am
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Post by am on Sept 28, 2016 10:10:26 GMT
Could savingstream clarify this please. The literal reading - "the loan will ... be ... released from the pension fund" doesn't make sense to me. My guess is that the intended meaning is that there is a possibility of realising assets within the pension fund (which presumably isn't liquid, or else the bridging loan wouldn't have been necessary) which would be applied either to purchase the property as an investment within the pension fund (which I presume to be unlikely as the other directors presumably don't want to be bought out - or at least didn't before PP was refused) or advance a loan to the SPV. I am also guessing that the pension fund is held by the director/shareholder, rather than being a third party fund which is providing financial backing for investment purposes, but the plain reading matches the latter better.
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arbster
Member of DD Central
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Post by arbster on Sept 28, 2016 10:15:14 GMT
Could savingstream clarify this please. The literal reading - "the loan will ... be ... released from the pension fund" doesn't make sense to me. My guess is that the intended meaning is that there is a possibility of realising assets within the pension fund (which presumably isn't liquid, or else the bridging loan wouldn't have been necessary) which would be applied either to purchase the property as an investment within the pension fund (which I presume to be unlikely as the other directors presumably don't want to be bought out - or at least didn't before PP was refused) or advance a loan to the SPV. I am also guessing that the pension fund is held by the director/shareholder, rather than being a third party fund which is providing financial backing for investment purposes, but the plain reading matches the latter better. I don't think it's necessarily the case that the pension fund isn't liquid. If it's in drawdown then money can be withdrawn, but is likely to be taxable, especially if it's large and the director has other income. It's possible that if this bridge is successful it's far more tax efficient to pay interest on this loan, and the refinance, than it is to remove money from the pension.
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am
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Post by am on Sept 28, 2016 10:29:31 GMT
Could savingstream clarify this please. The literal reading - "the loan will ... be ... released from the pension fund" doesn't make sense to me. My guess is that the intended meaning is that there is a possibility of realising assets within the pension fund (which presumably isn't liquid, or else the bridging loan wouldn't have been necessary) which would be applied either to purchase the property as an investment within the pension fund (which I presume to be unlikely as the other directors presumably don't want to be bought out - or at least didn't before PP was refused) or advance a loan to the SPV. I am also guessing that the pension fund is held by the director/shareholder, rather than being a third party fund which is providing financial backing for investment purposes, but the plain reading matches the latter better. I don't think it's necessarily the case that the pension fund isn't liquid. If it's in drawdown then money can be withdrawn, but is likely to be taxable, especially if it's large and the director has other income. It's possible that if this bridge is successful it's far more tax efficient to pay interest on this loan, and the refinance, than it is to remove money from the pension. If that was the case why would using the pension fund to refinance the loan be considered at all? And if it was liquid then it would definitely be quicker than refinancing commercially. (There's also the question as to why the director would withdraw money from a pension fund so that he could lend it to the SPV, rather than the pension fund lending it directly, but there is the possibility that the fund (SIPP?) provider doesn't allow the relevant asset class.)
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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 Sept 28, 2016 10:39:08 GMT
Hopefully, given his background, he either knows what he's doing or knows someone who knows what he's doing.
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Post by portlandbill on Oct 12, 2016 12:18:33 GMT
Damn! Loan now repaid. Just this morning I finally got to invest all I wanted to, thinking I wont have to battle through the captcha for quite a while, only for this loan to be repaid.
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pom
Member of DD Central
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Post by pom on Oct 12, 2016 12:21:18 GMT
Damn! Loan now repaid. Just this morning I finally got to invest all I wanted to, thinking I wont have to battle through the captcha for quite a while, only for this loan to be repaid. Yep - and it was one of the bigger allocations recently...hey ho
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dan83
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Post by dan83 on Oct 12, 2016 13:25:00 GMT
I thought if a loan repaid early we got our money back plus the interest we would of earned?
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dan83
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Post by dan83 on Oct 12, 2016 13:26:24 GMT
Damn! Loan now repaid. Just this morning I finally got to invest all I wanted to, thinking I wont have to battle through the captcha for quite a while, only for this loan to be repaid. I'm the same, be juggling loans for a while when I could of just sold my share and had done with it. Hopefully another loan will come out soon so we can get our money back in.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Oct 12, 2016 13:29:43 GMT
I thought if a loan repaid early we got our money back plus the interest we would of earned? I think the interest that you would've earned will appear in the main interest payment run at the end of the month.
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Post by portlandbill on Oct 12, 2016 13:39:42 GMT
I thought if a loan repaid early we got our money back plus the interest we would of earned? We do, but I don't want my money back, i want it invested
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dan83
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Post by dan83 on Oct 12, 2016 13:41:07 GMT
I mean the interest over the length of what the loan should of been.
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Post by buttchopf23 on Oct 12, 2016 13:42:26 GMT
I thought if a loan repaid early we got our money back plus the interest we would of earned? I think the interest that you would've earned will appear in the main interest payment run at the end of the month. correct, they changed that one or two months ago, so my interest cannot compound for 20 days, I'm lost 
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SteveT
Member of DD Central
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Post by SteveT on Oct 12, 2016 13:51:42 GMT
I mean the interest over the length of what the loan should of been. Haha, dream on! Interest for the days held this month should be paid at month end.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
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Post by skippyonspeed on Oct 12, 2016 21:49:44 GMT
Bit of waste of all our time. I sold other loan parts for this rubbish so will probably be worse off!
There should be a minimum interest payment of at least 1 month
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Post by GSV3MIaC on Oct 13, 2016 8:34:04 GMT
I thought loans were listed with a minimum duration?
By the way, did anyone get an email or explanation??
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