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Post by multiaccountmanager on Jul 15, 2021 9:01:40 GMT
We are now advised the development property is on the market with S&P but I cannot find the listing.
Interest accrued at 8% originally, then 9% after an extension which gave no opportunity for exit, and 10% since April.
Interest payment depends on finding a developer who is able to finance the project to completion, and although this is supported by an RICS valuation, it does not mean a developer will take the same view.
This could revert to the original developer with less advantageous terms for CP (i.e. us - the lenders)
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littleoldlady
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Post by littleoldlady on Jul 17, 2021 21:35:03 GMT
I am not optimistic about this loan, but one glimmer of hope is that, AFAICS, no development has started, so what is being sold is an undeveloped site with pp which is much better than a partially finished site.
Having said that, I do not take kindly to the borrower borrowing against this property which he was supposed to develop and then spending the money on something else.
EDIT: SEE TWO POSTS DOWN
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Post by Ace on Jul 17, 2021 22:19:12 GMT
I'm not in this one, so I can only follow it from forum postings. Given CP's usual rigour, I'd be surprised if at least the capital couldn't be recovered, and hopefully some, if not all, of the accrued interest.
If a platform had only one loan in several hundred that failed to pay all interest, I'd be pretty satisfied with that platform as long as I'd been kept as well informed as the situation allowed. I'm certainly very interested to hear how this one eventually plays out. My apologies if the situation is worse than I can glean from outside the fence.
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littleoldlady
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Post by littleoldlady on Jul 21, 2021 22:47:42 GMT
In posts above I have said that as the borrower was said to have owned the site for two years prior to the loan then I presumed that the initial loan was for development. I still believe that this was a reasonable assumption (provided it was labelled as an assumption), given the information provided. However I am now informed that this presumption was incorrect and the loan was in fact to repay debt incurred in the earlier purchase. I am sorry about this confusion but do not accept full responsibility as the information should have been clearer. I do not know why they even mentioned that the borrower had owned the property for two years which seems irrelevant and confusing if the loan is for the purchase. And CP had ample opportunity to correct my misapprehension earlier.
Some platforms lend in advance of development but I am informed that CP do not, and only lend against works already completed.
CP are confident that the loan and interest will be repaid in full. I hope they are right. We shall see. The loan has already racked up nearly 3 years interest and CP say it will take 12-18 months to sell, so given a 70% initial LTV we may be relying on inflation to get all our cash back. Hopefully the initial valuation was accurate at the time and the site has appreciated in value, and maybe will appreciate a bit more.
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metoo
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Post by metoo on Jul 22, 2021 0:27:43 GMT
My understanding is that CrowdProperty tranches can be funded on the platform in advance and held by CP on account, but payments to the borrower for construction costs are only made after the MS report approves that the costed works have been done.
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littleoldlady
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Post by littleoldlady on Jul 22, 2021 9:15:11 GMT
My understanding is that CrowdProperty tranches can be funded on the platform in advance and held by CP on account, but payments to the borrower for construction costs are only made after the MS report approves that the costed works have been done. Yes, that is now my understanding also.
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Post by multiaccountmanager on Aug 8, 2021 9:15:54 GMT
In posts above I have said that as the borrower was said to have owned the site for two years prior to the loan then I presumed that the initial loan was for development. I still believe that this was a reasonable assumption (provided it was labelled as an assumption), given the information provided. However I am now informed that this presumption was incorrect and the loan was in fact to repay debt incurred in the earlier purchase. I am sorry about this confusion but do not accept full responsibility as the information should have been clearer. I do not know why they even mentioned that the borrower had owned the property for two years which seems irrelevant and confusing if the loan is for the purchase. And CP had ample opportunity to correct my misapprehension earlier. Some platforms lend in advance of development but I am informed that CP do not, and only lend against works already completed. CP are confident that the loan and interest will be repaid in full. I hope they are right. We shall see. The loan has already racked up nearly 3 years interest and CP say it will take 12-18 months to sell, so given a 70% initial LTV we may be relying on inflation to get all our cash back. Hopefully the initial valuation was accurate at the time and the site has appreciated in value, and maybe will appreciate a bit more. The latest update indicates that Strutt and Parker are marketing at £2.5m asking price. (but I can't find any indication on the S&P web side) The loan was £1.45m then there is 1.5 years at 8% 1 year at 9% and 1.25 years at 10%, say 25% total (not sure if interest is charged on overdue interest). So approx. £1.85m needed to clear the loan and interest.
