ozboy
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Post by ozboy on Jan 13, 2017 17:43:54 GMT
I am minded to possibly renew on this one however am uneasy about no pertinent updates as to why it's having to renew.
When the Loan was taken out: "Borrower is using finance to acquire the site. Loan will be repaid through development finance. "
Some sort of additional information from FS would, as always, be appreciated.
What's my learned Fellow Investor Lenders thoughts?
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mikes1531
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Post by mikes1531 on Jan 13, 2017 18:44:49 GMT
I fully agree. We need fundingsecure to tell us what the borrower has done about this project during the 6-month term of the loan. Since they already had the PP they should have been able to raise the development financing in that time -- unless something has gone wrong. I won't re-invest without some more information, so I've turned off my 'Renew?' flag. If FS provide us with an update and an explanation why the renewal/extension is necessary, I'll reconsider the situation.
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ozboy
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Post by ozboy on Jan 13, 2017 19:05:28 GMT
Yep, precisely. Summit's up here, these geezers don't hang about once they've got PP so we really do need to know an informative Update on what's going on/the current state of play. I too have decided not to renew, despite the 50% LTV possibly now being a bit lower because of works possibly having been carried out (!), but we've been told nowt. Shame ramblin rose doesn't live near, she could possibly do her usual "swing by" ........... or the Dude probably has a file two inches thick and copious photos on this, if he'll share them?
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michaelc
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Post by michaelc on Jan 13, 2017 20:06:28 GMT
I didn't invest in the first loan (I wasn't on the platform then) but I did like the sound of this one. Hopefully there will be more detail when it goes up tomorrow.
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09dolphin
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Post by 09dolphin on Jan 14, 2017 11:54:59 GMT
I suspect that the owner of the site was more interested in purchasing ownership of the unadopted road to enable them to more easily develop the mill site they have bought and which had planning permission granted in May 2014. However, as they have own the bungalow with planning permission to develop, they would be stupid not to build the houses.
Making assumptions I would guess that the Mill site's development is complete or almost complete (merely because of the time since planning permission has been granted). Progress may have been delayed be due to problems or delays with the Mill development (another guess).
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ben
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Post by ben on Jan 14, 2017 12:41:17 GMT
Was in the orginal loan, when a loan renews unless they put new information up I never reinvest. Even if nothing has changed I would like to know.
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Post by wickedxuk on Jan 14, 2017 13:24:43 GMT
I was tempted to put a bit into this but won't until anext update is posted as requested above. fundingsecure
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mikes1531
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Post by mikes1531 on Jan 14, 2017 15:35:01 GMT
Hopefully there will be more detail when it goes up tomorrow. Hopes dashed! I see only very minor changes to the wording, basically changing the tense... From "Borrower is using finance to acquire the site." to "Borrower has used finance to acquire the site." And from "Loan will be repaid through development finance." to "Loan will be repaid through development finance - currently being sought.". I see no indication whether the effort to obtain development finance started six months ago or last week. Is it fair to presume that the level of design required to obtain PP is less than what's needed to obtain construction bids? If so, is the additional detail required in order to obtain development financing? If so, then perhaps that's what the borrower has been doing these past few months. In any case, it sure would be nice to know this directly from fundingsecure rather than having to sit around speculating.
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markdirac
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Post by markdirac on Jan 14, 2017 18:45:09 GMT
Yep, precisely. Summit's up here, these geezers don't hang about once they've got PP so we really do need to know an informative Update on what's going on/the current state of play. I too have decided not to renew, despite the 50% LTV possibly now being a bit lower because of works possibly having been carried out (!), but we've been told nowt. Shame ramblin rose doesn't live near, she could possibly do her usual "swing by" ........... or the Dude probably has a file two inches thick and copious photos on this, if he'll share them? Depending upon what works have been carried out, and how well they've been carried out, the LTV may be a bit higher.
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ozboy
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Post by ozboy on Jan 15, 2017 13:56:59 GMT
Yes, all rather mysterious.
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Liz
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Post by Liz on Jan 15, 2017 14:02:37 GMT
You have got to ask yourself, what will happen if the borrower can't get development finance? Then what value has the land got in a firesale sinario-with the purchaser knowing the above.
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ozboy
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Post by ozboy on Jan 15, 2017 14:07:50 GMT
And that's one reason why, even with a Headline Grabbing Low LTV, I am out now and not back in.
Others however, who almost certainly don't read this site, are happy to bosh funds in - 87% subscribed as I type.
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ramblin rose
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Post by ramblin rose on Jan 15, 2017 18:05:11 GMT
. Yep, precisely. Summit's up here, these geezers don't hang about once they've got PP so we really do need to know an informative Update on what's going on/the current state of play. I too have decided not to renew, despite the 50% LTV possibly now being a bit lower because of works possibly having been carried out (!), but we've been told nowt. Shame ramblin rose doesn't live near, she could possibly do her usual "swing by" ........... or the Dude probably has a file two inches thick and copious photos on this, if he'll share them? A tad out of my way these days - was a time I drove through it regularly on the way to visit friends in sunny Briddy, but alas that was a different life.
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ozboy
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Post by ozboy on Jan 15, 2017 18:38:39 GMT
Not to worry Rose, sure that if you could, you would!
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sqh
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Post by sqh on Jan 15, 2017 20:39:34 GMT
IMO this thread is a bit negative. My view is that this is a fairly safe loan.
The LTV is 50% but if you read section 18.0 of the VR you'll see that the valuer thinks the access land is worth more than the 100k paid. So 50% LTV is quite conservative.
Secondly, the borrower has paid the interest from their own resources, not by increasing the loan size, and they have paid promptly.
Thirdly, FS have a 2nd loan on this site which has a lower priority. That should focus FS to get a quick result if the loan defaulted.
What more do you want for 13% ?
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