dp
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Post by dp on Jun 24, 2015 12:57:19 GMT
PBL 040 Just launched
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locutus
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Post by locutus on Jun 24, 2015 13:22:16 GMT
£800,000 valuation for a 90 day sale. Is that not the basis on which the LTV should be calculated rather than the £1.3million.
Still, I checked on Hotels.com and reviews make it sound like a solid business.
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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 Jun 24, 2015 13:34:48 GMT
£800,000 valuation for a 90 day sale. Is that not the basis on which the LTV should be calculated rather than the £1.3million. Still, I checked on Hotels.com and reviews make it sound like a solid business. Given the current investigations/press reports into review websites not sure thats a reliable indicator anymore  Understated LTV issue has been flagged regularly without response from SS, thats the way theyve always done it so we have to make our own call on the risk. PBL7 managed to achieve 20% above the 90 day valuation so thats a plus for them.
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mv
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Post by mv on Jun 24, 2015 16:08:26 GMT
The main purpose of this loan seems to be to refinance out of a commercial mortgage with HSBC with a view to securing another commercial mortgage with Lloyds. Can anybody with more knowledge of this field (or savingstream) explain why this intermediate funding would be necessary or how it compares to the current HSBC mortgage? |
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Post by mrclondon on Jun 24, 2015 17:14:10 GMT
The main purpose of this loan seems to be to refinance out of a commercial mortgage with HSBC with a view to securing another commercial mortgage with Lloyds. Can anybody with more knowledge of this field (or savingstream) explain why this intermediate funding would be necessary or how it compares to the current HSBC mortgage? Random guess - a relatively common situation is sensible rates for commercial mortgages are only available if your current account is with that bank. So its plausible that for whatever reason this borrower is intending to switch everything from HSBC to Lloyds, and needs some breathing space to switch the cuurrent account then the mortgage across, the latter taking time with valuations/legals etc.
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Post by savingstream on Jun 24, 2015 17:50:32 GMT
It's a debt forgiveness deal. There is currently £1m of debt outstanding on the property owed to HSBC, they have dropped the amount owed to £900k to have it repaid. Another bank is not allowed to take it straight on, hence the requirement to use Lendy's bridging funds for 6 months.
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jonah
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Post by jonah on Jun 24, 2015 18:06:45 GMT
It's a debt forgiveness deal. There is currently £1m of debt outstanding on the property owed to HSBC, they have dropped the amount owed to £900k to have it repaid. Another bank is not allowed to take it straight on, hence the requirement to use Lendy's bridging funds for 6 months. Why have hsbc given up 100k though? Is that because a definite 900k is better than a possible 1m and if so is that an indication of perceived risk?
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Investor
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Post by Investor on Jun 24, 2015 18:41:41 GMT
It's a debt forgiveness deal. There is currently £1m of debt outstanding on the property owed to HSBC, they have dropped the amount owed to £900k to have it repaid. Another bank is not allowed to take it straight on, hence the requirement to use Lendy's bridging funds for 6 months. Why have hsbc given up 100k though? Is that because a definite 900k is better than a possible 1m and if so is that an indication of perceived risk? Basel III bank regulations. The 900k debt to a commercial mortgage may tie up 1.8m of the banks capital. If this 1.8m is recycled into other assets which have a lower Basel risk rating, for example residential mortgages, the bank can lend in its entirety without tying up capital. I know this is a simplification but am not going into any detail, feel free to Google Basel III.
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jonah
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Post by jonah on Jun 24, 2015 19:16:54 GMT
Basel III bank regulations. The 900k debt to a commercial mortgage may tie up 1.8m of the banks capital. If this 1.8m is recycled into other assets which have a lower Basel risk rating, for example residential mortgages, the bank can lend in its entirety without tying up capital. I know this is a simplification but am not going into any detail, feel free to Google Basel III. I knew that there are growing core capital ratio requirements and that different risk ratings drove different capital retention but didn't realise the ratio was that high! I hadn't really considered that aspect of lending in this context, so thank you.
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paulg
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Post by paulg on Jul 17, 2015 13:15:56 GMT
PBL 040 was marked as drawndown about an hour ago, and the interest for June has been paid into lenders accounts.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Aug 4, 2016 14:33:13 GMT
While savingstream have become a tad more active on the forum (which we are all very grateful to see  ), I wonder if they could give us an update on this loan. Refinance was deemed to be imminent on the latest update... has all gone well behind the scenes? |
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Post by savingstream on Aug 4, 2016 14:40:45 GMT
Yes all fine, just waiting on Cambridge and Counties BS to finish up their legals. Holiday season is upon us, as mentioned in our post yesterday...
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oldgrumpy
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Post by oldgrumpy on Aug 6, 2016 8:31:53 GMT
I am surprised SS haven't been in contact with the borrower yesterday (Friday) to update us with news on whether (or not) the imminent refinance has been confirmed. Being this is already a loan to refinance an earlier "debt forgiveness", and is overdue, is a "nervy" situation, n'est-ce pas?  |
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oldgrumpy
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Post by oldgrumpy on Aug 10, 2016 7:16:25 GMT
Yes all fine, just waiting on Cambridge and Counties BS to finish up their legals. Holiday season is upon us, as mentioned in our post yesterday... Really? Have you spoken with the borrower since your meeting with him circa 22 July? Did he actually say the building society had confirmed their acceptance or he was awaiting that confirmation? I don't think they are on holiday.
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Post by Deleted on Aug 10, 2016 7:20:39 GMT
I suspect that SS is not aware how much more sensitive we lenders are to their actions at the moment. Come on SS get with the programme until we calm down at least  |
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), I wonder if they could give us an update on this loan.
