ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,877
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Post by ilmoro on Jun 15, 2022 19:45:10 GMT
Because £537k of the security is by way of personal guarantee, and we all know how much they are worth in reality. The actual security is only work 400k, plus £537k of personal guarantees, loan is for £750k.
I think AC always takes a PG but don't normally rely just on that, it's normally backed or supported by a charge, but I don't see how they get their headline LtV in this case. So I'm double-checking this now
The LTV comes from the valuation based on the trading business (first charge) plus the two security backed guarantees (both secured by charges), the alternative LTV comes from just the trading value of the business & is c64%, the final LTV comes from the vacant possession of the property plus the security backed guarantees and is 80%.
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bugs4me
Member of DD Central
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Post by bugs4me on Jun 16, 2022 7:19:52 GMT
How do you make that out - that's a big difference? Because £537k of the security is by way of personal guarantee, and we all know how much they are worth in reality. The actual security is only work 400k, plus £537k of personal guarantees, loan is for £750k. The problem with relying upon PG's is that it's impossible to monitor them. AC with their monthly monitoring fees are for the fixed asset. If/when that fixed asset project goes belly up then there's a fat chance of realising anything from the PG as it's normally managed to be conveniently disposed of.
The only way round this is for AC to take out a further charge, assuming it is fixed, against the PG which as far as I'm aware, is a rarity. So you're 100% correct in my book to be cynical of the value of PG's.
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warn
Member of DD Central
Curmudgeon
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Post by warn on Sept 28, 2022 17:04:08 GMT
No luck with #1482 yet. I guess it is too small to make any meaningful release to MLA. Ironically I've released some cash from QAA to be available for 1482 (created a cash drag) Now released to MLA - about 5% again so max allocation £31.51. Display errors still present I don't understand why #1482 is so unloved -- sub 50% LTV paying 6.5% interest and a rating of Medium Low -- yet over 70% available. Maybe everyone but me knows something.
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dave4
Member of DD Central
Cynical is a hobby not a lifestyle
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Post by dave4 on Sept 28, 2022 17:49:39 GMT
Now released to MLA - about 5% again so max allocation £31.51. Display errors still present I don't understand why #1482 is so unloved -- sub 50% LTV paying 6.5% interest and a rating of Medium Low -- yet over 70% available. Maybe everyone but me knows something. Think its not the loan thats the problem, its the current uk financial issues, and AC. Look at how many loans have funds available. The appeal / hunger just isnt there.
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Post by df on Sept 28, 2022 18:08:36 GMT
I don't understand why #1482 is so unloved -- sub 50% LTV paying 6.5% interest and a rating of Medium Low -- yet over 70% available. Maybe everyone but me knows something. Think its not the loan thats the problem, its the current uk financial issues, and AC. Look at how many loans have funds available. The appeal / hunger just isnt there. Yes, AC market has moved from starvation to feast. Similar scenario on KUF.
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