withnell
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Post by withnell on Jun 24, 2021 14:49:03 GMT
The first notification of an intention to refinance was given on 1st April, with a target of four weeks. The second target date given on 18 May had a target completion date of mid-June. Both have been missed. It is time for a meaningful update from ablrate and for the restriction on these loans to be removed I suspect that given there's a 12m minimum interest commitment there's less incentive to move quickly and more inventive to get the best possible future rate on the refinancing - they in fact save money each additional week that goes by!
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blender
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Post by blender on Jun 24, 2021 15:51:57 GMT
I wonder if there is also a twelve month minimum monthly fee period - I guess not.
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Post by Badly Drawn Stickman on Jun 24, 2021 22:13:08 GMT
I wonder if there is also a twelve month minimum monthly fee period - I guess not. Maybe not fees, but cut of interest payments? Doubt ablrate has much influence in the timings somehow the loan is performing and a long way from being in default so it has to be business as usual (ish) until something actually happens. I am inclined to think they really have little option but to limit to par. If your pigs don't actually get a justified flypast it has to be a pretty good loan to hold at 15% and a fairly clear exit sign lit up. So a little odd that people still seem to be selling, in fact there seemed to be quite a big and general disposal today by somebody.
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GreenZero
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The early bird may get the worm, but it's the second mouse who gets the cheese
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Post by GreenZero on Jun 25, 2021 6:25:48 GMT
What would be the benefit of repaying within the first year if the lender still has to pay interest for the first 12mths?
I wouldn't be surprised if the lenders refinance gets arranged to repay in January to save paying two lots of interest for 5mths.
Just my thoughts, based on my limited knowledge on this.
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Post by Badly Drawn Stickman on Jun 25, 2021 7:36:16 GMT
What would be the benefit of repaying within the first year if the lender still has to pay interest for the first 12mths? I wouldn't be surprised if the lenders refinance gets arranged to repay in January to save paying two lots of interest for 5mths. Just my thoughts, based on my limited knowledge on this. I would assume a sprat (reasonably big sprat admittedly) to catch a mackerel. Now is probably a good time to go fishing.
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blender
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Post by blender on Jun 25, 2021 10:03:13 GMT
With flying pigs and mackerel catching sprats these loans are very active in the domain of zoomorphic metaphors. Abl could not take a share of our interest on prepayment - assuming that our geese lay the golden eggs. Fees are separate and distinct as required by the need to separate the sheep from the goats in p2p. Meanwhile I also like the confidence in the refinance which is producing 15% interest tax free, and provides the ability to sell at par if I need to. Mustn't be greedy, - I suppose.
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Post by overthehill on Jul 22, 2021 11:55:30 GMT
I'm being cautious about these loans if only the first charge lender changes. I'm not a huge fan of that scenario for any loan. New lender record for 2nd charges ? Why is the 1st charge lender wanting out?
Does the title of this thread need to be so explicit ? I'm surprised ablrate hasn't complained. Legally dubious area maybe regarding the thread owner and thread posters.
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criston
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Post by criston on Jul 22, 2021 14:32:16 GMT
If any infrastructure work has completed on site, this would enhance LTV.
This development is massive & I hope Ablrate secure further loans against it.
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criston
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Post by criston on Jul 22, 2021 15:26:42 GMT
If the current first charge remains at £3m, after the £192,000 repayments, with the valuation at £9m, the LTV is now 53%; 1st charge at 33%.
With detailed planning approval, if the current first charge remains at £3m, after the £192,000 repayments, with the valuation at £10.8m, the LTV is now 44%; 1st charge at 28%.
If the first charge has increased to the maximum £3.5m, after the £192,000 repayments, with the valuation at £9m, the LTV is now 59%; 1st charge at 39%.
With detailed planning approval, if the current first charge has increased to the maximum £3.5m, after the £192,000 repayments, with the valuation at £10.8m, the LTV is now 49%; 1st charge at 32%
Any infrastructure work would enhance all the above LTVs.
Further amortisation will also improve the LTV.
Assumes first charge does not amortise.
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Post by overthehill on Jul 22, 2021 18:32:21 GMT
I'm not questioning the loan criteria and the headroom it provides. The first charge holder holds all the cards and he only plays them when the loan hits the skids. It's about the first charge holder, their track record and relationships with junior charge holders. Ablrate willingly and agreeably chose to get into bed with the current first charge holder, does that change when it's refinanced? Possibly.
The expectation is the loan and leisure development will just fly. The location is not exactly known for it's warm and dry climate, two things near the top of most people's requirements. Too gloomy ?
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criston
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Post by criston on Jul 28, 2021 16:34:25 GMT
Hoping the latest update was saying in a roundabout way, the refinancers were not interested, so I am not only holding my substantial existing investment, but loading up while cheap.
81.5%, reinvested at PAR if possible & compounded over 4 years, if run to full term, is not to be sniffed at.
The LTV, when construction work is well underway, will drop significantly.
Not my cup of tea to live there, especially with the weather, but many will love the golfing & care facilities.
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criston
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Post by criston on Nov 6, 2021 12:40:12 GMT
If the current first charge remains at £3m, after the £192,000 repayments, with the valuation at £9m, the LTV is now 53%; 1st charge at 33%. With detailed planning approval, if the current first charge remains at £3m, after the £192,000 repayments, with the valuation at £10.8m, the LTV is now 44%; 1st charge at 28%. If the first charge has increased to the maximum £3.5m, after the £192,000 repayments, with the valuation at £9m, the LTV is now 59%; 1st charge at 39%. With detailed planning approval, if the current first charge has increased to the maximum £3.5m, after the £192,000 repayments, with the valuation at £10.8m, the LTV is now 49%; 1st charge at 32% Any infrastructure work would enhance all the above LTVs. Further amortisation will also improve the LTV. Assumes first charge does not amortise. Two weeks ago we were told 'two to three weeks before completion' so why can't they at least give us an update, especially as we were supposed to be getting weekly updates. However, detailed planning will more than double the value of the security. We are also told there will be enhanced security, but by which means will be interesting to see. All of which would make these loans far superior, to the securities, of any of the recent & current offerings. I wonder if the first charge remains as it is currently. Ablrate used to give you the confidence that they could 'pull any rabbit out of the hat' & even if they straighten up AF loans, they have a long way to go to make up for their lack of communications across the board. A few words now & again can make all the difference & I do not understand why they cannot see that.
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blender
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Post by blender on Nov 6, 2021 13:59:28 GMT
In my experience the lack of an update either means that there is nothing to report yet, or the things that could be reported would not be positive. I chose this project as my main Ablrate investment because of the good security, and the personal guarantee of a well respected businessman with a good track record. This borrower co. has no other Abl loans and there is no holding company to blur the lines of accountability. So the offer of additional security for other loans does not worry me too much, as long as it is new security and does not affect the security assigned to this group of loans.
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hubert
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Post by hubert on Sept 9, 2022 20:46:37 GMT
'September Update: We are meeting with investors in the project next week and will update lenders in the Admin Notes upon the results of that meeting.
Apart from us & h***l* who would be the investors ?
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Post by Ace on Sept 9, 2022 20:55:55 GMT
'September Update: We are meeting with investors in the project next week and will update lenders in the Admin Notes upon the results of that meeting. Apart from us & h***l* who would be the investors ? I assumed he meant the investors that might be offering to purchase the project and hence buy us out.
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