GeorgeT
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Post by GeorgeT on Nov 6, 2017 16:05:50 GMT
BL00074 - BL00077: Eco Village, Scotland Security Value: £2,225,000 Loan Amount: £1,100,000 (Split into 4 tranches of £275,000) % PA: 12% Loan to Value (LTV): 49.44% Loan Start Date: 06/11/2017 Term: 12 Month Bridging Loan (6 months interest paid in advance, further interest for the term payable in 6 months time), with an option for an extension (if it is appropriate to do so and the interest is paid ahead of the loan extension).
Purpose of Loan - To refinance and repay their existing lender, to purchase the land providing a new access point to the Eco Village and to assist with the construction costs of putting in the roadway to the Eco Village and obtain detailed planning permission.
Exit - The borrower plans to obtain detailed planning consent for the scheme. They will then seek development finance with a view to completing the development. On completion of the bridging loan and on receipt of detailed planning approval, costings and timeframes, COL will consider offering the development funding required via the platform. The exit will either be from a sale of the units or by re-finance.
Security- This is a £1,100,000 loan (broken into 4 parts of £275,000 all ranking equally) secured by a first charge, a debenture over the borrowing company and PGs from the directors. The loan security is the land for development of an Eco Village with planning in principle for residential, tourist, leisure, and commercial development with a valuation of £2,225,000 and a GDV of £8,900,000 on completion of proposed planning and development.
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star dust
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Post by star dust on Nov 6, 2017 16:12:59 GMT
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Post by Butch Cassidy on Nov 6, 2017 16:14:23 GMT
I believe this was PBL 127 later refinanced as PBL 162 over on LfSS; originally loaned £820k against a VR £1.76M as farm, buildings, wind turbine & land.
EDIT: x post with star dust
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SteveT
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Post by SteveT on Nov 6, 2017 16:18:44 GMT
Deja vu all over again.
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copacetic
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Post by copacetic on Nov 6, 2017 16:20:13 GMT
I'm reminded of a game of pass the parcel which becomes morbidly interesting to watch from a distance when you hear a faint ticking sound coming from the parcel.
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Post by Collateral Rep on Nov 6, 2017 16:30:20 GMT
Hi cooling_dude, The confirmation statement was overdue but was submitted to Companies House last week, therefore crossed with the strike off notice, which we expect to be taken down soon. Many thanks, Gordon
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star dust
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Post by star dust on Nov 6, 2017 16:41:34 GMT
Hi cooling_dude , The confirmation statement was overdue but was submitted to Companies House last week, therefore crossed with the strike off notice, which we expect to be taken down soon. Many thanks, Gordon The confirmation statements, which were due in June, are already listed and downloadable on companies house dated/lodged 2 November, the strike-off notice is dated tomorrow 7th November. There were also changes to the significant ownership of the company K****** D*********** Ltd lodged/dated 2 November.
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mrflush
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Post by mrflush on Nov 6, 2017 18:27:47 GMT
The confirmation statements, which were due in June, are already listed and downloadable on companies house dated/lodged 2 November, the strike-off notice is dated tomorrow 7th November. There were also changes to the significant ownership of the company K****** D*********** Ltd lodged/dated 2 November. In English?
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mrflush
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Post by mrflush on Nov 6, 2017 19:16:39 GMT
Thanks
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star dust
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Post by star dust on Nov 6, 2017 19:32:57 GMT
The confirmation statements, which were due in June, are already listed and downloadable on companies house dated/lodged 2 November, the strike-off notice is dated tomorrow 7th November. There were also changes to the significant ownership of the company K****** D*********** Ltd lodged/dated 2 November. In English? My point was that Lendy’s borrower (K****** D*********** Ltd) was late in submitting their ‘confirmation statement’ which is a legal requirement and should have been submitted to Companies House in June, but they had submitted it (belatedly) on the 2nd November. The motion to strike off the company had obviously crossed with this as it was dated 7th November. It is common, though not ideal, but had already been rectified, all these documents are readable/downloadable on the Companies House website.
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hazellend
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Post by hazellend on Nov 6, 2017 19:47:14 GMT
Like most P2P borrowers... and some platforms, this borrower is not very good at submitting his paperwork to CH on time Confirmation statements take 5 min and £13, so there is little excuse not to complete in time, but it is not uncommon - to get to the point where you get a notice from CH is ridiculous, but not serious. Especially as your accountant will do it for you, for £13! So literally zero effort required.
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GeorgeT
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Post by GeorgeT on Nov 6, 2017 21:33:08 GMT
COL is currently my favourite platform and I have more invested through COL than any other platform.
However I'm not keen on this loan and I'm not in it. I can't quite put my finger on it and offer any good reasons other than this feels a bit like a case of borrow money - then refinance to pay off lender - then refinance to pay off new lender -repeat, repeat .. and somewhere down the line the refinance options dry up with the inevitable outcome.
Also, I admit I'm a bit OCD with these things but I'm somebody who always tries hard to do everything on time, complies with deadlines and would worry if I had not. I have never owned a company and know little about company law and accounts rules (unlike some of the experts on here like CD who I thank for their contributions in this area) but I'm not over keen on anybody who misses deadlines for filing information/accounts. To me it smacks of somebody who pays little regard to formalities and rules. When I'm lending money thru P2P I'd like to lend it to somebody whose conduct shows they do have regard for formalities, i.e. I'm thinking will such a person be equally slack and remiss with their loan commitments to lenders.
Perhaps that is unfair and I am just naive in the ways of big business, but it's one of the things that shapes my impression about a borrower and a loan and influences my decision about whether to invest my money.
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stevio
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Post by stevio on Nov 7, 2017 10:05:02 GMT
collateral the Lendy loans spanned almost 1.5yrs - what, if anything, was done in that time and how can we be reassured this loan will not stagnate during the time CO hold the loan and ultimately when it needs to be repaid?
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Post by Collateral Rep on Nov 7, 2017 10:18:47 GMT
Hi stevio , The conversations we've had with the borrower is that they have been in negotiations with the planners and also the neighbouring land owner over the purchase of a strip of land which will allow an increase in the number of dwellings in the Eco Village, which have all now been agreed and expect to complete prior to drawdown of this loan. They now have the 3 house types (provided by a very reputable developer) for the site and once detailed planning is approved for these, the development will start immediately. Many thanks, Gordon
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withnell
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Post by withnell on Nov 7, 2017 10:59:45 GMT
I'm going to buck the trend - I like this loan. Decent LTV and ongoing development on the property
Yes they're refinanced a few times, but at each point the valuation increase is backed up by a material change in the property, eg more eco lodges etc, and also they are refinancing before the loan goes overdue, which is unusual for most 12% P2P these days
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