sam i am
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Post by sam i am on Feb 15, 2016 21:10:22 GMT
There were a number of potential buyers for the site hence why it has been bought over the Rightmove price. Did I miss this somewhere or is this new information? What price did the farm sell for? Was it valued at the selling price?
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Post by dodgeydave on Feb 15, 2016 22:56:26 GMT
Some of us think about a PG the same way most would think about a chocolate teapot. So... would you rather there be none at all? Come on now; It's there as a last resort, and better than nothing at all. Cooling Dude. You cant have any loans on REBS where PG are not worth FA
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SteveT
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Post by SteveT on Feb 15, 2016 23:12:00 GMT
PGs are only worthless where the Guarantor has no assets. Sadly this proves to be the case all too often when ReBS and FC loans turn sour. However, in this instance SS have said the buyer is wealthy and could have elected to buy the farm from their own resources without borrowing (see earlier post). In that scenario, the PG is certainly worthwhile having and keeps interests aligned.
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Post by highlandtiger on Feb 15, 2016 23:18:42 GMT
Personally I think too many people are overthinking this. Worrying about this scenario and that scenario. We don't need to get into why someone wants this land or what they are going to do with it.
The only thing we have to worry about, is what the land is worth now and what`the land will be worth in a years time. If the borrower defaults, then SS sell the land, and believe me when I say we won't lose a penny on this one, because at a LTV of 70% this arable land will be snapped up for well over that figure.
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ablender
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Post by ablender on Feb 15, 2016 23:20:34 GMT
Personally I think too many people are overthinking this. Worrying about this scenario and that scenario. We don't need to get into why someone wants this land or what they are going to do with it. The only thing we have to worry about, is what the land is worth now and what`the land will be worth in a years time. If the borrower defaults, then SS sell the land, and believe me when I say we won't lose a penny on this one, because at a LTV of 70% this arable land will be snapped up for well over that figure. Yes, but brains need something to think about.  
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ilmoro
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'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 Feb 15, 2016 23:24:01 GMT
PGs are only worth where the Guarantor has no assets. Sadly this proves to be the case all too often when ReBS and FC loans turn sour. However, in this instance SS have said the buyer is wealthy and could have elected to buy the farm from their own resources without borrowing (see earlier post). In that scenario, the PG is certainly worthwhile having and keeps interests aligned. Or when they have assets which magically disappear when called upon 
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registerme
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Post by registerme on Feb 15, 2016 23:30:08 GMT
Personally I think too many people are overthinking this. Worrying about this scenario and that scenario. We don't need to get into why someone wants this land or what they are going to do with it. The only thing we have to worry about, is what the land is worth now and what`the land will be worth in a years time. If the borrower defaults, then SS sell the land, and believe me when I say we won't lose a penny on this one, because at a LTV of 70% this arable land will be snapped up for well over that figure. The risk has to be in a) development starting to a greater degree, b) that (concreted over, foundations dug, vehicles driven hither and thither, and building waste all over the shop) arable land not being planted, and then c) development stalling for some reason.
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paulg
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Post by paulg on Feb 15, 2016 23:46:40 GMT
Personally I think too many people are overthinking this. Worrying about this scenario and that scenario. We don't need to get into why someone wants this land or what they are going to do with it. The only thing we have to worry about, is what the land is worth now and what`the land will be worth in a years time. If the borrower defaults, then SS sell the land, and believe me when I say we won't lose a penny on this one, because at a LTV of 70% this arable land will be snapped up for well over that figure. Exactly! And that's why I am interested to know what will be happening to the farm during the the loan term. If the borrower isn't going to farm it will it be tenanted? If it is how will that effect the value in the event of default? If it's just going to be left unused, allowed to deteriorate (perhaps with squatters etc.) how will that effect the value in the event of default? We're told to view it only as a farm, but not told if it's going to be used as a farm or just land-banking; and the stated exit strategy for the loan doesn't relate to it just being a farm. Saving Stream's responses on here in the last few hours have clarified things a lot, but they don't form part of our loan agreement - as they would if the information was included in the loan summary.
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SteveT
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Post by SteveT on Feb 15, 2016 23:59:10 GMT
Why on earth would somebody buy a farm and NOT ensure it continues to be farmed productively? Leaving aside the farming profit they'd be giving up, and the sundry costs they'd then have to cover from other sources, it would do nothing to increase the chances of them gaining PP for another use and would materially erode the value of the farm as an asset in the event they wanted to sell out instead.
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paulg
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Post by paulg on Feb 16, 2016 1:19:21 GMT
Appendix 1 of the valuation report makes interesting reading, doesn't it?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 16, 2016 1:26:35 GMT
Appendix 1 of the valuation report makes interesting reading, doesn't it? How do you mean; all I see is a letter asking the Estate Agent to carry out a valuation of the land, with some instruction? Am I missing something?
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sl75
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Post by sl75 on Feb 16, 2016 8:03:43 GMT
I find section 15.3 fascinating...
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goopy
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Post by goopy on Feb 16, 2016 10:32:28 GMT
Has anyone had any info as to when these loans are actually going live? Do SS send an email to all prefunders?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 16, 2016 10:37:40 GMT
Has anyone had any info as to when these loans are actually going live? Do SS send an email to all prefunders? All 4 Tranches are going live tomorrow (Wednesday 16th) They gave us an update earlier on in the other thread, and I received an "ADVANCE LOAN GO-LIVE NOTICE" e-mail yesterday at 09:29am
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webwiz
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Post by webwiz on Feb 16, 2016 10:38:19 GMT
Has anyone had any info as to when these loans are actually going live? Do SS send an email to all prefunders? Wednesday am. Yes.
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