registerme
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Post by registerme on Jul 29, 2017 16:52:16 GMT
I've not had a look at any details yet but it's interesting in light of this discussion.
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hazellend
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Post by hazellend on Jul 29, 2017 17:10:50 GMT
Looks like the have valued it on an RPI increase basis rather than the ridiculous "doubling".
Looks like a lowish risk loan.
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Post by sannytwist on Jul 29, 2017 17:29:49 GMT
low risk? the recent changes in regulations are focused on leasehold ground rents like these.
Any whiff of news remotely negative will send the SM crashing on this one.
Maybe its just me but 12% doesn't cut it. Better loans on SM to avoid unnessary risk l think
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theshape
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Post by theshape on Jul 29, 2017 17:51:37 GMT
Looks like the have valued it on an RPI increase basis rather than the ridiculous "doubling". Looks like a lowish risk loan. My immediate thought was 'How long has this been in the pipeline and have they taken account of the anticipated action on freeholds/ground rent'. Looks like they have so should be a good one.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jul 29, 2017 18:05:14 GMT
Reduces the value of the freehold, correctly. Brilliant. Hope they can ask the borrower to include a contractual level of fees for common leasehold changes. 2 property portfolio of multiple units. No indication given about what occupancy rate is nor if the buildings are to be refurbished. SophieThing?
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SteveT
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Post by SteveT on Jul 29, 2017 18:26:03 GMT
Looks like the have valued it on an RPI increase basis rather than the ridiculous "doubling". Looks like a lowish risk loan. My immediate thought was 'How long has this been in the pipeline and have they taken account of the anticipated action on freeholds/ground rent'. Looks like they have so should be a good one. Does anyone remember how long it WAS in the pipeline for? Or is it a late arrival?
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Post by MoneyThing on Jul 29, 2017 19:21:18 GMT
Evening,
I can confirm that ground rent is being paid on all 150 units (the units are not being refurbished).
I am afraid it was my error for the omission of this loan in the Pipeline as we first started looking at this loan on the 26th May.
Kind regards,
Ed
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elliotn
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Post by elliotn on Jul 30, 2017 5:04:17 GMT
MoneyThing , the drop in yield could be from 10.81% over the lifetime of the leases to an opening 2.71% to be pegged by RPI; even if the large scale comparables of 4-5% yield were achieved this reflects a more substantial drop than the 23% decrease in the valuation from the initial agreed sales prices of c1.6M. Will you confirm: - any documentary evidence to substantiate the valuers updated opining; - if your solicitors have yet seen the revised sales agreement; - if not, that you will inform investors of the new LTSV in an update as soon as you are aware of the revised sales agreement.
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m2btj
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Post by m2btj on Jul 30, 2017 10:08:23 GMT
low risk? the recent changes in regulations are focused on leasehold ground rents like these. Any whiff of news remotely negative will send the SM crashing on this one. Maybe its just me but 12% doesn't cut it. Better loans on SM to avoid unnessary risk l think This 6 months loan will have come to an end by the time a public consultation is carried out at any regulatory changes are made. The wheels of government grind very slowly indeed!
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oldgrumpy
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Post by oldgrumpy on Jul 30, 2017 10:21:31 GMT
low risk? the recent changes in regulations are focused on leasehold ground rents like these. Any whiff of news remotely negative will send the SM crashing on this one. Maybe its just me but 12% doesn't cut it. Better loans on SM to avoid unnessary risk l think This 6 months loan will have come to an end by the time a public consultation is carried out.... at any regulatory changes are made. The wheels of government grind very slowly indeed! ... assuming the borrower doesn't hedge his bets by renewing for a further period of time. I think lenders will be very cautious about participating in this particular loan.
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hazellend
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Post by hazellend on Jul 30, 2017 10:28:39 GMT
This 6 months loan will have come to an end by the time a public consultation is carried out.... at any regulatory changes are made. The wheels of government grind very slowly indeed! ... assuming the borrower doesn't hedge his bets by renewing for a further period of time. I think lenders will be very cautious about participating in this particular loan. I cautiously participate in all the loans I have put money into lol
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GeorgeT
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Post by GeorgeT on Jul 30, 2017 10:40:46 GMT
I think this is a bit of a beauty.
I'm up to my neck in the MT Boll' loan so I won't be adding to my pot on that one but this ground rent loan to a brand new MT borrower is an excellent opportunity for real diversification and of course the all-important 12%.
Ground rents have always been a fantastic investment and as safe as a rock hence the typical yield is only about 2%.
If some investors are concerned that the so called government has decided to hold a rushed review of new build houses being sold on a long leasehold basis then fear not because any changes that could result will not be retrospective. Besides it is a bit of a bonkers review because I am personally at present dealing with a house builder who is building a number of houses and has himself only got a long leasehold interest because the local authority he purchased the land from wished to themselves retain the freehold interest - so it would be an impossibility for my friend to sell his houses on anything but a long leasehold basis because you cannot sell a bigger interest then you own.
In addition valuation will always take into account the tenure and terms and conditions of any lease in place.
In any event it is not relevant to this exceptional new loan on MT and I will be waiting with fingers poised from 12 midday tomorrow.
And with the 12% AE loans repaying tomorrow, what an ideal day for two big 12% launches. These things don't happen by chance and what it shows me is that Ed and the Things work like well oiled machines and they are determined to give you immediate first class opportunities to re invest your money. This sort of dovetailing genius does not happen by chance.
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dovap
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Post by dovap on Jul 30, 2017 10:48:49 GMT
to think it seemed a bit iffy - well that was until it received the highly prized and widely regarded Mr T quality appraisal
gl punters
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seeingred
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Post by seeingred on Jul 30, 2017 11:02:24 GMT
" In addition valuation will always take into account the tenure and terms and conditions of any lease in place"
Just like all the valuations we have come to know and love. Totally reliable. Real beauties.
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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 Jul 30, 2017 11:49:54 GMT
In any event it is not relevant to this exceptional new loan on MT and I will be waiting with fingers poised from 12 midday tomorrow. Yes, totally irrelevant as can be seen by the fact the borrower has already reacted to it by moving to eliminate the contentious element of 'doubling' from the leases. Of course, its relevant because it introduces uncertainty into a market, particularly as its based on a consultation involving a key industry sector with considerable lobby power in a parliament where a few concerned MPs can shift government policy and a national media who have decided leasehold 'bad' ground rents 'bad' speculators in ground rents 'bad'. Sensible debate unlikely. Proabably less relevant to this loan than Bolli as the leases are already in place. I would expect Bolli may well have to pivot or fail fast and sell the properties as freehold if possible.
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