stevio
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Post by stevio on Jan 15, 2017 21:37:49 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% ? Sorry, what do you mean by the bit I underlined bold bit?
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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 Jan 15, 2017 21:46:48 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% ? Sorry, what do you mean by the bit I underlined bold bit? Loan 2700488578 is the 2nd loan that sits behind this loan. If the borrower defaulted, then lenders in the 2nd loan would be at much greater risk. That should make FS keen to get a quick recovery.
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phil
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Post by phil on Jan 16, 2017 2:03:26 GMT
"That should make FS keen to get a quick recovery" I'm not sure if the words Funding Secure and quick recovery should be in the same sentence, especially concerning property loans
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stevio
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Post by stevio on Jan 16, 2017 9:31:08 GMT
"That should make FS keen to get a quick recovery" I'm not sure if the words Funding Secure and quick recovery should be in the same sentence, especially concerning property loans and sorry, with respect, with all the loans FS 'manage', I am pretty sure it wouldn't make much any difference in the speed of recovery, how much their investors have in one of hundreds of loans
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Post by fundingsecure on Jan 16, 2017 11:54:52 GMT
We have just posted an update on this loan as follows: "Development work has not started. A package for securing refinance is being submitted to another lender this week. The planning permission remains valid as there are 3 years to run from June 2016."
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stevio
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Post by stevio on Jan 16, 2017 17:51:57 GMT
We have just posted an update on this loan as follows: "Development work has not started. A package for securing refinance is being submitted to another lender this week. The planning permission remains valid as there are 3 years to run from June 2016." Thanks Is the a logical reason for not starting development work during the duration of the previous loan?
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jaswells
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Post by jaswells on Jan 25, 2018 0:47:43 GMT
Loans up for renewal, any reason why work has not started? Can't seem to find any updates and reading previous posts there is just over 1 year left on planning consent?!?
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duck
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Post by duck on Jan 25, 2018 7:24:12 GMT
Loans up for renewal, any reason why work has not started? Can't seem to find any updates and reading previous posts there is just over 1 year left on planning consent?!? The developer who is borrowing against this site is also the owner of an adjoining site (larger loan also on FS as the loan details state) so it is of no surprise to me that work hasn't commenced. Note the borrower also has several other loans on FS against several other sites. The borrower is a very busy man .......
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09dolphin
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Post by 09dolphin on Jan 25, 2018 11:34:37 GMT
This is a consolidation of 2 loans of adjacent properties at Crewkerne both having the same owner and both having loans from FS members.
I have a couple of questions that I can't find the answer to from the information given. Why are the 2 loans being consolidated? My assumption is that one of the loans would break through the "normal" 70% max LTV and therefore the borrower is expecting to cross subsidize the first loan with the smaller 2nd loan. If my assumption is correct why are FS trying to hide the reason for the consolidation and not being explicit.
Personally I have always found being open and honest in business dealings pays dividends as it inspires confidence and people do appreciate honesty which leads to trust.
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adrian77
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Post by adrian77 on Jan 25, 2018 11:52:20 GMT
this all looks very high risk to me considering this chap has not even started building yet
As mentioned this FS loan seems to be an emergency bridging loan as we read
i.e. earlier attempts have failed?
so why else is this chap going to the cost of applying for 2 loans at the same time ?
This looks like ever increasing debt on a building development which has made zero progress - so what happens if this re-financing does not come about?
Think smutty stick and another one to add to my list of interesting loans...
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duck
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Post by duck on Jan 25, 2018 13:45:57 GMT
This is a consolidation of 2 loans of adjacent properties at Crewkerne both having the same owner and both having loans from FS members.
..... This is consolidation of 2 loans on the one property. Whilst the borrower also owns the adjacent site this is not relevant to this individual loan if you want/need to view it in isolation.
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aj
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Post by aj on Jan 26, 2018 13:55:22 GMT
Currently the only active FS loan is 3020318066, the mill itself. The improved access point is '5 S***e L**e L**e' to the west (Top of plans) of the site; this loan has now completed. I'm not sure whether development on the 2 houses on this additional site has begun separately but assume the access to the mill site is now secure.
The second charge loan on the mill site is also completed, so as far as I can tell, the borrower has reduced his borrowing by a good chunk.
If i were to take a guess at what 'scheme commencement' has been made, it would be the demolition of the non listed parts of the mill site? A bit of clarification from FS would be helpful on this!
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mor1
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Post by mor1 on Nov 1, 2018 15:21:07 GMT
The latest update says "Interest has been received. We are currently awaiting for funding to complete prior to closing the loan." Does this signal a change of policy for FS? We have become used to loans being closed as soon as the renewal is posted rather than waiting for funding to complete.
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arby
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Post by arby on Nov 1, 2018 15:36:55 GMT
The latest update says "Interest has been received. We are currently awaiting for funding to complete prior to closing the loan." Does this signal a change of policy for FS? We have become used to loans being closed as soon as the renewal is posted rather than waiting for funding to complete. Where would the money come from to do that?
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mor1
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Post by mor1 on Nov 1, 2018 15:57:56 GMT
The latest update says "Interest has been received. We are currently awaiting for funding to complete prior to closing the loan." Does this signal a change of policy for FS? We have become used to loans being closed as soon as the renewal is posted rather than waiting for funding to complete. Where would the money come from to do that? FS say it comes from "underwriters". For example, the VB Mill loan and 4th trenche of Carlisle have already closed and repaid lenders despite the renewals not being filled yet. Crewkerne has not. I'm wondering whether there is something which makes this loan different or if this represents a change in policy.
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