ptr120
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Post by ptr120 on Jan 13, 2016 16:30:34 GMT
These loans are due to be repaid in a matter of days, but the development has yet to receive full planning permission (and from reading the comments from the planners I'm not sure if the plans as they stand are going to be approved). As such, I assume that the developer hasn't yet been able to refinance. Do any members of this forum have experience of such a situation in the past? If the loan goes 'late' will we receive extra / penalty interest?
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adrianc
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Post by adrianc on Jan 13, 2016 16:40:34 GMT
Have a read-up of the Harrogate saga. p2pindependentforum.com/thread/2460/loan-6762-harrogate(and probably other threads) Interest was paid for the delayed period. IIRC, they were going to be introducing penalty interest past the due date, but I don't recall whether that every happened or not. The Harrogate shenanigans differed from this, in that the development was late being completed, so sales could not compete. In this case, the borrower is going to have to arrange other finance - either here or elsewhere - in order to repay, unless he's got some other exit route in place. If the whole deal was dependent on PP being granted, and it's rejected, then we might be into an interesting scenario. I've not looked at the loans. |
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adrianc
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Post by adrianc on Jan 13, 2016 17:07:05 GMT
I've not looked at the loans. Oh, it's THAT one... <does double-take at number of parts owned> Right... Looking at the currently outstanding planning app, they've got Outline Planning Permission (as the original loan details said) - what's being argued now is just detail. The decision was due early Dec, but hasn't been made yet. The loans were bridging finance, with development finance as the next stage. Looks like most of the applications are having a moan about the very concept of more houses - tough, that boat's sailed on this site, let alone the total loser of arguing against the concept. The comments about the demolition contractors probably won't carry much weight - they've finished their job and are off-site now, I'd presume. What's really amusing about it is that this is just over four residences, not the other application for 91 residences and a retail park! They're going to have kittens over that one... Settlement of the loans are due 21st and 27th Jan. Let's see... I'd guess at a few weeks delay, but it'll all pan out.
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blender
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Post by blender on Jan 13, 2016 17:11:40 GMT
Fortunately I had sold mine by the end of September. They had outline planning permission and expected to have full planning permission by now in order to refinance for development. That's perhaps unlikely by 21st. Yes there should be continued interest until it is refinanced.
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