rogerthat
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Post by rogerthat on Apr 18, 2018 11:59:49 GMT
3rd tranche 4499066504
£44K @ 12% ..LTV 65%
3pm 18/04/18
Just wondered why they didn't include a photo of the double frontage from the erm...front..yet did so at the back ?
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adrian77
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Post by adrian77 on Apr 18, 2018 12:34:22 GMT
I think the reason being is that the front photo we are shown is for no 3 and no 1 is behind this house -see VR Well this will make accessing the house for renovation a breeze I don't think. Due to all these problematic FS property loans I see "second charge" and I reach for my smutty stick...granted its a very good area but I am not risking it.
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lobster
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Post by lobster on Apr 18, 2018 13:00:55 GMT
I think the reason being is that the front photo we are shown is for no 3 and no 1 is behind this house -see VR Well this will make accessing the house for renovation a breeze I don't think. Due to all these problematic FS property loans I see "second charge" and I reach for my smutty stick...granted its a very good area but I am not risking it. A first charge is obviously preferable to a second charge because in a default situation, the first charge must be paid off first. However, apart from this, may I ask whether there are there any other reasons to avoid a second charge ? Thanks
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r00lish67
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Post by r00lish67 on Apr 18, 2018 13:12:45 GMT
I think the reason being is that the front photo we are shown is for no 3 and no 1 is behind this house -see VR Well this will make accessing the house for renovation a breeze I don't think. Due to all these problematic FS property loans I see "second charge" and I reach for my smutty stick...granted its a very good area but I am not risking it. A first charge is obviously preferable to a second charge because in a default situation, the first charge must be paid off first. However, apart from this, may I ask whether there are there any other reasons to avoid a second charge ? Thanks The other very much related point is that it's typically the first chargeholder who will dispose of the asset. They have no financial incentive to try and cover the second charge, and so if a property is sold cheap and quick at auction for example, they will shrug their shoulders and accept it providing it covers their first charge.
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adrian77
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Post by adrian77 on Apr 18, 2018 14:10:11 GMT
Exactly - also what worries me with second charges is that should the developer run over his financial and or time budget allied with the vague possibility that the valuation is optimistic
the property ends up as being sold as a distressed item. By the time the legal and other rip-off fees are settled the second charge can easily turn to dust. Granted it can be quicker for a borrower to get a second chage rather than extend his first charge but to me I always worry that they are taken as the first lender won't extend.
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michaelc
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Post by michaelc on Apr 18, 2018 18:12:13 GMT
I have a question about 2nd charges. Can the 2nd charge holder force a sale without the consent of the 1st charge holder? Perhaps related, does the 2nd charge lender always need the consent of the 1st charge to add the 2nd charge? For a residential mortgage would permission normally be granted and why/why-not?
Sorry that's three questions there all a little off topic but would be great if someone who knows the answer could respond?
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adrian77
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Post by adrian77 on Apr 18, 2018 20:31:16 GMT
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rogerthat
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Post by rogerthat on Aug 21, 2018 19:32:04 GMT
As there was a supplemental loan part filled on the platform, ive waited till its subscribed so as not to prejudice it in any way. However, earlier updates were posted on some but not all previous tranches, relating to refinancing but different wording used for different tranches:-
e.g T3 ' The works are continuing on the site and the client is in the process of arranging refinance to repay the loan' (another P2P ?)
T1 'The works are continuing on the property and the client has requested this tranche be renewed on payment of interest. We are currently assessing this request' As the earliest tranche has only been live for 146 days could someone suggest what the reason could be because as far as I can see FS are still using the original GDV..thanks
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Post by dan1 on Sept 7, 2018 20:33:44 GMT
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adrian77
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Post by adrian77 on Sept 8, 2018 13:58:50 GMT
brilliant DD - just love this forum!
Not sure how this affects the FS charge - i.e. just what are they protecting ?
Could this be the first charge holders making sure they get 100% first dibs if this one defaults?
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Post by dan1 on Sept 8, 2018 14:50:22 GMT
brilliant DD - just love this forum! Not sure how this affects the FS charge - i.e. just what are they protecting ? Could this be the first charge holders making sure they get 100% first dibs if this one defaults? I assume it's evidence of the refinance progressing. If the new lenders minimum loan size is £1m then I guess it's a refinance of both 1st charge and the FS 2nd charge (of which the supplementary loan ranks lower priority than the development loan). If you're willing to stump up £3 to get the LR record then you can tell me when the borrower took ownership. Most new lenders require 6 months from registration before they will consider refinancing - CML rules and probably why the borrower had to go to the likes of FS to secure development finance at rates of 20%+
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adrian77
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Post by adrian77 on Sept 8, 2018 15:49:03 GMT
very helpful - thanks a lot - £1m smackers is quite a morgtage and you don't want to be in that position with a problematic tenant! That said I guess the rate will be a lot lower than FS ? This would buy a small street in Burnley - will think about the £3 LR charge
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Post by dan1 on Sept 8, 2018 17:54:30 GMT
very helpful - thanks a lot - £1m smackers is quite a morgtage and you don't want to be in that position with a problematic tenant! That said I guess the rate will be a lot lower than FS ? This would buy a small street in Burnley - will think about the £3 LR charge Take a look at the new lenders snazzy website (link in DD Central) for finance charges. Residential up to 65% LTV - 0.8% pm + 2% arrangement fee + up to 2% commission. Refurbs up to 65% LTV - 0.9% pm. Loans totaling £1.235m, at 0.8% pm is about £9k pm so I guess you'd be looking at £10k+ pm rental. Let's just hope the borrower of the art loans isn't looking for a place to crash 
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adrian77
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Post by adrian77 on Sept 9, 2018 3:20:40 GMT
I wish FS would give us such meangingful information - done some research and it looks to me as if this owner is not going to get £10K per month in rental : £3K tops. Also the price of most 2 bed houses in this area is a lot less than I thought with them starting at a mere £600K!
£2.2m will buy a very nice Georgian mews house in a top area and I note a lot of houses in the area have been reduced in price - maybe this is the market being cautious over Brexit in case a lot of well-paid city jobs are lost (personally I can't see this).
I seem to recall a forum member stating he can borrow at base plus 2% - this is roughly what I can borrow at but for under 50% LTV. Maybe this new lender shares my concerns and this is reflected in the actual rates charged?
I am wondering if I was a bit hasty in buying on the SM but hopefully this refinancing will come through so we loan holders will do well.
I can see that buying into loans that are about to be refinanced can make a lot of sense but I guess you need to careful?
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Post by dan1 on Sept 9, 2018 9:09:44 GMT
I wish FS would give us such meangingful information - done some research and it looks to me as if this owner is not going to get £10K per month in rental : £3K tops. Also the price of most 2 bed houses in this area is a lot less than I thought with them starting at a mere £600K! £2.2m will buy a very nice Georgian mews house in a top area and I note a lot of houses in the area have been reduced in price - maybe this is the market being cautious over Brexit in case a lot of well-paid city jobs are lost (personally I can't see this). I seem to recall a forum member stating he can borrow at base plus 2% - this is roughly what I can borrow at but for under 50% LTV. Maybe this new lender shares my concerns and this is reflected in the actual rates charged? I am wondering if I was a bit hasty in buying on the SM but hopefully this refinancing will come through so we loan holders will do well. I can see that buying into loans that are about to be refinanced can make a lot of sense but I guess you need to careful? The extension has added another bedroom & bathroom. £3k pm rental equates to a gross yield of 1.6% if the valuation of £2.2m is accurate. I'd guess the borrower is keen to sell to be able to fund the next development.
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