elliotn
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Post by elliotn on Oct 15, 2018 15:59:33 GMT
I’m surprised at the take up of this loan. With Wigan yet to repay, it’s got a decent chance of filling. Unless I'm missing something, it looks a pretty decent loan so why would it not fill? Of course, I could be missing something.... You need to have a look at snowmobile ‘s comprehensive post on DDC.
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dh1
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Post by dh1 on Oct 15, 2018 19:25:18 GMT
Seems a bit odd, this one. Only 25% take up after a few days, even with 6 months interest payment up front. Does it have a future?
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Post by eascogo on Oct 15, 2018 20:33:25 GMT
Seems a bit odd, this one. Only 25% take up after a few days, even with 6 months interest payment up front. Does it have a future? The upfront interest is unusual but so is the inability to sell for 6 months. Together these conditions may not be such a great draw. Further significant loan repayments are likely to have greater weight as mentioned in my earlier post.
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Post by Proptechfish on Oct 21, 2018 15:15:52 GMT
This seems to have reached saturation, is this going to be second in a row to be pulled ? If MT pays interest for duration like last time it becomes an expensive habit.
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johni
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Post by johni on Oct 21, 2018 15:44:24 GMT
I think a number of people are waiting for Wigan to repay to release funds for this loan.
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cedarcourtcapital
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Listening is not the same as understanding
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Post by cedarcourtcapital on Oct 21, 2018 16:09:32 GMT
I think a number of people are waiting for Wigan to repay to release funds for this loan. Possibly or lenders have witnessed how horribly property loans, with marginal security when called upon, across multiple platforms, can go wrong, and do not think the reward is worth the risk. I am surprised this loan was even floated given the platforms supposed move away from property loans. I believe with the expected repayment of multiple loans/default payments meant something big had to be put up to try to stop a massive relocation of lender monies.
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cwah
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Post by cwah on Oct 21, 2018 18:30:48 GMT
I think a number of people are waiting for Wigan to repay to release funds for this loan. I also have a chunk of ££ waiting for Paisley to be repaid to invest in... So like many investors, the defaulted loans are preventing us to fill up the new ones!
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Post by Proptechfish on Oct 21, 2018 21:17:14 GMT
I think a number of people are waiting for Wigan to repay to release funds for this loan. I can't see £1 mil being reinvested if that's the case
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elliotn
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Post by elliotn on Oct 22, 2018 7:14:12 GMT
I think a number of people are waiting for Wigan to repay to release funds for this loan. Possibly or lenders have witnessed how horribly property loans, with marginal security when called upon, across multiple platforms, can go wrong, and do not think the reward is worth the risk. I am surprised this loan was even floated given the platforms supposed move away from property loans. I believe with the expected repayment of multiple loans/default payments meant something big had to be put up to try to stop a massive relocation of lender monies. MT were exiting property development loans for the time being but were still looking at bridges (whilst continuing to look at other assets). The last two bridges at c1.5M were either too high in current market or not attractive enough (one a PP play, another a ‘close to finished’ leasehold development, perhaps exits for both were not seen as concrete enough if they didn’t go to plan). MT are also looking at some smaller property deals ie 139 & 141 at a more digestible <250k.
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m2btj
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Post by m2btj on Oct 22, 2018 8:01:13 GMT
Possibly or lenders have witnessed how horribly property loans, with marginal security when called upon, across multiple platforms, can go wrong, and do not think the reward is worth the risk. I am surprised this loan was even floated given the platforms supposed move away from property loans. I believe with the expected repayment of multiple loans/default payments meant something big had to be put up to try to stop a massive relocation of lender monies. MT were exiting property development loans for the time being but were still looking at bridges (whilst continuing to look at other assets). The last two bridges at c1.5M were either too high in current market or not attractive enough (one a PP play, another a ‘close to finished’ leasehold development, perhaps exits for both were not seen as concrete enough if they didn’t go to plan). MT are also looking at some smaller property deals ie 139 & 141 at a more digestible <250k. These big deals in the current market are not for me. I'd like to see MT target some of the loans that Kuflink have been successful with. Many are under £250k & reasonably straightforward deals. However, there is always a direct correlation between risk & reward & Kuflink offerings come with much lower rates at around 7%.
