nick
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Post by nick on Apr 3, 2021 11:37:26 GMT
I don't understand why a borrower would settle early if they have to pay 12 months interest anyway. If re-financing then they have 2 lots of interest for 12 months, unless the Ablrate fees are the tipping point for the borrower to be better off. I expect some sort of deal to be struck here. I suspect they have secured long-term financing at a rate substantially lower. If this is the case, locking in long term finance now is in a massive benefit and makes paying 6-9 months extra interest on some of the existing loans chicken feed. One of the biggest risks with these type of projects is securing finance to completion, failure to secure refinancing part way through the project can wipe out all equity and write downs on debt if existing lenders call time and look to recover their debt by a distressed sale of a part completed development.
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Post by Badly Drawn Stickman on Apr 4, 2021 10:15:51 GMT
I did notice the word 'may' and think a 'maybe' might have been in there somewhere, so I will wait for 'has just been paid into' before I give it much consideration. On the plus side it has made the 'Fat Larry' loan very popular so got a slightly better price at market for that than had seemed likely.
Anyway Easter eggs to hunt....
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blender
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Post by blender on Apr 4, 2021 14:19:00 GMT
I did notice the word 'may' and think a 'maybe' might have been in there somewhere, so I will wait for 'has just been paid into' before I give it much consideration. On the plus side it has made the 'Fat Larry' loan very popular so got a slightly better price at market for that than had seemed likely. Anyway Easter eggs to hunt.... All loans seem very popular, and some very very popular. One should not be tempted but when offered +5% for a 13% loan which should mature in September what can you do? To keep invested it has been necessary to temporarily hide the bargepole. Keep away from that switch! We lend in interesting times.
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criston
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Post by criston on Apr 4, 2021 14:37:17 GMT
I was hoping if Ablrate have received the funds for payment of 155 & 149, they could distribute it before the end of this tax year. Wouldn't be the first time we have had payments & notifications outside of working days.
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criston
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Post by criston on Apr 5, 2021 15:57:42 GMT
It is a ridiculous situation, whereby a few buyers are blocking probably an enormous volume of current investors loans, from cross transferring these loans from their Standard to IFISA account, in order to reduce their tax liability.
Obviously I understand why the buyers are there & good luck to them, but surely Ablrate could facilitate a system that bypasses them.
This is happening, just as the new ISA year starts.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 5, 2021 16:18:46 GMT
It is a ridiculous situation, whereby a few buyers are blocking probably an enormous volume of current investors loans, from cross transferring these loans from their Standard to IFISA account, in order to reduce their tax liability. Obviously I understand why the buyers are there & good luck to them, but surely Ablrate could facilitate a system that bypasses them. This is happening, just as the new ISA year starts. Not under ISA rules. Has to be an open market and a method for circumventing it would mean it wasn't.
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criston
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Post by criston on Apr 5, 2021 16:22:35 GMT
It is a ridiculous situation, whereby a few buyers are blocking probably an enormous volume of current investors loans, from cross transferring these loans from their Standard to IFISA account, in order to reduce their tax liability. Obviously I understand why the buyers are there & good luck to them, but surely Ablrate could facilitate a system that bypasses them. This is happening, just as the new ISA year starts. Not under ISA rules. Has to be an open market and a method for circumventing it would mean it wasn't. How about time limiting bids on ASMX to allow everyone a chance. 5 minutes is only needed.
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nick
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Post by nick on Apr 5, 2021 16:26:52 GMT
Not under ISA rules. Has to be an open market and a method for circumventing it would mean it wasn't. How about time limiting bids on ASMX to allow everyone a chance. Limiting the bids would mean it isn't an open market so that wouldn't work.
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criston
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Post by criston on Apr 5, 2021 16:42:32 GMT
Something needs to be done.
If we assume half of the loans are in standard accounts, then the possible residual interest would be around £110k.
At 20% that could mean a possible tax bill of £22k, being blocked by £5k worth of bidders unlikely to be filled, only by the unwary.
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blender
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Post by blender on Apr 5, 2021 16:43:14 GMT
If a bonus of say 10% is expected by the market then the market value is above par. There is no way that ablrate could facilitate transfers at par, or can say what the market rate should be. Any solution has to be found within the market itself. All ablrate could do is allow trading above par - why not? Let the iguanas try to run past the snakes.
In any case I think that people are counting the chicks here before the eggs are even laid, and perhaps the bird is a cockerel.
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nick
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Post by nick on Apr 5, 2021 16:52:20 GMT
Something needs to be done. If we assume half of the loans are in standard accounts, then the possible residual interest would be around £110k. At 20% that could mean a possible tax bill of £22k, being blocked by £5k worth of bidders unlikely to be filled, only by the unwary. As blender points out, any transfer into ISA accounts need to be at open market value otherwise the tax status of your entire ISA is at risk. The fact that bids and offers have been limited to 100% already means that there isn't an open market and any transfers you could undertake could arguably jeopardise the status of your ISA were the transactions to be subject to query. In effect you are seeking to transfer undervalue assets into your ISA to reduce your tax burden - which is the reason for the rule in first place.
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Post by overthehill on Apr 5, 2021 17:00:54 GMT
So this is all about investors moving their assets directly (non-cash) from non-isa to isa. Is this even allowed ? I know Proplend doesn't allow you to do this between isa and non-isa accounts.
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criston
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Post by criston on Apr 5, 2021 17:08:53 GMT
Something needs to be done. If we assume half of the loans are in standard accounts, then the possible residual interest would be around £110k. At 20% that could mean a possible tax bill of £22k, being blocked by £5k worth of bidders unlikely to be filled, only by the unwary. As blender points out, any transfer into ISA accounts need to be at open market value otherwise the tax status of your entire ISA is at risk. The fact that bids and offers have been limited to 100% already means that there isn't an open market and any transfers you could undertake could arguably jeopardise the status of your ISA were the transactions to be subject to query. In effect you are seeking to transfer undervalue assets into your ISA to reduce your tax burden - which is the reason for the rule in first place. Wife to Husband & visa versa.
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criston
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Post by criston on Apr 5, 2021 17:10:52 GMT
So this is all about investors moving their assets directly (non-cash) from non-isa to isa. Is this even allowed ? I know Proplend doesn't allow you to do this between isa and non-isa accounts.
No problem with ASMX in between.
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ilmoro
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Post by ilmoro on Apr 5, 2021 17:16:06 GMT
So this is all about investors moving their assets directly (non-cash) from non-isa to isa. Is this even allowed ? I know Proplend doesn't allow you to do this between isa and non-isa accounts.
Yes, providing it is done via an open market which allows all participants chance to acquire the loans not just accounts belonging to the seller. Platform isnt allowed to do it ie no bed & ISA. At the platforms discretion, some do, some dont, it isnt a requirement.
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