cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 8, 2016 23:15:15 GMT
In regards to DFL 1, if (big if...) the first tranche release is the suspected £3,000,000 then the LTV on that first tranche will be 75% On DFL 2, if the first tranche release is the suspected £1,000,000 then the LTV on that first tranche will be 80% That sounds right but has yet to be confirmed by SS. Don't forget the SS website states (emphasis mine): Lending is secured with a legal charge, and loan amounts do not exceed 70% of the Open Market Value.
Until I get a confirmed LTV, then I can't commit. PBL085 looks like it will have plenty available for me to invest in. What you say is very true. I would suspect that with the introduction of these new DFLs, SS will change some of their text on their website (you know, sometime before 2020 maybe....). It seems that with these DFLs, SS would rather us concentrate on the GDV (with does indeed not exceed 70% in either of these DFLs); this is fine as a guide, but from my own DD I like to know the LTV at each Tranche. I will treat them much like I treat PBLs; ignore the guide and do my own DD. For example; there are may PBLs which I judge to have an LTV above 70%......
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adrianc
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Post by adrianc on Mar 8, 2016 23:23:11 GMT
@cooling_dude... What does LTGV mean in your overview And why is it when I tag you wit @, it doesn't tag you! LTGV - Loan to Gross Value And some users have a different user name and "display name" - cooling_dude is one of 'em. Hover your mouse over his name (where it's in blue) and the true identity is revealed... But only whisper it quietly...
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Post by chrisuk on Mar 8, 2016 23:48:35 GMT
I'm not going to invest in something I don't understand. I did that a few years ago and got my fingers badly burned. When SavingStream, or someone on this forum who is far more clever than I explains it in simple English, then I might reconsider. In the meantime I'll stick to PBL's.
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ilmoro
Member of DD Central
'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 Mar 8, 2016 23:56:54 GMT
I know yours..... JimBob Gonna call you JimBob from now on.....  Funny name for a girl, is that short for Kate?
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ilmoro
Member of DD Central
'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 Mar 9, 2016 1:12:56 GMT
They still don't make sense to me so my prefund is zero. How much is being released initially and what is the initial LTV? In regards to DFL 1, if (big if...) the first tranche release is the suspected £3,000,000 then the LTV on that first tranche will be 75% On DFL 2, if the first tranche release is the suspected £1,000,000 then the LTV on that first tranche will be 80% Can probably trim DFL1 down to 70%, id included a bit of contingency for fees & SS interest but they seem to imply this wont be covered initially. DFL2 dont see how it can be much less than 1.3m if it is to cover the repayment and £500 development funds
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 9, 2016 7:02:02 GMT
In regards to DFL 1, if (big if...) the first tranche release is the suspected £3,000,000 then the LTV on that first tranche will be 75% On DFL 2, if the first tranche release is the suspected £1,000,000 then the LTV on that first tranche will be 80% Can probably trim DFL1 down to 70%, id included a bit of contingency for fees & SS interest but they seem to imply this wont be covered initially. DFL2 dont see how it can be much less than 1.3m if it is to cover the repayment and £500 development fundsMy mistake; corrected on my DFL2 overview. Which gives a current LTV of 104%......... 
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Jeepers
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Post by Jeepers on Mar 9, 2016 7:25:10 GMT
I won't be investing at a 104% LTV. IMO these DFL's have a much higher risk attached and should be offering more than a 12% return.
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SteveT
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Post by SteveT on Mar 9, 2016 8:11:49 GMT
Generally speaking, development finance loans attract lower rates than bridging loans, which confused me a little when I first started P2P lending (DFLs may be new to SS but they're entirely mainstream on other platforms). In the end I decided it's likely because the valuation ought to be more reliably realisable (or at least a high % thereof) since a new development scheme should be building something that:
a) there is clear market demand for
b) can be compared directly to other local schemes (when the valuer benchmarks prices)
c) can be sold in multiple lots, contracts often being exchanged before practical completion ("off plan")
The "devil" is in the detail of course, and we'll be reliant on the experience and financial stability of the developer, the quality of the appointed contractors and, critically, the skill and attention to detail of the Monitoring Surveyor that SS appoint.
I'm perfectly happy to invest (modest amounts, as usual) in these DFLs as I trust Lendy to have approached them with their usual caution and professionalism. However, once they're up and running, I'll be expecting the same level of openness and detail (copies of the MS reports at each new tranche, etc.) that other platforms provide.
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Post by savingstream on Mar 9, 2016 13:52:22 GMT
Can probably trim DFL1 down to 70%, id included a bit of contingency for fees & SS interest but they seem to imply this wont be covered initially. DFL2 dont see how it can be much less than 1.3m if it is to cover the repayment and £500 development fundsMy mistake; corrected on my DFL2 overview. Which gives a current LTV of 104%......... Cooling Dude - That is the completely wrong way to think of these. It isn't 104% LTV, as we are not asking for the full amount of building loan on day 1, only indicating that we will need that amount over the lifetime of the build which will be increasing in value throughout. DFLs need to be considered from their GDV £ risk and amount of funding at a single point in that 12 month build programme.
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goopy
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Post by goopy on Mar 9, 2016 14:16:05 GMT
Is this loan going live today??
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awk
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Member is Online
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Post by awk on Mar 9, 2016 14:19:05 GMT
Hi Savings Stream,
So do we know what the initial funding will be?
I'm assuming it's the roll-over PBL funding plus the first tranche of development funding released.
I think that you have only given us the total funding value
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sl75
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Post by sl75 on Mar 9, 2016 14:25:01 GMT
Is this loan going live today?? Having liquidated a whole bunch of stuff this morning and lunchtime, in order to free up funds for the 3 loans due to draw down today, I'll be a little upset if it doesn't. Won't be the end of the world though, as there'll probably be plenty of choices of what to re-invest the funds in overnight.
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Post by supernumerary on Mar 9, 2016 14:27:37 GMT
Is this loan going live today?? Having liquidated a whole bunch of stuff this morning and lunchtime, in order to free up funds for the 3 loans due to draw down today, I'll be a little upset if it doesn't. Won't be the end of the world though, as there'll probably be plenty of choices of what to re-invest the funds in overnight. Actually I have done the same today, so you are not the only one... 
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goopy
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Post by goopy on Mar 9, 2016 14:47:16 GMT
Is this loan going live today?? Having liquidated a whole bunch of stuff this morning and lunchtime, in order to free up funds for the 3 loans due to draw down today, I'll be a little upset if it doesn't. Won't be the end of the world though, as there'll probably be plenty of choices of what to re-invest the funds in overnight. Yep, got money burning a hole in my pocket too....
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Post by savingstream on Mar 9, 2016 15:01:32 GMT
Hi Savings Stream, So do we know what the initial funding will be? I'm assuming it's the roll-over PBL funding plus the first tranche of development funding released. I think that you have only given us the total funding value Yes that is correct, we are still working out the actual amount but it will be land loan outstanding, any interest and fees, plus next 12 months interest and fees plus first £500k tranche. Looking like: £2.688m land loan £500k tranche 1 Making £3.188m open to investment, £2.1m of that to roll over leaving £1.088m available for new investment. Bottom up fill.
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