sale many months after first being advertised. The loan details state : "... and there are already a number of purchasers waiting to buy lodges as soon as they are in place."
"The loan will be repaid through the sale of the park homes."
"The borrowers intend to finance the build of the new lodges and houses by selling lodges once they are in place, and therefore do not anticipate any further borrowings"Does anyone understand how this "business plan" is meant to work ? Is there really the demand ? What exactly is the profit generated by selling a lodge ? The lodge in situ with access to all the facilities on site is presumably more valuable than the prefabricated lodge (or kit) in the factory. The difference, less installation costs, is the profit. (Not that I can immediately tell whether this is a viable business plan.)
|
|
fogey
Posts: 171
Likes: 104
|
Post by fogey on Apr 26, 2017 18:23:45 GMT
New park homes are often very popular as a retirement solution for people wishing to release their existing home equity. They are also far less concerned about the shorter lifetime of the park home as their future time horizons are more limited.
Such a market is probably already well known to well established park developers and so they are always very keen to find new sites for siting new homes. Furthermore they can gain a regular income from the ground rent as well as commission on sales of previously owned homes.
There are a very large number of residential park home sites across the country and they are always keen to expand their business whenever the opportunity is available. So it is obviously a well established and profitable business although the mechanism may not be immediately obvious.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Apr 26, 2017 18:51:07 GMT
Living in a holiday area with more than it's fair share of such "park home" developments, I concur that they appear to be highly profitable and forever trying to gain consent to expand.
|
|
am
Posts: 1,495
Likes: 601
|
Post by am on Apr 26, 2017 20:26:48 GMT
I find the valuation report unhelpful, in that it doesn't explain how the valuation is calculated.
There are 4 elements to the security - 1) the house, 2) the capitalised value of the net site fees (ground rents and anything else charged) on 14 lodges, 3) the residual value of land with planning permission for 29 lodges, 4) two large plots with planning permission for detached houses, or 4a) two semi-detached houses on large plots.
I estimate the GDV for 3) as being approaching and probably in excess of £3m (sale prices of 29 lodges plus capitalised value of site fees), but I don't know what the development costs are, so I can't estimate a residual value. I haven't yet found the planning permission for the two building plots so I can't give a GDV estimate for these. However I think that 1) and 2) together are worth around £500,000, so the valuation of the land being purchased for £1.2m is considerably higher than the sale price. (Perhaps they made an offer subject to planning, and the current valuation includes an element reflecting planning uplift).
The site being purchased was previously derelict horticultural land (nurseries).
The local plan had a "minded to approve" 27 houses on this site. Presumably the borrowers prefer the proposed scheme as it's less capital intensive and possibly more profitable.
|
|
ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,156
Likes: 4,830
|
Post by ozboy on Apr 26, 2017 21:36:47 GMT
tbh I am simply not bright enough nor good enough with figures to run the numbers, probabilities, possibilities, permutations and computations, on this one. Is it fair to reason that if " Broadoak will be investing 5% of the loan amount on a first loss basis." then it's also reasonable to dip a three figure toe in the water?
|
|