mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Nov 26, 2015 3:28:32 GMT
I think this is just an impression: these loans will have been visible to underwriters for weeks. Conventional underwriters only knew of this late yesterday afternoon. : AC seem to have bypassed the conventional underwriters a few times lately. Are you folks being fed any potential loans? Or do you get the feeling you're being phased out completely?
|
|
tonyr
Member of DD Central
Posts: 477 
Likes: 258
|
Post by tonyr on Nov 26, 2015 4:41:47 GMT
Conventional underwriters only knew of this late yesterday afternoon. : AC seem to have bypassed the conventional underwriters a few times lately. Are you folks being fed any potential loans? Or do you get the feeling you're being phased out completely? It looks to me like the latter, but the deal flow is so poor it's hard to say. There are at least three new sorts of underwriters, Victory Park Capital was disclosed at the start of this year, there's at least one more on the same lines and then there's the QAA which is big enough to buy whole loans. Conventional underwriters haven't seen a big loan since the middle of the summer, and those that existed then (e,g. the E* E* pub and the County Tyrone WT) have either disappeared or been put on indefinite hold. The only ones offered to conventional underwriters have been so small you wonder why AC bothered, it's mostly a fastest-finger-first race. I also don't understand ACs story, it's either going for smaller loans or going for larger loans. You'd have thought that with the paperwork involved they'd want to go for larger ones at (say) more than £1m and then get all the sorts of underwriters they have involved - and that's what I'd like (as an investor, underwriter and future shareholder), but the story seems to be to go for smaller ones which haven't turned up and aren't big enough to satisfy anyone's appetite that I know of. As AC don't have a future if they don't satisfy anyone's appetite so I assume that there's a lot going on with new underwriters that we don't know about.
|
|
|
|
Post by mrclondon on Nov 26, 2015 15:45:10 GMT
#215 South Wales BL ; c. £128k ; 9 months ; 9% ; 65% LTV first charge ; drawdown target this Friday (27th)
So due dilligence time potentially limited to this afternoon only. Not good.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Nov 26, 2015 15:48:45 GMT
One day to do DD before drawdown. Not that you can do much on a couple of individuals. And just 9% on a bridging loan for buy-to-lets. PS just seen mrclondon 's edit  |
|
|
|
Post by mrclondon on Nov 26, 2015 15:56:04 GMT
One day to do DD before drawdown. Not that you can do much on a couple of individuals. And just 9% on a bridging loan for buy-to-lets. PS just seen mrclondon 's edit Agreed. However the redactions on the valuation report make it hard to follow the narrative (esp. given two of the properties are valued at the same figure of £60k.)
|
|
|
|
Post by westcountryfunder on Nov 26, 2015 17:09:09 GMT
One day to do DD before drawdown. Not that you can do much on a couple of individuals. And just 9% on a bridging loan for buy-to-lets. PS just seen mrclondon 's edit Agreed. However the redactions on the valuation report make it hard to follow the narrative (esp. given two of the properties are valued at the same figure of £60k.) Furthermore, do we not need to be extra vigilant now following yesterday's Autumn Budget Statement? The valuations could be suspect now and the LTV somewhat higher. Or are these properties so cheap that extra stamp duty is irrelevant?
|
|
duck
Member of DD Central
Posts: 2,885
Likes: 6,986
Member is Online
|
Post by duck on Nov 26, 2015 18:06:21 GMT
Well since Stamp Duty doesn't come in until £125K and the +3% won't come in until April 2016 not much of an issue (long term I think the CGT changes will have a greater impact)
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Nov 26, 2015 18:15:15 GMT
Well since Stamp Duty doesn't come in until £125K and the +3% won't come in until April 2016 not much of an issue (long term I think the CGT changes will have a greater impact) The +3% comes in above 40k (and applies to the full amount)
|
|
|
|
Post by brummiefred on Nov 26, 2015 18:29:12 GMT
The stamp duty surcharge will lift each band by 3%. That means that for properties worth between £125,000 and £250,000, where the stamp duty is 2%, buy-to-let landlords will pay 5%.
No fees below £125,000
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Nov 26, 2015 18:34:42 GMT
The stamp duty surcharge will lift each band by 3%. That means that for properties worth between £125,000 and £250,000, where the stamp duty is 2%, buy-to-let landlords will pay 5%. No fees below £125,000 That is not correct. It does lift every band by 3%, including the zero band to 3%.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Nov 26, 2015 18:34:33 GMT
I thought that for purchases <£125K the stamp duty will be 0% + 3% = 3%. These properties have been bought just in time. edit: bg SNAP!!! |
|
|
|
Post by mrclondon on Nov 26, 2015 18:37:40 GMT
None of the last few posts are correct. The change is an additional 3% stamp duty on all residential properties costing over £40,000 so on the resale of the 3 properties covered by this loan after April 16 stamp duty of 3% will be due if purchased by a BTL investor. See the government website. EDIT: Also note that the exemption for corporate entitities is being flagged as potentially only applying when an existing portfolio of more than 15 properties is held.
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Nov 26, 2015 18:40:07 GMT
I thought that for purchases <£125K the stamp duty will be 0% + 3% = 3%. These properties have been bought just in time. edit: bg SNAP!!!Having bought some properties off plan the big question for me is whether the extra tax will apply to people who complete after the end of the tax year or exchange after it. Hopefully in my case given I have already exchanged it will be the former.
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Nov 26, 2015 18:41:24 GMT
None of the last few posts are correct. The change is an additional 3% stamp duty on all residential properties costing over £40,000 so on the resale of the 3 properties covered by this loan after April 16 stamp duty of 3% will be due if purchased by a BTL investor. See the government website. Which is exactly what I said!
|
|
agent69
Member of DD Central
Posts: 6,055
Likes: 4,441
|
Post by agent69 on Nov 26, 2015 18:51:52 GMT
Never mind the stamp duty, what about the derisory rate of 9% for a 9 month bridge.
Not for me
|
|
