|
|
Post by badboyyardy on Sept 26, 2017 13:38:07 GMT
So again logic confuses me - the borrower unable to get a normal historically all time low % mortgage - borrows from FS at say conservative guess of 20%
So new house = lose 10-20% off list price once on secondary market
Can anyone else see this ending badly? Still 450k went in under 5 minutes....
|
|
mullet
Member of DD Central
Posts: 126 
Likes: 137
|
Post by mullet on Sept 26, 2017 14:10:09 GMT
Can someone explain to a newbie what difference it makes when the loan is to a company.
Does this make it make our ability to take the security any weaker? They feel the need to mention it is backed by a PG (which is worthless in my view), so I'm assuming there must be some difference.
If the company owes money to other people too if/when they go under (eg HMRC) do they jump the queue and get proceeds from property first?
|
|
|
|
Post by diamon89 on Sept 27, 2017 8:31:03 GMT
My understanding:
Company vs personal: If a company goes bust, its assets will be sold to pay off creditors ("liquidation"). If there isn't enough money to go around, creditors only get back their share of what's left. Then the company is dissolved and there's no way of getting any more money. With a loan to a person, on the other hand, creditors can continue to chase that person (e.g. if they earn more money later) unless they actually go bankrupt. So a PG is useful, it means that creditors can still go after the individual even if the company disappears.
Secured assets: Secured creditors have priority over other creditors. So the administrator would sell the secured asset first, pay off the creditors secured on that asset with the proceeds of that asset sale, and only then start paying off other creditors.
(I am not a lawyer, seek professional advice, etc.)
|
|
|
|
Post by mrclondon on Sept 27, 2017 13:13:59 GMT
There is one other marginal benefit of a corporate borrower assuming they are UK registered, in so far as a few weeks after drawdown of the loan the charge against the asset should be detectable via a google search on the companies house website. This allows lenders to conduct additional due dilligence as to the background of the borrower, and perhaps identify other loans from FS or other p2p platforms. Any negative perception so derived can then inform a decision to offload on the SM rather than retain.
|
|
|
|
Post by badboyyardy on Dec 10, 2017 0:14:47 GMT
There is one other marginal benefit of a corporate borrower assuming they are UK registered, in so far as a few weeks after drawdown of the loan the charge against the asset should be detectable via a google search on the companies house website. This allows lenders to conduct additional due dilligence as to the background of the borrower, and perhaps identify other loans from FS or other p2p platforms. Any negative perception so derived can then inform a decision to offload on the SM rather than retain. Can you expand on how to do this? Tried a seach on company house beta but too many hits Thanks in advance
|
|
|
|
Post by mrclondon on Dec 10, 2017 0:23:10 GMT
There is one other marginal benefit of a corporate borrower assuming they are UK registered, in so far as a few weeks after drawdown of the loan the charge against the asset should be detectable via a google search on the companies house website. This allows lenders to conduct additional due dilligence as to the background of the borrower, and perhaps identify other loans from FS or other p2p platforms. Any negative perception so derived can then inform a decision to offload on the SM rather than retain. Can you expand on how to do this? Tried a seach on company house beta but too many hits Thanks in advance Google / Bing Search Syntax of Companies House to locate charges (same syntax for both search engines, result sets can vary) +{platform name - of the security trustee} charge {asset's town} site:companieshouse.gov.uk deducing the best phrases to replace the { } can be a frustrating exercise. Here are some I use (note FS can have a space between the two words, or not) +"fundingsecure" charge {town} site:companieshouse.gov.uk +Moneything charge {town} site:companieshouse.gov.uk +"Collateral Security Trustee" charge {town} site:companieshouse.gov.uk +"saving stream" charge {town} site:companieshouse.gov.uk
|
|
|
|
Post by badboyyardy on Dec 11, 2017 12:00:52 GMT
Thanks for this nothing showing for this loan but tested with few others and few hits showing up. Very useful tool for DD
|
|
|
|
Post by mrclondon on Dec 11, 2017 12:44:14 GMT
Thanks for this nothing showing for this loan Which is as expected - the loan was originally going to be to a company, but FS posted an update to the loan saying it was infact going to be in the personal name of the borrrower to save on stamp duty costs.
|
|
|
|
Post by mrclondon on Dec 11, 2017 12:51:34 GMT
One interesting fact that no-one has commented on concerning this loan is the VR states it is freehold, but land registry records show it is actually leasehold with a freehold shared with one other property on the development.
Also worth noting that this appears to be one of the first few houses finished on a development that received planning permission in 2014 for over 200 houses.
|
|
