kaya
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Post by kaya on Dec 12, 2015 12:47:40 GMT
This is due for renewal soon. I don't know if this is relevant, or the same boatyard, but Saving Stream has a pending loan regarding a boatyard, also located in Eyemouth.
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oldgrumpy
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Post by oldgrumpy on Dec 12, 2015 13:10:14 GMT
From the images shown, and others available on Geograph.org, I would say this is the same boatyard. As the prospective loan pays 12% to lenders versus 13% on FS maybe SS offered the company wit a better deal, and twelve months, rather than a FS six month extension.
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mikes1531
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Post by mikes1531 on Dec 12, 2015 19:38:59 GMT
I note that both FS and SS quote a value of £400k. And that the SS loan size is £280k vs the FS loan of £250k. That increase would be about enough to pay the interest and fees due to FS in January -- if it wasn't for the fact that SS take their interest and fees up front, which means the borrower would have to come up with something like £30k from another source in order to reclaim the security from FS.
I'm not in the FS loan, though I don't know exactly why. Looking at the FS valuation now, it might have been because the '90-day sale' value estimate was only £250k.
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oldgrumpy
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Post by oldgrumpy on Dec 12, 2015 19:42:53 GMT
Yes, I am waiting for the SS valuation to find out whether any work has been done to enhance the site's value so that a £400K figure is realistic this time.
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mikes1531
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Post by mikes1531 on Dec 12, 2015 22:27:40 GMT
Yes, I am waiting for the SS valuation to find out whether any work has been done to enhance the site's value so that a £400K figure is realistic this time. One of the problems with FS property loans is that we often aren't told what the borrower says they want to do with the money. Or how they intend to exit the loan. I think they've been asked enough times for this info that they're starting to supply it more often these days. In this case, there was/is no info at all. If the borrower had used the money to improve the yard, I'd have expected the SS valuation to be higher than £400k. We'll just have to wait until we can see the SS valuation -- and hope it's not just a copy of the one done for FS.
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ablender
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Post by ablender on Dec 12, 2015 22:45:22 GMT
So if the boatyard had to be sold quickly (in line with the previous SS defaulted loan) - and taking FS' 90 day sale estimate of £250,000 -
then the FS loan is really a 100% LTV. Not really a good deal, me think.
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Post by Deleted on Dec 28, 2015 18:12:55 GMT
Didn't like the deal first time around, read the detail of the loan and it feels wrong, certainly will not touch it a second time around. There are more and better deals all over the place why touch this one?
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