cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on May 1, 2016 20:47:06 GMT
or SS agree that the loan will default and are willing to sell it for what they can That is the default scenario that i always thought was the norm. (again agreed , we are not there yet, but still interesting, as per what could happen) The fact that the PBL26 security is going to auction is nothing to worry about; it doesn't mean that the loan has gone sour, and it is important to note that the loan has not defaulted. The more likely scenario is that the borrower has just decided they can't personally do anything with the land (because of lack of funds, time or PP) and simply wants to let go of it. I've been doing some digging into the borrower, and it turns out that the sole director of the company is a director of another business that has 55 charges (53 outstanding), with a lot of security held in Stockport (some in the same street as PBL26), with a lot of bridging loan companies involved. The borrower is a mass developer, hedging his bets across a town he probably knows well; holding on to some, developing others and (in the case of PBL26) letting go of the rest. The above borrower is exactly the sort of person who requires the use of a bridging loan. A company that has £10million in Tangible Assets (Property), but very little physical cash available; always investing available money into property.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on May 1, 2016 20:49:30 GMT
That is the default scenario that i always thought was the norm. (again agreed , we are not there yet, but still interesting, as per what could happen) Do we know where it's being auctioned and the reserve price? I've looked, but I can't find it online anywhere.
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ilmoro
Member of DD Central
'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 May 1, 2016 21:12:30 GMT
Remember Savingstream is the borrower on this loan as far as lenders are concerned.
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Post by earthbound on May 1, 2016 21:23:55 GMT
Thanks fellas, i only have a smallish amount in there, but its good to know that beadier eyes than mine are still on the ball.
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ilmoro
Member of DD Central
'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 May 1, 2016 21:42:57 GMT
Thanks fellas, i only have a smallish amount in there, but its good to know that beadier eyes than mine are still on the ball. Eyes but no skin in that one. Whats not clear is whether the extra 200k security pledged for the extension was ever taken and even whether there was actually a formal extension or just ad hoc continuations. Based on the updates, which got stuck on repeat for about 4 months, the latter is probably the case.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on May 1, 2016 22:31:33 GMT
Thanks fellas, i only have a smallish amount in there, but its good to know that beadier eyes than mine are still on the ball. Eyes but no skin in that one. Whats not clear is whether the extra 200k security pledged for the extension was ever taken and even whether there was actually a formal extension or just ad hoc continuations. Based on the updates, which got stuck on repeat for about 4 months, the latter is probably the case. I don't think the extra 200k security ever materialised; if it did, SS would be all to keen to point it out in their updates, maybe even offer the borrower a DFL (seeing as the exit strategy does mention "refinance by development lender"). What is it with the SS overview on this loan... Is this just a case of SS not updating the overview, or am I missing something?
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Post by earthbound on May 1, 2016 23:05:54 GMT
Having looked through the bridging loan particulars, it doesn't appear to me that the borrower ever had any intentions of developing the site, it seems to me that he used the site to secure funding to buy assets else where. 'Land with planning permission bla bla bla He needs the funds to acquire 2 further sites in the area' Not saying what has happened is right/wrong, but going to auction seems to be quite acceptable to the borrower.
edit.. which is fair enough, as long as the loan/interest amount is retrieved.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on May 1, 2016 23:41:54 GMT
Having looked through the bridging loan particulars, it doesn't appear to me that the borrower ever had any intentions of developing the site, it seems to me that he used the site to secure funding to buy assets else where. 'Land with planning permission bla bla bla He needs the funds to acquire 2 further sites in the area' Not saying what has happened is right/wrong, but going to auction seems to be quite acceptable to the borrower. edit.. which is fair enough, as long as the loan/interest amount is retrieved. I think your edit sums it up... The security doesn't have to be linked to the purpose of the loan (although basic information is always good to know), as long as the security covers the value of the loan (with some wiggle room; which is why SS request a max of 70% LTV). As I said in my previous post, the borrower is a mass developer and as such has land available. He can develop this land, but he can also use it as security. In PBL26 scenario, the borrower evidently believes that it's easier to sell the land to repay the loan instead of trying to raise the capital.
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pom
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Post by pom on May 2, 2016 8:49:25 GMT
That is the default scenario that i always thought was the norm. (again agreed , we are not there yet, but still interesting, as per what could happen) Do we know where it's being auctioned and the reserve price? I think you mean the guide price as the reserve will be secret (and if it's like the auctions I had it will only be decided on the day between the auctioneer and vendor, based on the amount of enquiries they've had). Usually you'd expect the reserve price to be somewhere in the guide range, tho it can be set higher if there's been more interest than originally anticipated. If the auction date has already been set, and the sale is live, you may well be able to find the property on rightmove or similar and the listing should include those details - mine only had their listings go live 5-6weeks before, for a concentrated marketing period. Edit - I've had a quick look as the valuation doc includes the postcode. Nothing yet, but they did say it was in legals preparing for auction - takes a while to generate the auction pack for a residential property, so should imagine it's even more complicated for commercial
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ped
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Post by ped on May 2, 2016 12:29:12 GMT
Does anyone have a good pivot table for keeping track of all these loan parts please?
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ilmoro
Member of DD Central
'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 May 2, 2016 12:59:19 GMT
Does anyone have a good pivot table for keeping track of all these loan parts please? SteveT has provided one which I think is still valid, not used it myself, read the whole thread to find the latest version p2pindependentforum.com/post/74480/thread
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ped
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Post by ped on May 2, 2016 13:35:57 GMT
Does anyone have a good pivot table for keeping track of all these loan parts please? SteveT has provided one which I think is still valid, not used it myself, read the whole thread to find the latest version p2pindependentforum.com/post/74480/threadNice one cheers ilmoro and SteveT
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SteveT
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Post by SteveT on May 2, 2016 14:15:51 GMT
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mikes1531
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Post by mikes1531 on May 3, 2016 19:53:40 GMT
... which is why SS request a min of 70% LTV). Or even a maximum of 70% LTV!
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on May 3, 2016 19:59:55 GMT
... which is why SS request a min of 70% LTV). Or even a maximum of 70% LTV! Of course... silly mistake that (and corrected) Where would I be without you mikes1531
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