|
|
Post by badboyyardy on Dec 6, 2017 11:46:35 GMT
So this borrower is just linked to the S Green property as well - any others we know about.....
Which loan takes precedence in case of default....
|
|
ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,168 
Likes: 4,859
|
Post by ozboy on Dec 6, 2017 11:49:43 GMT
"........................ I would not touch it with a barge-pole."Nor, as we say in Oz, with a s**tty stick!  |
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Dec 6, 2017 15:28:33 GMT
Update:
We had previously listed this as the first tranche of a larger facility loan. After discussion with the borrower, we have agreed to manage any subsequent drawdown as a separate facility, ranking behind this loan. As previously stated this facility will be a maximum of £325,000 against a GDV of £3,200,000. It will be finalised once a schedule of works is in place. Releases against the facility will be subject to a monitoring surveyor's report and an overall maximum LTV of 65%.
The effect of this change will be to gradually reduce the LTV on this loan as the work progresses and the property increases in value.
|
|
huxs
Member of DD Central
Posts: 300 
Likes: 218
|
Post by huxs on Dec 6, 2017 15:35:50 GMT
Update: We had previously listed this as the first tranche of a larger facility loan. After discussion with the borrower, we have agreed to manage any subsequent drawdown as a separate facility, ranking behind this loan. As previously stated this facility will be a maximum of £325,000 against a GDV of £3,200,000. It will be finalised once a schedule of works is in place. Releases against the facility will be subject to a monitoring surveyor's report and an overall maximum LTV of 65%. The effect of this change will be to gradually reduce the LTV on this loan as the work progresses and the property increases in value. Well I am liking the new responsive FS two deal's today that I would have avoided that have had positive updates in relationship to DD performed here and now both become more palatable to me. Well done fundingsecure
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Dec 6, 2017 18:06:12 GMT
Update: We had previously listed this as the first tranche of a larger facility loan. After discussion with the borrower, we have agreed to manage any subsequent drawdown as a separate facility, ranking behind this loan. As previously stated this facility will be a maximum of £325,000 against a GDV of £3,200,000. It will be finalised once a schedule of works is in place. Releases against the facility will be subject to a monitoring surveyor's report and an overall maximum LTV of 65%. The effect of this change will be to gradually reduce the LTV on this loan as the work progresses and the property increases in value. Well I am liking the new responsive FS two deal's today that I would have avoided that have had positive updates in relationship to DD performed here and now both become more palatable to me. Well done fundingsecure I still won't be touching either!
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Dec 6, 2017 19:12:05 GMT
me neither!
Had a bit more of a think about this one. Do I think £3.2m is achievable - yes but only extensive refurbishment and renovation and no way within 6 months.
This chap is already borrowing £2.39m over the 2 properties, granted they are separate entities, but he/she only has the one wallet!
Maybe I missed it but I can't see any reference as to how this house was paid for
so how much does this chap actually owe on this house.
Thus is this chap borrows £2m and the renovation plus selling takes one year (optimistic) then that is a quick £2.4m if we take interest at 20%. How much will the renovation cost - I would say very slim chace of under £350K and possibly double that depending on the state of the building. Thus I don't see how this chap (or chappesse) is going to re-pay these two original tranches (one for each house) after 6 months without another loan and how much of that would be lost in the original interest of £450K+?(for the 2 houses)
Well that does not leave much wiggle room does it.
As I said I don't develop in London so would appreciate any comment from a developer more qualified than I am.
Also I have read the foreign interest is London is down at the moment - it could get better if sterling falls due to a Brexit bust-up or it could fall if sterling rises
if Brexit gets back on track...I don't know but this development seems like Russian Roulette to me.
This is the sort of property Alan "call me Lord or I will sue you" Sugar invests in - would he be borrowing money at FS rates- answers on a digital postcard.
However to quote Ozboy I will not be touching this one with the smutty stick until we have at least some sort of accurate cost accounts and income proof of the borrower.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Dec 7, 2017 13:48:54 GMT
Maybe I missed it but I can't see any reference as to how this house was paid for so how much does this chap actually owe on this house. Since FS are taking a first charge, doesn't that mean there are no other debts secured on the property? There's apparently an existing charge right now since the purpose of the loan is to "refinance existing borrowing" but that has to be cleared before FS could have their first charge. If the existing charge is smaller than the net proceeds of the FS loan to the borrower then they'd be extracting some of their tied-up capital in the process of the refinance, and that could provide some ot the funds needed to pay for the refurbishment. Whether this makes financial sense for the borrower depends on how much the refurbishment costs and how much value it adds to the property -- and also how long it takes to do the job and sell the property.
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Dec 7, 2017 15:45:37 GMT
I guess so but this chap may have racked up other debts e.g. credit cards
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Dec 11, 2017 14:31:40 GMT
+ She**ick Gre*n..8236944111 So..a borrower who's been less than honest..shock horror ...both cancelled..thanks to all those concerned..I did originally have an even spread on both, but got cold feet on S*le Pl*ce and had it removed.
|
|
|
|
Post by routlep on Dec 12, 2017 21:34:20 GMT
I’ll second that, this forum has made a difference😊
|
|
