withnell
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Post by withnell on Aug 14, 2018 10:30:38 GMT
Ca 15k invested in the last 2h. Seems it takes more than a missing payment to dent confidence in this loan. I piled in all the Prestige repayment Hats off to MoneyThing, by providing a timely update they keep an informed market, and those who are risk averse can exit and others can purchase. Other platforms who only inform investors months after the fact have a lot to learn, it definitely increases my confidence in the platform and my willingness to invest in new loans
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Kyrios
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Post by Kyrios on Aug 14, 2018 13:30:58 GMT
Ca 15k invested in the last 2h. Seems it takes more than a missing payment to dent confidence in this loan. I piled in all the Prestige repayment Hats off to MoneyThing, by providing a timely update they keep an informed market, and those who are risk averse can exit and others can purchase. Other platforms who only inform investors months after the fact have a lot to learn, it definitely increases my confidence in the platform and my willingness to invest in new loans I agree, but unfortunately there is no price flexibility on the loan... Even if the loan is technically non performing, we have to buy @ 12% as if nothing had happened...
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Post by Ace on Aug 14, 2018 13:34:02 GMT
Ca 15k invested in the last 2h. Seems it takes more than a missing payment to dent confidence in this loan. I piled in all the Prestige repayment Hats off to MoneyThing, by providing a timely update they keep an informed market, and those who are risk averse can exit and others can purchase. Other platforms who only inform investors months after the fact have a lot to learn, it definitely increases my confidence in the platform and my willingness to invest in new loansWhat new loans? Can't remember when I last saw one!
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sj
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Post by sj on Aug 14, 2018 14:31:34 GMT
I am wondering how and why the account has fallen into arrears - according to the loan particulars, interest is fully covered by the rental income from the bar/restaurant and 2 of the 5 flats upstairs. As far as I can tell, the bar/restaurant is trading as usual (and doing very well according to reviews), harder to find out info on the flats but there appears to be no sign of them being up for rent in the last few months (flat numbers 2 and 3 I believe). So is there an issue with the income, or has the borrower chosen for some reason not to service the interest? The latter would seem strange, given that the loan amount is far less than the property value. Unless there is some issue with the property/CPO that we've not been made aware of - so many questions!
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sapphire
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Post by sapphire on Aug 14, 2018 17:01:13 GMT
MoneyThing 1. As part of the (CPO) sale price agreement, presumably the 'completion' date (i.e the date by which the payment would be made) has been agreed? Any reason(s) why this has not / cannot be disclosed now? Any approximate idea at what point in time this info is expected to be disclosed? I think this info is especially relevant now that the loan is non-performing. 2. What are the reason(s) the agreed CPO purchase price has not been disclosed now? Any approx idea at what point in time this is expected to be disclosed? As public money is at stake in the CPO acquisition I would expect some transparency at an appropriate point in time.
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Post by mrclondon on Aug 14, 2018 17:21:44 GMT
A brief summary of my DD notes (links to support are on DD Central for those with access). I have not researched the compulsory purchase, just the current trading aspects. The most recent accounts of the borrowing company, a property holding company (y/e July 17) show a reduction in shareholder funds of c. £15k over the previous year.
From the loan details on MT: "A commercial and residential property [...] comprised of a ground floor and basement leased by a popular bar/restaurant and five flats above, two of which are owned by the borrower and rented out. The remaining three flats were sold off and the borrower only owns the Freehold. "Council tax records only show three flats (no. 1, 3 & 5) The VR references flats 2 & 3 on page 5 and then on page 7 says "of the 3 upper residential flats, 1 has been sold off, on a long lease, and the other two are occupied by staff of the bar/restaurant business.". On page 10, "No access was available to flats 1 and 3 , it has been assumed they are of similiar size and condition to flat 2 which was inspected" So based on the VR there may be only one tenant in the whole property. (Although this could have changed since the Dec 16 VR). There is presumably some minor ground rent income from the third flat.
The ownership of tenant company that operates the restaurant changed in April/May 2018 (sole director & shareholder replaced with another). The first accounts for the tenant company (to Sept 16) were dormant company accounts, with the balance sheet just showing the share capital of £1. The next accounts to Sept 17 have recently been extended to March 18, and hence don't need filing until the end of 2018. There is nothing in the public domain to indicate the financial perfomance of the restaurant, although it does receive generally good reviews.
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registerme
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Post by registerme on Aug 14, 2018 18:17:41 GMT
There is nothing in the public domain to indicate the financial perfomance of the restaurant, although it does receive generally good reviews.
