ozboy
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Post by ozboy on Apr 3, 2017 16:28:14 GMT
No BHs piling in, yet ...........................something wrong with this one? The LTV is calculated as per usual against GDV (which is always misleading), and seems to me the MV is the same as the Loan, so Real/Current LTV is 100%?EDIT: My mistake, with apologies to FS, Loan is £575K and MV is £1.5M so LTV is as per FS particulars - 38.33% LTV (must get new glasses  ) |
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bg
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Post by bg on Apr 3, 2017 16:37:01 GMT
The LTV is calculated as per usual against GDV (which is always misleading), and seems to me the MV is the same as the Loan, so Real/Current LTV is 100%? It's not though is it? The value is £1.5m v a GDV of £4.375m.....looks decent enough to me.
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ben
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Post by ben on Apr 3, 2017 16:53:02 GMT
The LTV is calculated as per usual against GDV (which is always misleading), and seems to me the MV is the same as the Loan, so Real/Current LTV is 100%? It's not though is it? The value is £1.5m v a GDV of £4.375m.....looks decent enough to me. Not looked at it yet but the GDV when the loan is issued is pretty irrelevent and usually misleading, it is not currently worth that and potential may never be. If the borrower uses the money to fund something else and does not touch this property then the LTV does not change.
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Liz
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Post by Liz on Apr 3, 2017 17:35:40 GMT
The LTV is calculated as per usual against GDV (which is always misleading), and seems to me the MV is the same as the Loan, so Real/Current LTV is 100%? It's not though is it? The value is £1.5m v a GDV of £4.375m.....looks decent enough to me. Looks good to me. This or the agg. land...hmm
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ozboy
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Post by ozboy on Apr 3, 2017 18:09:18 GMT
Yep, have edited my OP:- My mistake, with apologies to FS, Loan is £575K and MV is £1.5M so LTV is as per FS particulars - 38.33% LTV (must get new glasses )Still an absence of BHs though? @ 22:05 - Hmmmmmm, curious, which makes this P2P Lending so interesting, only small/smallish investments with the biggest being only £10K, and a few @ £1K to £3K or so but mainly all in the £100s and lower - why are The Whales keeping away? |
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bg
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Post by bg on Apr 3, 2017 22:26:56 GMT
Yep, have edited my OP:- My mistake, with apologies to FS, Loan is £575K and MV is £1.5M so LTV is as per FS particulars - 38.33% LTV (must get new glasses )Still an absence of BHs though? @ 22:05 - Hmmmmmm, curious, which makes this P2P Lending so interesting, only small/smallish investments with the biggest being only £10K, and a few @ £1K to £3K or so but mainly all in the £100s and lower - why are The Whales keeping away?Probably because the asset is a high rise council flat in Merseyside!
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Liz
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Post by Liz on Apr 3, 2017 22:35:26 GMT
Yep, have edited my OP:- My mistake, with apologies to FS, Loan is £575K and MV is £1.5M so LTV is as per FS particulars - 38.33% LTV (must get new glasses )Still an absence of BHs though? @ 22:05 - Hmmmmmm, curious, which makes this P2P Lending so interesting, only small/smallish investments with the biggest being only £10K, and a few @ £1K to £3K or so but mainly all in the £100s and lower - why are The Whales keeping away?Probably because the asset is a high rise council flat in Merseyside! I would want to know the purchase price before I would even think of investing. I won't be investing BTW.
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ozboy
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Post by ozboy on Apr 3, 2017 22:38:21 GMT
These conversions of Council high rise to Private Sale often turn a handsome profit don't they? I suppose it depends on the location, location, location? |
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ben
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Post by ben on Apr 3, 2017 23:56:27 GMT
These conversions of Council high rise to Private Sale often turn a handsome profit don't they? I suppose it depends on the location, location, location? Depends on location and length of time it takes to complete, with the rates and fees that FS will be charging a delay can quickly eat into any profits. Also with the way the structure is on FS I very rarely invest in any of the developments, as we are usally taking all of the risk.