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Post by multiaccountmanager on Aug 8, 2021 18:43:40 GMT
In posts above I have said that as the borrower was said to have owned the site for two years prior to the loan then I presumed that the initial loan was for development. I still believe that this was a reasonable assumption (provided it was labelled as an assumption), given the information provided. However I am now informed that this presumption was incorrect and the loan was in fact to repay debt incurred in the earlier purchase. I am sorry about this confusion but do not accept full responsibility as the information should have been clearer. I do not know why they even mentioned that the borrower had owned the property for two years which seems irrelevant and confusing if the loan is for the purchase. And CP had ample opportunity to correct my misapprehension earlier. Some platforms lend in advance of development but I am informed that CP do not, and only lend against works already completed. CP are confident that the loan and interest will be repaid in full. I hope they are right. We shall see. The loan has already racked up nearly 3 years interest and CP say it will take 12-18 months to sell, so given a 70% initial LTV we may be relying on inflation to get all our cash back. Hopefully the initial valuation was accurate at the time and the site has appreciated in value, and maybe will appreciate a bit more. The latest update indicates that Strutt and Parker are marketing at £2.5m asking price. (but I can't find any indication on the S&P web side) The loan was £1.45m then there is 1.5 years at 8% 1 year at 9% and 1.25 years at 10%, say 25% total (not sure if interest is charged on overdue interest). So approx. £1.85m needed to clear the loan and interest. BTW, it seems if no interest is charged on overdue interest, then the 9% and 10% rates equate to roughly 8% with interest on interest.
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Post by multiaccountmanager on Aug 9, 2021 7:39:58 GMT
The latest update indicates that Strutt and Parker are marketing at £2.5m asking price. (but I can't find any indication on the S&P web side) The loan was £1.45m then there is 1.5 years at 8%, 1 year at 9%, and 1.25 years at 10%, say 25% total (not sure if interest is charged on overdue interest). So approx. £1.85m needed to clear the loan and interest. BTW, it seems if no interest is charged on overdue interest, then the 9% and 10% rates equate to roughly 8% with interest on interest. I have now reconciled the CP projected "Expected Interest" and Interest is NOT charged on overdue Interest. So the borrower is effectively getting an 8% rate on the principle, with no penalty for being late. 100+8+4+9 =121. So 10/121=8.26% Similarly for a typical CP loan of say 1 year at 8%, the 10% rate equates to 9.2% if account is taken of the overdue interest. (8% of 100 =8 so total 108 earning 10 gives 10/108% =9.2%)
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littleoldlady
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Post by littleoldlady on Aug 27, 2021 15:01:52 GMT
Encouraging noises from CP.
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Post by multiaccountmanager on Oct 31, 2021 13:34:04 GMT
The latest update indicates:-
1 The purchaser is negotiating finance from CP.
2 Property deals like this can take 6 months.
3 Penalty interest is being charged!! See above, the longer this goes on, the lower the effective rate of interest because interest is not charged on overdue interest.
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littleoldlady
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Post by littleoldlady on Jan 19, 2022 17:42:29 GMT
Barber time?
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Post by overthehill on Jan 19, 2022 18:02:06 GMT
Spill the beans. It's a sad day when a P2P company loses its 100% record, not in it, I'd better check, don't think so !
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zuluwarrior
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chap from Newcastle, dabbling here and there. Long-time lurker of the forums
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Post by zuluwarrior on Apr 13, 2022 18:08:09 GMT
Now seemingly on the market with a local agent, no price on it but tough to think it'll clear what is owed
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Apr 13, 2022 18:51:42 GMT
Now seemingly on the market with a local agent, no price on it but tough to think it'll clear what is owed Dont suppose you could share a link please?
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