09dolphin
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Post by 09dolphin on Aug 25, 2016 22:34:45 GMT
Quite confused about this loan (I am elderly so do get a bit mixed up) which is going live on 26/8/16.
FS state that there is "no value to report other than the certainty that the loan proceeds are being paid to suppliers for materials" and the LTV is reflected at 100% until complete when it will be 50%. I realise the borrower intends to pay for labour and overheads whilst FS will pay for materials.
I can't understand exactly what security is being offered.
Whilst it may be a business opportunity, if there is no security what is it doing on this site?
Can anyone explain - as I said I don't always fully understand.
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ben
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Post by ben on Aug 26, 2016 6:05:45 GMT
This is the first tranche with more coming later so which will mean the LTV will change during the loan, not quite sure how it can be 100% to begin with anyway. The asset will be the part built park house although I would prefer a bit more information about where the park house is etc.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Aug 26, 2016 9:17:25 GMT
I imagine these houses will be part-built in a factory and shipped to site. That would explain the lack of land registration security. It does raise a few questions though, like how do we keep control of the asset? What are the transport costs? What is the saleable value in case of default?
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Post by zeverare on Jun 23, 2017 14:38:22 GMT
Latest information:
"The homes are due to be exhibited in June at a show targeted at both trade and retail customers. The combined retail value of the two homes is £470k. The borrower hopes to sell one of the homes which will repay loans, and secure orders for new builds."
Today the first tranche for the construction of 5 new homes is open for funding.
What happened? The potential customers at the show didn't like the 2 current models and want different showroom models?
BTW the new ones are LTV 60% and 12% interest, the previous ones were 50%/13%...
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rs
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Post by rs on Jun 23, 2017 22:23:05 GMT
Latest information: "The homes are due to be exhibited in June at a show targeted at both trade and retail customers. The combined retail value of the two homes is £470k. The borrower hopes to sell one of the homes which will repay loans, and secure orders for new builds." Today the first tranche for the construction of 5 new homes is open for funding. What happened? The potential customers at the show didn't like the 2 current models and want different showroom models? BTW the new ones are LTV 60% and 12% interest, the previous ones were 50%/13%... seems like a loan to poo on.
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bfish
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Post by bfish on Sept 30, 2017 10:06:50 GMT
As I note the total lending across these 'park homes' now amounts to £345,000 (across 24 homes?) - am thinking there really should be a more formal charge against the Company's assets... shouldn't there ? Especially as there are other 'London & Asian investors' also providing short-term funding. No charges are registered @companies House.
No loan appears to have been paid off early, and the 'Holiday Park & Homes Show' @bealieu Sept 22/24 was cancelled due to bad weather - I do hope the Company can sell a few before the winter... !
Never mind, apparently they do 'have extensive experience in the U.S.' - and the CEO has an honest face !!
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trevor
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Post by trevor on Sept 30, 2017 19:17:56 GMT
The majority of caravan parks close for the winter so the chance of a sale before the spring must be minimal
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mikes1531
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Post by mikes1531 on Sept 30, 2017 20:40:04 GMT
The majority of caravan parks close for the winter so the chance of a sale before the spring must be minimal We just have to hope that the borrower can continue to find the funds to renew the various loans/tranches as they come due.
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snowmobile
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Post by snowmobile on Oct 1, 2017 8:30:08 GMT
Oh dear this borrower does seem to be particularly unlucky with the weather. The renewal of tranche 5 states that "The homes were due to be exhibited in June at a show targeted at both trade and retail customers. This had to be cancelled due to bad weather. The homes are now due to be exhibited in the first week of September." This latest renewal states "One of the two homes was due to be displayed at the Holiday Park and Homes Show at Beaulieu on September 22-24 but, due to bad weather, had to be abandoned." If the park homes were located in Florida then excuses about bad weather could be forgiven. However the Beaulieu show still went ahead as far as I can see. A quick search of google images for last week generates a number of park home companies proudly displaying their products in the beautiful Beaulieu sunshine  Strange that the show in the first week of September was not mentioned again. I would have thought that one, being located near Hull, would have made more sense. We are told that the completed park homes are located in a factory in Hull. |
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adrian77
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Post by adrian77 on Oct 1, 2017 9:32:15 GMT
I too am not young and I do not think you are confused at all!
I think this is a very salient point - I would be interested to know what security FS actually has.
Granted the raised money is going to the factory but how do we know where the homes are destined for! Also if the loan was defaulted could FS pursue the factory for the homes - I doubt it unless a specialist legal contract was drawn up.
This one just does not sit right with me
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mikes1531
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Post by mikes1531 on Oct 1, 2017 17:27:56 GMT
Perhaps fundingsecure could explain to us how they have secured this loan. I note that the Ribby-Hall Lodge loan is secured with 'a bill-of-sale'. Presumably that means that if the borrower defaults FS have a piece of paper that they can use to show they own that lodge. Might they have something similar for these park homes? With such, they might be able to go to the manufacturer and show that they're now the owner. ISTM that it would take a major effort to find a buyer for what effectively is a house kit, so I do wonder whether having issued loans up to 70% LTV might have been excessively generous.
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Post by mrclondon on Oct 1, 2017 18:28:03 GMT
I felt sure there was a post yesterday on this thread asking who the borrower was, but it has seemingly been removed. For a clue, look at either of the tranches of the "Five Park Homes" loan, and click on the photo, the manufacturers logo is bottom left.
They have a facebook page that has a few outdated bits of PR (incl a reference to FS providing the build funding), and a website url which isn't in use. Marketing doesn't seem to be their strength.
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snowmobile
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Post by snowmobile on Oct 24, 2017 12:54:54 GMT
Third tranche of the 5 park homes under construction coming up later today. LTV 100% Bid Restriction £500 Form an orderly queue....  |
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rs
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Post by rs on Oct 24, 2017 13:46:14 GMT
Third tranche of the 5 park homes under construction coming up later today. LTV 100% Bid Restriction £500 Form an orderly queue.... No doubt the homes wont be sold for the next 6 months as no one buys park homes during the winter period or is that a generalisation!
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rogerthat
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Post by rogerthat on Oct 24, 2017 19:00:43 GMT
Third tranche of the 5 park homes under construction coming up later today. LTV 100% Bid Restriction £500 Form an orderly queue.... A queue of one isn't a queue...the tea leaves say a resounding 'no' 
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