j
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Penguins are very misunderstood!
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Post by j on May 7, 2014 13:14:02 GMT
Thought we'd start a new thread specifically for this loan as opposed to under the 'new loans' category, just for clarity & specificity.
Decent ltv @ 67%, put a small amount in but will await valuation before dipping anymore or not
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Post by savingstream on May 8, 2014 9:40:12 GMT
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on May 8, 2014 11:54:59 GMT
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unmadem
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Post by unmadem on May 19, 2014 14:46:52 GMT
There has been a change of circumstances.
"There has been a significant change made to the security and loan details for Property Bridging Loan 004. The borrower has sold the warehouse that he intended to use as part security and as such he now requires a lower value loan at a similar LTV. He now requires a £645,000 loan secured against the property to be purchased with a £925,000 valuation (69.7% LTV) The new bridging loan particulars along with the valuation report are now available on the loan details page."
If you have already invested you should have an email. You can get your money back if you want.
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james
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Post by james on May 19, 2014 21:14:41 GMT
How does Saving Stream avoid advancing a loan secured by a property which has been sold between the time of the last check by Saving Stream's solicitor and the time the interest in the security is registered with the Land Registry? Escrow? As you'll be aware, multiple sales or loan advances is one of the ways that property fraud can be carried out, relying on the time window between last check of details and the Land Registry and LR updating its records to reflect the new situation. Of course I've no reason to believe that this borrower would act in this way, it's just a question about how Saving Stream protects against this risk.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on May 19, 2014 21:32:24 GMT
There has been a change of circumstances.
"There has been a significant change made to the security and loan details for Property Bridging Loan 004. The borrower has sold the warehouse that he intended to use as part security and as such he now requires a lower value loan at a similar LTV. He now requires a £645,000 loan secured against the property to be purchased with a £925,000 valuation (69.7% LTV) The new bridging loan particulars along with the valuation report are now available on the loan details page."
If you have already invested you should have an email. You can get your money back if you want.
Also good to see SS honouring cahsback & interest payment for interim period
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Post by mill750 on May 19, 2014 22:54:08 GMT
They responded very quickly to my request of investment plus interest and cash back to be put back in my account , interesting to see that funds can be transferred back almost instantly , a plus in my book
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Post by savingstream on May 20, 2014 8:27:00 GMT
Our law firm is responsible to ensure this doesn't occur and does so by ensuring that the final check of title and the registering of our new charge against the property is carried out simultaneously with the Land Registry. This prevents any time slot being available where another charge could be registered without Lendy being aware.
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james
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Post by james on May 20, 2014 8:56:35 GMT
Thanks.
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alison
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Sanctuary!!
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Post by alison on May 20, 2014 11:50:06 GMT
They responded very quickly to my request of investment plus interest and cash back to be put back in my account , interesting to see that funds can be transferred back almost instantly , a plus in my book Yes I withdrew a small amount as well and it was back in my current account in a couple of hours. It's impressive that they can do this. FK are also the same day but AC seem to take a day. I must say SS seem to have become quite quite a smart operation.
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kermie
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Post by kermie on Oct 8, 2014 22:04:42 GMT
A few points to consider regarding this loan. LTV is 86% based on the property value. What makes the LTV reduce to the stated figure of 69.7% is the inclusion of the "Hope Value" associated with approval of planning for residential development. Planning Application 14/0491/01 has been refused and a new application was lodged on 2nd September, App No 14/2007/01. It therefore seems likely that this PBL is going to roll over. How do you conclude those LTV values? The loan particulars shows a valuation of £925K, loan of £645k, and an offer STPP of £2.6M. Based on the valuation I get the quoted 69.7% LTV. Given the level of the conditional offer (much much higher than the valuation), it doesn't seem unreasonable to conclude that the valuation is based on no PP, although I accept the particulars do not explicitly say this. What am I missing here?
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Post by Deleted on Oct 8, 2014 22:17:02 GMT
The market valuation of the property/land as existing is £750,000 as stated in the valuation report.(if you click on'Available' when looking at the loan details Overview it will bring up the valuation report - but it is not available through the Documents link for some reason).
The valuer considered the possibility of obtaining planning permission for development and attributed 'hope value' of £175,000 for this which made a total of £925,000 including the 'hope value'. The planning has been refused - therefore the hope value hasn't been realised and the 'as existing' valuation of £750,000 is the more realistic one in the current circumstances.
SS however based the LTV on the higher figure including the 'hope value' - which may indicate a lack of knowledge in the property sector - or may have been intentional to make the numbers look better.
A £645,000 loan against a property with a value of £750,000 is a loan to value ratio of 86% - which I suggest is dangerously high given the cyclic up and down turns in the property market and the industry accepted tolerance level of + or - 15%. Hope Value is exactly as it is described, it is 'hope' rather than certainty. Lending against 'hope' is a risky business.
That's why you get a 12% return on your investment when base rate is 0.5% and banks pay about 1% interest on savings. i.e. it comes down to the basics of risk versus reward.
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Post by savingstream on Oct 9, 2014 7:56:24 GMT
For extra information regarding this loan, we have been informed that the borrower has received planning permission on the land, which now values the land at c.£3m (tbc). When we receive confirmation that this is the case, we may look to repay existing loan to lenders and potentially offer the borrower a new loan.
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mikes1531
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Post by mikes1531 on Oct 9, 2014 16:28:43 GMT
For extra information regarding this loan, we have been informed that the borrower has received planning permission on the land, which now values the land at c.£3m (tbc). When we receive confirmation that this is the case, we may look to repay existing loan to lenders and potentially offer the borrower a new loan. Thanks for the update, savingstream. It sounds most encouraging. What would be the purpose of offering the borrower a new loan? Just to allow them a bit more time to sell the property?
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Oct 9, 2014 21:07:43 GMT
What would be the purpose of offering the borrower a new loan? Just to allow them a bit more time to sell the property? Bigger loan perhaps?
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