cooling_dude
Bye Bye's for the PPI
Posts: 2,853 
Likes: 4,298
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Post by cooling_dude on Oct 17, 2016 15:31:42 GMT
LIVE LOAN
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| ------------------ | ------------------
| ------------------
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| @ 1st Tranche
14/10/16
| @ 2nd Tranche
16/11/16
| @ 3rd Tranche 16/05/16
| | Loan Amount | : | £ | 278,083
| 76,498
| 22,575
| | Gross Dev. Value | : | £ | 1,615,000
| 1,615,000
| 1,615,000
| | SS Indicated LTGV | : |
| 17%
| 22%
| 23%
| Current Value
| : | £ | 410,000
| 410,000 | Unknown
| Current LTV
| : |
| 68%
| 86% | Unknown
| | 90 Day Market Valuation | : | £ | 350,000
| 350,000 | Unknown
| | LTV Based on 90 day MV | : |
| 79%
| 101% | Unknown
| | Term | : |
| 455 days
| 428 days
| 246 days
| % PA
| : |
| 12% | 12% | 12% |
PLEASE NOTE : Everything below this line is no longer being updated
Loan Information & Observations
Borrower - R.G.H***** LIMITED
- The above company was established on 23 March 1949
- According to the available accounts, it has no cash in the bank
- The sole director and 100% shareholder is 53yo N******* A*** M*****
- Accounts show that the company currently owes the above director (due to a directors loan that he provided) £828,573.
Loan
- The purpose of this loan is to develop the land (DFL)
- The First tranche of funding (£278k) will be used to clear the outstanding debt on site, against Day 1 land value of £410k (68% LTV).
- 100% of build costs (£715k) to be funded through monthly drawdowns that will be certified by our Independent Monitoring Surveyor following site visits.
- Total borrowing will not exceed 70% of Gross Development Value.
Security
- The property comprises a vacant development plot, broadly uniform in shape
- The land has planning permission for the construction of nine houses and five apartments with associated parking and access provisions
- The security is up for auction on 18 October 2016 with a guide price @ £315,000. This is a tad strange as it would seem to be our borrower trying to sell the security.
- Charges against this security in favour of Commercial First Securities Limited was created in 21.01.2005. The charges appear to be £584,798 as the accounts state that the security has been given for this amount. £550k seems to have been borrowed against the site and accrued interest which now takes this figure to £584k.
Exit Strategy
- Sale of properties
- The sale of the nine houses alone should repay the debt leaving the five apartments as the profit element
| Code Number Assigned | : | 17/10/16
| | Loan went live @ | : | 18/10/16
| | Allocation | : | £125
| | Amount of Investors @ Live | : | 2276
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Credit to ilmoro , MONEY & Jaydee for their input  . Any observations you have please be sure to post it in this thread and I will try to add it to this overview.
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dan83
Posts: 243
Likes: 84
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Post by dan83 on Oct 17, 2016 15:46:45 GMT
Think you should start adding abit at the top stating the interest rate.
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am
Posts: 1,495
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Post by am on Oct 17, 2016 16:40:01 GMT
Is there a personal guarantee?
Will there be a covenant preventing repayment of the director's loan before our first charge is released?
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Oct 17, 2016 16:41:32 GMT
Is there a personal guarantee? Will there be a covenant preventing repayment of the director's loan before our first charge is released? According to the particulars there is a Personal Guarantee and Debenture.
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stevio
Member of DD Central
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Post by stevio on Oct 17, 2016 16:47:25 GMT
584k 1st charge? Against a 410k security? Is SS loan 2nd charge then?
If the property was sold at any stage, director could take back director loan and we would be left with debenture over company with no money?
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fasty
Member of DD Central
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Post by fasty on Oct 17, 2016 16:51:51 GMT
What sort of allocation do we expect? Maybe £200 each?
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cooling_dude
Bye Bye's for the PPI
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Likes: 4,298
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Post by cooling_dude on Oct 17, 2016 16:57:28 GMT
What sort of allocation do we expect? Maybe £200 each? Some will avoid (as it is a tiddler), and my guess is that more funds will be directed to the PBL. I reckon about 1800 investors, so between £150 - £160.
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am
Posts: 1,495
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Post by am on Oct 17, 2016 16:59:12 GMT
584k 1st charge? Against a 410k security? Is SS loan 2nd charge then? If the property was sold at any stage, director could take back director loan and we would be left with debenture over company with no money? If I understand correctly the property can't be sold while there is a charge outstanding. The SS particulars state that we have a first legal charge, and the first tranche will be used to clear outstanding debt on the property, by implication thereby releasing current first charge. (How a £278,000 loan can be used to clear a £584,000 charge is not obvious - presumablly either the charge has already been partially cleared, or the company has acquired a cash balance since the last financial report.)
