GeorgeT
Member of DD Central
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Post by GeorgeT on May 22, 2017 19:37:03 GMT
13% is back
Check your emails fellow investors and celebrate.
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Post by lusitania on May 22, 2017 19:40:41 GMT
So this is the one 'too big'... well, it's a Moneything afterall! I can still 'remember' not that long ago how hard it was to come across a new loan from MT... Now, well... PM and SM at full steam! Congrats!
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trevor
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Post by trevor on May 22, 2017 21:25:06 GMT
Stolen from under the nose of FS. There may be trouble ahead ............
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fp
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Post by fp on May 22, 2017 21:43:21 GMT
So this is the one 'too big'... well, it's a Moneything afterall! I can still 'remember' not that long ago how hard it was to come across a new loan from MT... Now, well... PM and SM at full steam! Congrats! This is a different one, the one mentioned previously was 3.3m from memory
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treeman
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Post by treeman on May 22, 2017 21:44:50 GMT
So this is the one 'too big'... well, it's a Moneything afterall! I don't think it is ..... quoting Ed from the other thread (my bolds) : " we have just been approached to look at a c. 55% LTV cleared land with residential planning close to Leeds city centre. The loan looks strong with a good exit with someone lined up to undertake the development finance (GDV >£50m). The bridging opportunity is however £3.3m." This is Buildings, Liverpool, £2.5m, 62.5% LTV..... Plenty in the pipe !
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theshape
Member of DD Central
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Post by theshape on May 22, 2017 21:56:26 GMT
Still sitting on the FS available loans page, 'Now Delayed'.
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am
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Post by am on May 22, 2017 22:43:49 GMT
I understand full planning permission with conditions to have been granted. But I haven't managed to find the decision notice (lots of other documents on the Liverpool planning portal).
I'd also like to understand the relationships between the various companies involved.
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ilmoro
Member of DD Central
'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 May 22, 2017 23:30:29 GMT
I understand full planning permission with conditions to have been granted. But I haven't managed to find the decision notice (lots of other documents on the Liverpool planning portal). I'd also like to understand the relationships between the various companies involved. Its there in amongst all the word docs (9th one down)
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Post by lusitania on May 23, 2017 4:29:32 GMT
fp & treeman after such a period of drought, I happily stand corrected!
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zoll
Posts: 52
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Post by zoll on May 23, 2017 6:35:45 GMT
Has anybody managed to understand if the 4m evaluation of the property is for the land as vacant + planning permission, or does it include the existing building ? If it includes the existing building , then the 62.5% LTV is all good on the day the loan is made but as the building is slated for demolition the true LTV to look at is the value once it is demolished. I haven't had a chance to dig very deep into the evaluation yet - but from the looks of things this is the case. and in reality we are probably looking at a much higher LTV than presented of around 80% plus.
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registerme
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Post by registerme on May 23, 2017 6:55:04 GMT
Morning MoneyThing, what's the story behind it moving from FS to MT?
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SteveT
Member of DD Central
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Post by SteveT on May 23, 2017 7:02:17 GMT
Has anybody managed to understand if the 4m evaluation of the property is for the land as vacant + planning permission, or does it include the existing building ? If it includes the existing building , then the 62.5% LTV is all good on the day the loan is made but as the building is slated for demolition the true LTV to look at is the value once it is demolished. I haven't had a chance to dig very deep into the evaluation yet - but from the looks of things this is the case. and in reality we are probably looking at a much higher LTV than presented of around 80% plus. The £4m valuation has been calculated as the residual land value of the planned development, once construction / sales / finance costs and 20% developer profit are deducted from the £38m GDV (not as a valuation of the existing building). Presumably the demolition costs are included within the overall construction budget of £21m so, in theory at least, if the building were to be demolished within the term of MT's loan (ie. before the development finance has been raised) that ought to increase the residual land value, since an incoming developer would need to spend less to complete the project. Of course, given the size of the figures that are being netted off against each other, reality could be somewhat different. MoneyThing , is there any documented agreement as to whether the existing building may be demolished within the 12 months term of the MT bridging loan? Also, is it expected that the development finance (once raised) will repay the MT loan and take over the 1st charge?
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SteveT
Member of DD Central
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Post by SteveT on May 23, 2017 7:04:59 GMT
Morning MoneyThing , what's the story behind it moving from FS to MT? The FS loan was to be a smaller 2nd charge of £1.2m, behind another lender's 1st charge loan of £1.5m (same £4m valuation). My guess is that the developer was persuaded it was better to take out the 1st charge holder and refinance the whole bridge. Or, given the FS description, perhaps the £1.5m loan hasn't yet completed either and it is cheaper to combine the two: " The client is using the funds to purchase the property and will then refinance onto longer term development finance to fund the works. The first charge borrowing is for £1,500,000 which gives an overall LTV of 67.5%"
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Post by MoneyThing on May 23, 2017 8:29:40 GMT
Morning MoneyThing , what's the story behind it moving from FS to MT? Morning, We understand that this was a different borrower looking to raise funds to purchase the site. Regards, Ed
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Post by MoneyThing on May 23, 2017 8:32:59 GMT
Has anybody managed to understand if the 4m evaluation of the property is for the land as vacant + planning permission, or does it include the existing building ? If it includes the existing building , then the 62.5% LTV is all good on the day the loan is made but as the building is slated for demolition the true LTV to look at is the value once it is demolished. I haven't had a chance to dig very deep into the evaluation yet - but from the looks of things this is the case. and in reality we are probably looking at a much higher LTV than presented of around 80% plus. The £4m valuation has been calculated as the residual land value of the planned development, once construction / sales / finance costs and 20% developer profit are deducted from the £38m GDV (not as a valuation of the existing building). Presumably the demolition costs are included within the overall construction budget of £21m so, in theory at least, if the building were to be demolished within the term of MT's loan (ie. before the development finance has been raised) that ought to increase the residual land value, since an incoming developer would need to spend less to complete the project. Of course, given the size of the figures that are being netted off against each other, reality could be somewhat different. MoneyThing , is there any documented agreement as to whether the existing building may be demolished within the 12 months term of the MT bridging loan? Also, is it expected that the development finance (once raised) will repay the MT loan and take over the 1st charge? Morning, The £4m valuation is based on the residual land value for the planned development. As such, the valuation takes into account the costs associated with demolition of the existing buildings. The demolition works have been scheduled to begin in July. As such, the value of the site increases as demolition works are underway. The borrower will be using their own funds to start the build in September. Once development finance is obtained, they will look to raise the funds part way into the build which at the point will refinance the MT loan in its entirety. Hope that makes sense. Regards, Ed
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