ben
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Post by ben on Mar 24, 2016 22:33:44 GMT
I guess at the moment that is the only thing that matters is how much rent it brings in ie enough to cover interest or not on loan. Even if they want to do something with it eventually it will not be during the duration of this loan, planning permission will take time and they will have to get rid of tenants. So the value of the property with any potential planning permission is pretty irrelevant at moment . How do they plan on repaying the loan? Do I understand well that your interest in rent amount is to see if it covers the interest? If they are intending on using the loan to buy the place and hopefully get planning permission, they will need to borrorow more money in the future and if it is does not get planning permission what value does it have as continuing to run as is for them, if the interest on the loan is higher then the rent that they receive will it be worthwile them keeping it or trying to offload it again or worse for us just abandon it completely and let loan be called in
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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 Mar 24, 2016 22:39:56 GMT
I'm slightly concerned by a comment by investibod - "the property is currently owned freehold by the borrower" if he owns the freehold who's died? and why doeshe need to buy it if he already owns it? where does this info come from plse? Brian Actually it was adrianc who said that, and its just bad phrasing when explaining why it is freehold with a lease. The property is held freehold, presumably by the estate of the previous owner, not the borrower. No indication of when probate was granted so could have been going on for a while.
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adrianc
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Post by adrianc on Mar 24, 2016 23:02:08 GMT
Do I understand well that your interest in rent amount is to see if it covers the interest? Quote> Our borrowers are very experienced investors who are building a portfolio of similar pubs with planning potential. They are buying this asset out of probate hence the need for rapid, short term finance whilst they arrange longer term funds to be arranged from a high street lender. \Quote> This seems to suggest (to me) a longer term strategy mind, what they say and what they actually intend, and what they actually do .... Probate bit doesn't quite sound right, having handled a couple of them, it's actually quite a slow process, and property tends to spins it out even further I'm slightly concerned by a comment by investibod - "the property is currently owned freehold by the borrower" if he owns the freehold who's died? and why doeshe need to buy it if he already owns it? where does this info come from plse? Brian I can't get overly excited about the whole probate mullarkey (although I'd not actually noticed that bit, hence the incorrect "currently" - my 'pologies for the confusion). The funds won't be drawn-down until completion of the sale - at which point, probate has been granted and the borrowers will be becoming the owners. They'll be buying the tenants' lease from the previous freeholder. Yes, probate can be a mire - but I'm assuming it's either already granted, fairly close to being granted, or the executors are arranging the sale from the estate before grant so as to distribute cash on grant.
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Liz
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Post by Liz on Mar 24, 2016 23:23:09 GMT
I would like to know the purchase price too.
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homes119
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Post by homes119 on Mar 25, 2016 6:51:01 GMT
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Post by highlandtiger on Mar 25, 2016 8:27:04 GMT
But I'm still a Kentish man. (not one of those chavvy Men of Kent  ) Makes me a Chav then! :-0 (which is appropriate as the terms <allegedly> derives from near here) Brian Which I why I said it. Gotta love them Medway towns.....especially Chatham and Strood. (Although if you are being pedantic, people born in Strood, are actually Kentish men, go figure..)
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Post by chielamangus on Mar 25, 2016 11:35:17 GMT
The more I look at this the less I understand. The whole valuation doc makes it clear that PP has only "hope value", and yet a significant factor in the valuation figures provided (to be fair, not those used by SS) is based on residential comparisons. Alongside this no mention is made of the annual rent accruing to the owner of the site, which is basically what it's worth as a future stream of cashflows given no PP and continued use as a pub. Perhaps it's just the presentation that is confusing me. This (from the SS summary page) would seem to be the bottom line:- "There is no planning permission on the site however there is considerable potential. We are lending on a purely bricks and mortar basis and the 9 year lease in place without any hope of planning value being added". But then I would like to know how much rent it earns. I am amazed that the valuation makes no reference to the rent that the property currently provides, nor the potential cost of buying back the remaining years of the lease in order to do all those things that the valuer says could be done with planning permission. It seems to me that the valuation is based on one thing and SS are lending on another. Investors have to take a view on what the longer term lender will regard as the more important, because that will determine whether repayment will be messy or not.
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treeman
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Post by treeman on Mar 25, 2016 12:23:36 GMT
Well - £690. Bit more than I expected, but quite happy with that.
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ablender
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Post by ablender on Mar 25, 2016 12:42:03 GMT
Anyone selling PBL089?
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Post by brianac on Mar 25, 2016 12:44:20 GMT
not yet, but when the next one comes along ... :-) Brian
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tomtom
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Post by tomtom on Mar 25, 2016 12:49:08 GMT
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ablender
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Post by ablender on Mar 25, 2016 14:36:15 GMT
Want a bit more. In the meantime, trying to buy the bits that are flying around, my browser froze, or better it was SS on Safari which froze. Other websites were fine and SS on Firefox was fine. Still looking as have not managed to buy anything.
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Post by GSV3MIaC on Mar 25, 2016 15:09:46 GMT
Apart from the 'left over rump' of £3k-odd, all the bits hitting the SM are going to be rather small I expect - people knew this was bottom up, so no point in asking for more than you actually wanted (although a few folks maybe forgot to trim their prefunding, so got a bit more than they wanted). Most anyone can be sensibly selling is £690 though.
Maybe in 48 hours** there will be a small shower of SS-housekept (i.e. bought but not paid for) parts, so keep your powder dry. BHs probably didn't even get their mouse out for this one.
** Although '48 hours', over a bank holiday weekend, could turn out to be 96 hours or even more. SS will probably tell us, after they've done it.
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ablender
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Post by ablender on Mar 25, 2016 16:49:34 GMT
I missed everything so far. All I want is £110.
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adrianc
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Post by adrianc on Mar 25, 2016 17:00:12 GMT
I missed everything so far. All I want is £110. You forgot to prefund...?
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