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Oct 17, 2016 17:29:14 GMT
584k 1st charge? Against a 410k security? Is SS loan 2nd charge then? If the property was sold at any stage, director could take back director loan and we would be left with debenture over company with no money? If I understand correctly the property can't be sold while there is a charge outstanding. The SS particulars state that we have a first legal charge, and the first tranche will be used to clear outstanding debt on the property, by implication thereby releasing current first charge. (How a £278,000 loan can be used to clear a £584,000 charge is not obvious - presumablly either the charge has already been partially cleared, or the company has acquired a cash balance since the last financial report.) The Charge is still current (it's on the land registry). My guess is the Director is going to put yet more money into the company to make up the difference (raising his total loan to the company to over 1m). This land is still due to be auctioned tomorrow! savingstream, can you let us know the situation, please?
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Liz
Member of DD Central
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Post by Liz on Oct 17, 2016 17:42:55 GMT
What sort of allocation do we expect? Maybe £200 each? Some will avoid (as it is a tiddler), and my guess is that more funds will be directed to the PBL. I reckon about 1800 investors, so between £150 - £160. I'm going for £140.
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adrianc
Member of DD Central
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Post by adrianc on Oct 17, 2016 18:15:59 GMT
This is the first tranche. Do we know how big the complete loan's going to be?
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david42
Member of DD Central
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Post by david42 on Oct 17, 2016 18:26:12 GMT
This is the first tranche. Do we know how big the complete loan's going to be? The SS loan description says: "Total borrowing will not exceed 70% of Gross Development Value (£1,615k). "
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am
Posts: 1,495
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Post by am on Oct 17, 2016 18:45:51 GMT
This is the first tranche. Do we know how big the complete loan's going to be? The particulars say full build costs of £715k in addition to this first tranche, so about £1m.
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mikes1531
Member of DD Central
Posts: 6,453
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Post by mikes1531 on Oct 17, 2016 20:28:21 GMT
If the property was sold at any stage, director could take back director loan and we would be left with debenture over company with no money? If I understand correctly the property can't be sold while there is a charge outstanding. The SS particulars state that we have a first legal charge, and the first tranche will be used to clear outstanding debt on the property, by implication thereby releasing current first charge. (How a £278,000 loan can be used to clear a £584,000 charge is not obvious - presumablly either the charge has already been partially cleared, or the company has acquired a cash balance since the last financial report.) Another possible explanation for a £278k loan being used to settle a £584k charge would be if the existing lender already had agreed to take a significant 'haircut' in order to exit from the loan. I don't know if that's likely here, but I've certainly see that happen at AC. (It might also explain the urgency of the bridging loan if the existing lender wants out NOW and has made an offer to take a lesser amount in full settlement as long as the borrower can act quickly.) I'm certainly no expert -- or even close -- but I would have thought that any property could be sold while a charge is outstanding as long as the charge is satisfied during the sale completion process. It's unclear to me, however, what might happen in a situation where the sale proceeds aren't going to be enough to settle the charge in full. In that situation, might the chargeholder have the right to object to the sale and stop it happening?
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guff
Posts: 730
Likes: 707
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Post by guff on Oct 17, 2016 21:06:27 GMT
If I understand correctly the property can't be sold while there is a charge outstanding. The SS particulars state that we have a first legal charge, and the first tranche will be used to clear outstanding debt on the property, by implication thereby releasing current first charge. (How a £278,000 loan can be used to clear a £584,000 charge is not obvious - presumablly either the charge has already been partially cleared, or the company has acquired a cash balance since the last financial report.) Another possible explanation for a £278k loan being used to settle a £584k charge would be if the existing lender already had agreed to take a significant 'haircut' in order to exit from the loan. I don't know if that's likely here, but I've certainly see that happen at AC. (It might also explain the urgency of the bridging loan if the existing lender wants out NOW and has made an offer to take a lesser amount in full settlement as long as the borrower can act quickly.) I'm certainly no expert -- or even close -- but I would have thought that any property could be sold while a charge is outstanding as long as the charge is satisfied during the sale completion process. It's unclear to me, however, what might happen in a situation where the sale proceeds aren't going to be enough to settle the charge in full. In that situation, might the chargeholder have the right to object to the sale and stop it happening?
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