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elliotn
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Post by elliotn on Apr 4, 2017 4:09:51 GMT
Yep, have edited my OP:- My mistake, with apologies to FS, Loan is £575K and MV is £1.5M so LTV is as per FS particulars - 38.33% LTV (must get new glasses )Still an absence of BHs though? @ 22:05 - Hmmmmmm, curious, which makes this P2P Lending so interesting, only small/smallish investments with the biggest being only £10K, and a few @ £1K to £3K or so but mainly all in the £100s and lower - why are The Whales keeping away?I wonder if the cinema soaked up some liquid funds? Perhaps a tax year re-grouping? Or may be they shudder at being this close to social housing.
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ozboy
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Post by ozboy on Apr 5, 2017 19:49:45 GMT
I am becoming far too risk averse in my dotage, thanks to the excellent and oh so honest VRs from A Certain Well Known P2P, so I have decided to snap out of it and throw caution to the wind, recklessly placing four toes into this one  |
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ding
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Post by ding on May 17, 2017 23:01:15 GMT
Received email to say loan is revised. Spelling mistakes included Interest: 13% Loan amount: £156,250 LTV: 48.8% "A 6-month loan secured against a property in New Brighton, Wallasey. This is the first tranche of a facility loan for a maximum oif £1.5m to fund the renovation of a tower block with a GDV of £4,375,000. Maximum LTV at any stage will be 65%" Ding Ding |
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Post by angrykittens on May 18, 2017 6:26:49 GMT
I made my initial investment in 2807104089 based on the low LTV ratio and first Legal charge. The exit plan was "The client is using the funds to purchase the property and will refinance with longer term development finance." I guess now the Development finance is coming from FS punters? fundingsecure Can you confirm if this new facility - 2183990265 ranks equally with the existing facility - 2807104089 in terms of default recovery, and will further tranches rank equally also? If so then the LTV is / will be being diluted way past what I feel comfortable with and what I agreed to in the first place. Is this type of loan behavior common? I'm relatively new to the Platform so this is the first time I've seen it happen. |
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SteveT
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Post by SteveT on May 18, 2017 6:45:02 GMT
I made my initial investment in 2807104089 based on the low LTV ratio and first Legal charge. The exit plan was "The client is using the funds to purchase the property and will refinance with longer term development finance." I guess now the Development finance is coming from FS punters? fundingsecure Can you confirm if this new facility - 2183990265 ranks equally with the existing facility - 2807104089 in terms of default recovery, and will further tranches rank equally also? If so then the LTV is / will be being diluted way past what I feel comfortable with and what I agreed to in the first place. Is this type of loan behavior common? I'm relatively new to the Platform so this is the first time I've seen it happen. The development finance inevitably will have to rank behind the original loan, although covered by the same first charge, since there was no mention of a further loan facility in the original loan. FS should have made this plain in the email and in the loan description. I imagine it will be added by the time the loan goes live. It's not uncommon for FS to extend further finance to schemes in this way and, IMO, they are always fair to previous lenders.
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Post by excalibur on May 18, 2017 9:04:14 GMT
From what I can work out FS loaned £575k to buy the property 3 days ago (for a total £1.5m sale inc), and now borrowing up to £1.5m from FS to start development and pay off original £575k capital + interest (in 6 months time), starting with a £156k loan today. So FS may argue the development funding will be a first charge as they will ensure they loan further money to pay off original purchase loan - but that's assuming it'll not all go belly up as am at a bit of a loss why this isn't a 2nd charge loan and offering more like 14% interest. So a maximum of £845k of FS money will be spent on refurbishing building (42 flats) - which makes a shortfall of £654k to cover the £1.49m proposed development costs specified in valuation report. They would I assume intend on selling off flats before development is fully completed, valuation report says cheapest flats will be £75k to £80k.
Lot of speculation on this development judging by the original loan already available on the SM at a premium of 0.9% with one punter offering £54,800 at a 1% premium.
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