I went there when it was a pub, and go past it on the bus every few months when visiting friends - it's normally fairly busy.
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oik
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Post by oik on Aug 14, 2018 18:39:53 GMT
Two weeks ago MoneyThing were able to update lenders that a sale price had been agreed with TfL and legals were underway. Could they now tell lenders what that agreed price is?
Also, could they clarify how that price relates to the property on which they have a first charge - bearing in mind that parts of the building have been sold off?
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ptr120
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Post by ptr120 on Aug 14, 2018 18:43:58 GMT
Update on the site that Legals are still progressing with respect to the sale to TfL. They have been asked not to disclose the agreed price at this stage. they will let lenders know as soon as they get a date as to when the sale is expected to complete. What is unsaid here is no commentary at all as to why the loan has fallen in to arrears given that it is an income generating asset, and no commentary as to if / when it might be brought back up to date. An update is better than no update, but it wouldn't be too hard to have made this one more meaningful.
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jlend
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Post by jlend on Aug 14, 2018 20:53:37 GMT
A brief summary of my DD notes (links to support are on DD Central for those with access). I have not researched the compulsory purchase, just the current trading aspects. The most recent accounts of the borrowing company, a property holding company (y/e July 17) show a reduction in shareholder funds of c. £15k over the previous year.
From the loan details on MT: "A commercial and residential property [...] comprised of a ground floor and basement leased by a popular bar/restaurant and five flats above, two of which are owned by the borrower and rented out. The remaining three flats were sold off and the borrower only owns the Freehold. "Council tax records only show three flats (no. 1, 3 & 5) The VR references flats 2 & 3 on page 5 and then on page 7 says "of the 3 upper residential flats, 1 has been sold off, on a long lease, and the other two are occupied by staff of the bar/restaurant business.". On page 10, "No access was available to flats 1 and 3 , it has been assumed they are of similiar size and condition to flat 2 which was inspected" So based on the VR there may be only one tenant in the whole property. (Although this could have changed since the Dec 16 VR). There is presumably some minor ground rent income from the third flat.
The ownership of tenant company that operates the restaurant changed in April/May 2018 (sole director & shareholder replaced with another). The first accounts for the tenant company (to Sept 16) were dormant company accounts, with the balance sheet just showing the share capital of £1. The next accounts to Sept 17 have recently been extended to March 18, and hence don't need filing until the end of 2018. There is nothing in the public domain to indicate the financial perfomance of the restaurant, although it does receive generally good reviews.
From what i could see the land registry seems to think there are 5 flats plus the restaurant. With flats 1, 4 and 5 being sold. The royal mail thinks there are 5 flats plus the restaurant. Perhaps some have been combined?
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keystone
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Post by keystone on Aug 14, 2018 21:12:12 GMT
Zoopla lists 6 flats. 1, 4 and 5 sold in 2001. Flat 6 listed for rent, August 2017.
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jlend
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Post by jlend on Aug 14, 2018 22:05:16 GMT
Zoopla lists 6 flats. 1, 4 and 5 sold in 2001. Flat 6 listed for rent, August 2017. If you click through to flat 6 on zoopla and look at the sales history you will see this is not the pub. It is some other random property so zoopla have messed up the address info and made up a flat 6 by the look of things. I have posted on DD central a link to the original planning apllication for 5 flats split over 2 floors.
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sapphire
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Post by sapphire on Aug 15, 2018 5:22:02 GMT
MoneyThing 1. Presumably MT has been in touch with the borrower about the arrears? Has he/she indicated the reason for being in arrears? On the basis of the borrowers response and available info, does MT expect the arrears status to be a short term/ temporary one or to continue until the CPO exit is completed? 2. If the loan continues to be in arrears can one expect that this loan would be defaulted by MT after the usual arrears period (thereby triggering the higher default interest rate) or would MT refrain from defaulting as the CPO sale price has been agreed and the legals are now underway?
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toast
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Post by toast on Aug 15, 2018 10:11:21 GMT
How is it in arrears if we haven't had any missed interest payments?
Interest is due on 27th of the month and was last paid at the end of July. I understand Moneything no longer pay interest from their own funds.
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jlend
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Post by jlend on Aug 15, 2018 10:15:39 GMT
Does the price agreed for the CPO include the money to compensate the 3 long lease flat owners?
I only ask as the combined value of the 5 flats is i assume worth more than the restaurant and the borrower has sold off 3 of the flats on long leases.
Does the price agreed for the CPO include any money to compensate the restaurant?
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