webwiz
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Post by webwiz on Feb 26, 2016 11:05:49 GMT
Compare to the comparable the valuation on the 1-beds looks slightly optimistic and the 2-beds considerably pessimistic to me (but what do I know?). Still, seems conservative overall. Instant interest. Looks OK to me.
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mikes1531
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Post by mikes1531 on Feb 26, 2016 11:27:32 GMT
New loan to be posted at 11 am this morning Secured by a first legal charge on property in Herne Bay currently valued at £300,000 Loan Amount: £170,000 Interest: 12% pa - payable from today. LTV: 56.7% There will be a restriction of £5,000 for the first 24 hours : The announcement above says interest will be payable from today. There's no mention of that on the loan page itself whereas there is on the other two loans currently seeking funding. Can you please confirm this isn't a typo and won't soon disappear from the official new loan announcement thread posting?
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mikes1531
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Post by mikes1531 on Feb 26, 2016 11:57:02 GMT
Compare to the comparable the valuation on the 1-beds looks slightly optimistic and the 2-beds considerably pessimistic to me (but what do I know?). Still, seems conservative overall. Instant interest. Looks OK to me. The 2-bed comparables are for flats with two baths, and the proposed 2-bed flats might have just one bath. (The 2-bed flats are larger than the 1-bed flats by no more than 121 sq.ft., which doesn't give a lot of scope for both an additional bedroom and an additional bathroom.) The bottom line is still that the new property should support the proposed loan at a reasonable LTV. So why wasn't the loan funded instantly, as would have been expected if it had come forth a couple of weeks ago? Because there was such a short notice of its opening for funding? Or perhaps because FS investors are being asked to fund a number of loans all at once? (I suspect the £135k Yorkshire loan that's about to open for funding in a few minutes time is going to struggle because of the 11% interest rate.)
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ben
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Post by ben on Feb 26, 2016 12:02:48 GMT
I would a lot of people did not know it was coming, the Yorkshire one is progressing nicely, but I would guess this will be due to the fact the borrorower has borrowed before and repaid so a bit more confidence in him.
Also think there has probably to many decent size loans lately, the wind one took some filling up last week
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rookey123
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Post by rookey123 on Feb 26, 2016 12:07:04 GMT
The Yorkshire loan is by far the most attractive with a 40% LTV and very solid security with brand new build houses. The fact it is 11% rather than 12/13% is not important when you compare the strength of the security.
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webwiz
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Post by webwiz on Feb 26, 2016 12:15:20 GMT
Herne Bay and Yorks both raced past Warminster and Rishton (ugh!) which shows that investors are being selective.
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mikes1531
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Post by mikes1531 on Feb 26, 2016 12:29:24 GMT
... the Yorkshire one is progressing nicely, but I would guess this will be due to the fact the borrorower has borrowed before and repaid so a bit more confidence in him. The Yorkshire loan is by far the most attractive with a 40% LTV and very solid security with brand new build houses. The fact it is 11% rather than 12/13% is not important when you compare the strength of the security. In addition to the above, I've just noticed that the new Yorkshire loan is replacing two smaller loans to the same borrower (totalling £60k) which had been paying 10%, so investors in those probably are happy to transfer their investment into the new loan. Less than half an hour after its release, the Yorkshire loan is two-thirds funded, so it's well on its way.
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mikes1531
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Post by mikes1531 on Feb 26, 2016 12:35:35 GMT
Herne Bay and Yorks both raced past Warminster and Rishton (ugh!) which shows that investors are being selective. With Rishton being so big, I think we could have expected it to struggle to find funding even without competition from other FS loans, and the other loans competing for investors' £££ make matters worse. FS have just announced bonuses for large Rishton investments, so that ought to help. The minimum investment required for a bonus seems high at £25k, but it's consistent with this being a large loan, and those bonuses are going to cost the borrower a packet as it is.
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Steerpike
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Post by Steerpike on Feb 26, 2016 12:39:23 GMT
Herne Bay and Yorks both raced past Warminster and Rishton (ugh!) which shows that investors are being selective. But W and R each have more invested that HB and Y put together.
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Post by mrclondon on Jul 21, 2016 22:24:03 GMT
I walked past the development at lunchtime today. A few builders and lots of material on site, some of the internal ground floor brick walls are up to shoulder height, so a bit further advanced from the photo attached to the latest tranche listing (#5). Not a lot to see, but what there was seemed reasonable quality to the untrained eye, and the site was tidy and ordered. The development has an architects advertising banner, and one from the Your Move agency stating "Coming Soon - 1 bed and 2 bed apartments."
The location is two blocks in from the sea front (a slightly scruffy beach sheltered by a breakwater and the pier) on a street which consists mainly of independent small shops at ground floor with flats above. Its opposite D*****n Street leading to the sea front, so estate agents may claim development as having a sea view (binoculars needed !!!). Five minutes walk to the station, bus stops virtually on the door, and two minutes walk to a reasonable sized Morrison's.
Herne Bay is not the best Kent seaside town, but by no means the worst. Its on the frequent mainline train to London along the north Kent coast, and has 4 buses an hour to Canterbury.
So all things being equal, there should be demand for the finished apartments.
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duck
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Post by duck on Jul 22, 2016 5:43:39 GMT
Thanks for that mrclondon IMHO nothing beats No 1 eyeball when assessing developments, just the site condition says a lot. Anybody interested in Bath, I could probably walk close to that one. |
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mikes1531
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Post by mikes1531 on Jul 22, 2016 17:53:53 GMT
Anybody interested in Bath, I could probably walk close to that one. : Yes, please. As you said, an eyewitness report always is a good thing to have.
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Post by mrclondon on Nov 8, 2016 16:30:09 GMT
The update on at least one of the tranches of this loan that the full loan faciility was about to be repaid via an external refinance was apparently made in error, and the tranche that hit maturity 21st October is being posted for renewal tomorrow.
Anyone that had assumed the late renewal was as a consequence of a pending refinance needs to re-assess now its clear the borrower is simply 2.5 weeks late renewing with no valid excuse. I'm not too concerned for now, but will be watching closely for further issues.
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mikes1531
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Post by mikes1531 on Nov 8, 2016 21:56:24 GMT
The update on at least one of the tranches of this loan that the full loan faciility was about to be repaid via an external refinance was apparently made in error, and the tranche that hit maturity 21st October is being posted for renewal tomorrow. Anyone that had assumed the late renewal was as a consequence of a pending refinance needs to re-assess now its clear the borrower is simply 2.5 weeks late renewing with no valid excuse. I'm not too concerned for now, but will be watching closely for further issues. We ought to give FS some credit here, though, for admitting they made an erroneous update. They could so easily have told us that the refinance wasn't going to happen in time so the borrower decided to renew instead. I do hope I haven't just given FS an idea for future use! 
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Post by dan1 on Feb 15, 2017 14:52:21 GMT
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