cwah
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Post by cwah on Jan 20, 2019 3:29:50 GMT
I was thinking to get some loan on it but I believe its definitely overpriced and is likely to sell around £500k if put in auction. Just to give some context, a 2 bed flat of similar size and concierge just a street away is selling for £400k www.rightmove.co.uk/s6p/59438466I see too much risk of capital loss and including the various administration fee i easily see loss ranging around 20-30%... Beware guys.. i'll skip this one as I see too much risk on it. I'd have bought some if valuation were based on a £500k fire sale, which would brought the loan to £375k at 75% ltv |
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benaj
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Post by benaj on Jan 20, 2019 7:19:54 GMT
TBH, if the borrower is trying to refinance with a BTL mortgage, the biggest hurdle is letting @ 26k p.a for a 2 bed apartment. Sharing cost for 2 people is over £1k per person per month, there are tons of better value properties to rent near Canary wharf. As long as the borrower finds the tenants quickly even @ lower rent, the borrower has a better chance refinance with a BTL mortgage. Letting agents tend to give high valuation based on comparable without studying demand and supply. They would rather have tons of landlords letting out properties @ high rent rather than limited supply of properties, since they have absolutely no liabilities listing more properties. I think the possibility to refinance this FS loan with another bank is the deciding factor. Location wise, it is very good. 26 Mins to Canary Wharf, 37 mins to London City Airport, 20mins to London st Pancras, 15 Mins to Shoreditch, 14 mins to Barbican, 13 Mins to London Victoria, 8 mins to Bank station. I suppose the apartment itself is "quiet" enough on the 6th floor based on Lendlease quality residential developments. |
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adrian77
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Post by adrian77 on Jan 20, 2019 14:55:00 GMT
bit puzzled as to why the borrower needs to go to FS at 20% or whatever than a bank
The service charge starts at just under £3K pa for year 1 - wonder if this go up once the development is sold?
I think the stamp duty will be 8% (BLT) so that is a quick £56K if is bought for £700K
And what happens if JC gets in ref rent controls - Mayor Kahn is already talking about this
Interesting one to follow...
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pip
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Post by pip on Jan 20, 2019 15:26:03 GMT
Isn’t this just a case of risk vs reward.
Good scenario - after 6 months you get your money back plus about 6% interest for the half year.
Bad scenario - the loan is given and the security on the flat wasn’t filed, there are 3 other creditors ahead of you anyway and the borrower has stopped answering messages. You lose the lot.
With fundingecure i am not sure what is more likely. One get you 6% one loses you 100%. I won’t be investing.
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kielbasa
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Post by kielbasa on Jan 20, 2019 15:29:39 GMT
Isn’t this just a case of risk vs reward. Good scenario - after 6 months you get your money back plus about 6% interest for the half year. Bad scenario - the loan is given and the security on the flat wasn’t filed, there are 3 other creditors ahead of you anyway and the borrower has stopped answering messages. You lose the lot. With fundingecure i am not sure what is more likely. One get you 6% one loses you 100%. I won’t be investing. The problem with FS seems to be the plentiful "black swans" which many investors hadn't factored in.
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cwah
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Post by cwah on Jan 20, 2019 17:14:15 GMT
Isn’t this just a case of risk vs reward. Good scenario - after 6 months you get your money back plus about 6% interest for the half year. Bad scenario - the loan is given and the security on the flat wasn’t filed, there are 3 other creditors ahead of you anyway and the borrower has stopped answering messages. You lose the lot. With fundingecure i am not sure what is more likely. One get you 6% one loses you 100%. I won’t be investing. You have more chance to recover your ££ if it comes from FS negligence (for which you can make court claim) vs if the borrower can't pay back his loan. This one may sell under the loan value and rent won't cover the interest.
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adrian77
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Post by adrian77 on Jan 20, 2019 17:58:32 GMT
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Post by df on Jan 20, 2019 18:55:37 GMT
Only 7% filled so far. Doesn't look popular. I'd be very surprised if it ever crosses available/activation border unless revised rate or/and bonuses for BH's. Some time ago I would risk for short term investment, it worked fine with some MT, Abl and FS pulled loans. This loan looks like one of those opportunities to cash on platforms being overconfident, but I don't want to do this anymore - too much trouble for too little benefit.
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rookey123
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Post by rookey123 on Jan 21, 2019 11:11:37 GMT
Far too many new builds in this area. I would avoid.
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Post by mrclondon on Jan 21, 2019 15:34:42 GMT
Bonuses added, and fully underwritten (a first outing for the new green bar graph I think ).
fundingsecure, it would be helpful to know how the purchase price is broken down into deposit (already paid) completion funds and stamp duty so we can get a feel for the amount of new equity the borrower is introducing now (as opposed to when he paid the deposit).
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r00lish67
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Post by r00lish67 on Jan 21, 2019 16:09:18 GMT
Bonuses added, and fully underwritten (a first outing for the new green bar graph I think ).
I think we have our first non-6 months loan in the pipeline too - Stafford, 12 months. Biggie, £1.4m, might need that extra 6 months just to fill 
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cwah
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Post by cwah on Jan 21, 2019 16:28:47 GMT
What does this underwritten thing means??
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adrian77
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Post by adrian77 on Jan 21, 2019 16:41:31 GMT
very good question - I asked FS the same question - basically it ensures the loan offering will fill...any comments?
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dApps
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Post by dApps on Jan 21, 2019 16:44:14 GMT
What does this underwritten thing means?? From the loan info: "What does this mean? We have an individual or company that has agreed to cover any potential shortfall in the funding for this loan, up to the amount specified. The amount that has been underwritten is still available, as it will automatically be reduced to make way for any further investments." So, the Underwriter(s) are not additional guarantors to lenders in any respect from a repayment perspective, but they are a guarantee to the borrower that the loan will fill and the loan money sent. Personally, I'll let the Underwriter(s) earn their minimum 15% and allow them to take the risk.
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rs
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Post by rs on Jan 21, 2019 17:04:40 GMT
What does this underwritten thing means?? From the loan info: "What does this mean? We have an individual or company that has agreed to cover any potential shortfall in the funding for this loan, up to the amount specified. The amount that has been underwritten is still available, as it will automatically be reduced to make way for any further investments." So, the Underwriter(s) are not additional guarantors to lenders in any respect from a repayment perspective, but they are a guarantee to the borrower that the loan will fill and the loan money sent. Personally, I'll let the Underwriter(s) earn their minimum 15% and allow them to take the risk.
Seems like FS provided more information to underwriter than us lenders!
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