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dh1
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Post by dh1 on Oct 22, 2018 21:18:48 GMT
This all seems to be heading the same way. I doubt big loans will fill on MT - just look at the history of this loan offer and the previous big one. The differentiator on this one (6m upfront interest) clearly isn't enough to either encourage lenders to take the risk and/or (perhaps) to stir the owners of the £1.8m sitting in the client account into action. Assuming that at least some of that money is still there means that MT has the opportunity to sell some sort of loan offering(s) but it will have to be very attractive indeed. Or cars. Or very conservatively valued bling. NOT more boats!
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Post by Badly Drawn Stickman on Oct 22, 2018 21:43:20 GMT
This all seems to be heading the same way. I doubt big loans will fill on MT - just look at the history of this loan offer and the previous big one. The differentiator on this one (6m upfront interest) clearly isn't enough to either encourage lenders to take the risk and/or (perhaps) to stir the owners of the £1.8m sitting in the client account into action. Assuming that at least some of that money is still there means that MT has the opportunity to sell some sort of loan offering(s) but it will have to be very attractive indeed. Or cars. Or very conservatively valued bling. NOT more boats! One would assume that with Wigan due to repay (all being well) in the next few days, they will wait and see how much of that gets put into this loan. If that amount is disappointing presumably this loan will get pulled. The sensible next step would be for Moneything to review their terms and conditions to see if the concerns off those who have not agreed to them could be accommodated. Then to be a little more selective in the loan offerings to give 'the people that they want'. Despite recent events Moneything still retains a high degree of platform affection (not by all, but in general terms). The ball would seem to be in their court, hopefully they can get it back into play. And yes obviously progress on the defaults would be welcome all round I suspect, personally I am happy to give them space and time to get results.
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Post by mrclondon on Oct 22, 2018 22:39:39 GMT
Leasehold building with only 33 years left to run. Repayment strategy in a year via a commercial mortgage. Nobody will touch it with only 32 years left. I'm out. Can I get a mortgage on a leasehold property? Only if the lease remaining is more than 70 years, for most lenders, otherwise you will need additional security.
What can be offered as security? Generally lenders take the property you are buying as the only security for the loan, which is typically 70% of the value of the property, and ask for a cash deposit for the balance of the purchase price.source: www.moneysupermarket.com/business-finance/commercial-mortgages/The building isn’t owned so can’t have a mortgage secured on it and the lease will only have 32 years left. If this has any chance of filling, there must be a credible repayment strategy. When refinance becomes a problem, the next one is going to be recovering the capital from a leasehold business. MoneyThing - it would be helpful if you could comment on this, as at face value the contention that a commercial mortgage is an exit strategy option seems rather tenuous. Aldermore would perhaps be an obvious source for a commerical mortgage, but they require 40 years remaining on the lease at the end of the mortgage term.
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Post by MoneyThing on Oct 23, 2018 17:32:10 GMT
Can I get a mortgage on a leasehold property? Only if the lease remaining is more than 70 years, for most lenders, otherwise you will need additional security.
What can be offered as security? Generally lenders take the property you are buying as the only security for the loan, which is typically 70% of the value of the property, and ask for a cash deposit for the balance of the purchase price.source: www.moneysupermarket.com/business-finance/commercial-mortgages/The building isn’t owned so can’t have a mortgage secured on it and the lease will only have 32 years left. If this has any chance of filling, there must be a credible repayment strategy. When refinance becomes a problem, the next one is going to be recovering the capital from a leasehold business. MoneyThing - it would be helpful if you could comment on this, as at face value the contention that a commercial mortgage is an exit strategy option seems rather tenuous. Aldermore would perhaps be an obvious source for a commerical mortgage, but they require 40 years remaining on the lease at the end of the mortgage term. Will do - will post a comment on the platform tomorrow. Regards, Ed.
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james21
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Post by james21 on Oct 23, 2018 18:19:39 GMT
Far too ambitions a loan for the likes of MT, it wont be filled, and the wont call underwriters to make up the difference
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