ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329 
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Post by ilmoro on May 9, 2016 19:14:15 GMT
Maybe SS should remove it then, it's not hidden away in some small print somewhere, it's on the main "Investor's Risk Statement" linked on the homepage. Don't forget that PBL6 (That Bloody Hall) is still extant. If it was offered on that loan, then it may still be relevant. No, it stopped being relevant at the end of the initial 6 month term - after that the SM restriction was lifted. PBL5 was probably the last loan it was relevant to as that was a 12m initial term.
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jethro
New Member
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Post by jethro on Jun 23, 2016 15:54:30 GMT
Hi,
May seem a silly question, but on the face of it would I be correct in thinking buying loan parts of 'land' with low LTV's are safer than properties with higher ones?
Lots of land parts seem to have very low LTV's in comparison to other loans I see listed.
Thanks.
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bloodycat
Member of DD Central
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Post by bloodycat on Jun 23, 2016 16:18:13 GMT
Hi, May seem a silly question, but on the face of it would I be correct in thinking buying loan parts of 'land' with low LTV's are safer than properties with higher ones? Lots of land parts seem to have very low LTV's in comparison to other loans I see listed. Thanks. It's not quite that simple. Whilst lower LTV is in general safer you also need to consider how easy it would be to find a willing buyer should the loan default. You also need to be careful, in some cases the LTV quoted is only for SS and they may only hold a second charge on the property in question. Additionally some valuations are rather generous, though this tends to be more of a problem with high LTV loans.
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SteveT
Member of DD Central
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Post by SteveT on Jun 23, 2016 17:27:54 GMT
Hi, May seem a silly question, but on the face of it would I be correct in thinking buying loan parts of 'land' with low LTV's are safer than properties with higher ones? Lots of land parts seem to have very low LTV's in comparison to other loans I see listed. Thanks. Also you need to establish whether the land has been valued as land in its current usage (eg. arable farmland) or as the calculated residual "value" of a potential development that is proposed for that piece of land. You'll often come across valuations where the land "value" has been estimated by the Valuer as the Gross Development Value of some future block of flats, less construction costs and developer's profit margin. That's all very well provided the GDV is reliable (what if the value per apartment is overstated by 20%?), the estimate of construction costs is reasonable (ever heard of a construction project going over budget?) and other developers see the equivalent potential for profit if a forced sale is needed.
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Post by Deleted on Jun 27, 2016 11:53:21 GMT
Perhaps it would be easier for newbies to find this thread if it was pinned (sticky) to the top of the forum.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Jun 27, 2016 11:55:39 GMT
Perhaps it would be easier for newbies to find this thread if it was pinned (sticky) to the top of the forum. So you want two newbie threads stickied to the top of this forum...  Maybe it would better if the mods either merge this with ilmoro current stickied thread, or lock it so that new members use the current stickied thread.
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