ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 9, 2017 13:54:48 GMT
Interest P/A - 12%
Loan Value - £1,683,600
Security Value - £2,440,000
LTV 69%
Loan Term - 9 months
Pre Fund - None
Bid Limit - None
A Due Diligencing I will go...................................
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 9, 2017 13:57:57 GMT
Interest P/A - 12% Loan Value - £1,683,600 Security Value - £2,440,000 LTV 69% Loan Term - 9 months Pre Fund - None Bid Limit - None A Due Diligencing I will go................................... Shouldnt be difficult, have a look at the MT Bolton MTAH thread as its that loan.
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Investor
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Post by Investor on May 9, 2017 14:04:19 GMT
Afternoon, We have one new loan going live now with no pre-funding and no bid limits. Development Property Loan Interest P/A - 12% Loan value of £1,683,000 (value £2,440,000) LTV 69% Loan Term - 9 months Pre Fund - None Bid Limit - None You can see this loan in Available Loans now - the loan is offering interest at a rate of 12% per annum. Many thanks, Gordon Does this follow your standard procedures for other loans. Is the loan already fully underwritten by collateral/other and we would just be buying that out. Also is interest paid from the point of investment as per other loans
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Post by Collateral Rep on May 9, 2017 14:29:08 GMT
Hi investor, No the loan isn't underwritten by Collateral, we are currently offering the loan to our investors but if there is a shortfall we will then offer it to our underwriters. Interest is paid as soon as you invest. Many thanks, Gordon |
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dermot
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Post by dermot on May 9, 2017 14:55:47 GMT
I thought I'd seen prior mention of a development that had previously undiscovered cellars - is this it resurfacing?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 9, 2017 15:09:14 GMT
I thought I'd seen prior mention of a development that had previously undiscovered cellars - is this it resurfacing? Yes, but the new particulars report that they have now been back filled and the development is progressing with the steel going up.
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dermot
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Post by dermot on May 9, 2017 15:24:01 GMT
I thought I'd seen prior mention of a development that had previously undiscovered cellars - is this it resurfacing? Yes, but the new particulars report that they have now been back filled and the development is progressing with the steel going up. Ta, reading on I see it is an older MT one - I'm wondering why it has moved platforms. 'tis rather puzzling to see it on both platforms - which loan has priority, I wonder - or is this intended to buy out MT? on the + side - 12%; on the - side; more damn students! (though at least in a city far away from me - and maybe dedicated accommodation will reduce the number of messy, untidy HMOs).
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baldpate
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Post by baldpate on May 9, 2017 15:30:17 GMT
Hi Collateral Rep , this loan series is rather different in type and scale to the property loans we have previously been offered by Collateral, in that this is a large development loan to be funded in a series of tranches. So I have a couple of questions which haven't arisen before: a) Will all tranches rank equally in a default situation ? (This seems to be the norm elsewhere) b) Assuming the answer to (a) above is Yes, will Collateral undertake to limit the overall Loan-to-current-value percentage? and to what value? I would not be happy to lend to this tranche at 69% LTCV only to find that one or two tranches down the line the ratio has risen to 90% or more, for example. c) Will repayment of tranches be staggered as a sales of individual units are completed and sufficient funds become accumulated to repay a tranche? - and will tranches repay in the order theu were drawn down? Or something else? Thanks |
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Investor
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Post by Investor on May 9, 2017 15:37:20 GMT
Only 3.5% funded so far. Those with longer memories will be aware that all platforms have faced this dilemma at some during the evolution of their business. Seems to be a very standard issue when trying to take that leap in bridging loans from the >500k loans to the >1m opportunities. This step seems historically to have been overcome by cashback inducements (MT and SS/L) to assist in bridging the bridging gap. I think from the platforms perspective these inducements work out cost effective in the longer run even if they significantly reduce margins on these earlier loans as a way of increasing their investor head count ready for more future loans as their user base develops. Am sure collateral will reach out to the community if they need any assistance in how this has been achieved historically. |
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Post by Collateral Rep on May 9, 2017 15:45:49 GMT
Hi baldpate, a) All loans will rank equally. b) All future loans will be kept to no more than 69% LTV. c) We expect all tranches to be paid at the same time on completion of the development, but if staggered repayments are made we will pay off the oldest loan first. Many thanks, Gordon |
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elliotn
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Post by elliotn on May 9, 2017 15:46:18 GMT
Hi Collateral Rep , this loan series is rather different in type and scale to the property loans we have previously been offered by Collateral, in that this is a large development loan to be funded in a series of tranches. So I have a couple of questions which haven't arisen before: a) Will all tranches rank equally in a default situation ? (This seems to be the norm elsewhere) b) Assuming the answer to (a) above is Yes, will Collateral undertake to limit the overall Loan-to-current-value percentage? and to what value? I would not be happy to lend to this tranche at 69% LTCV only to find that one or two tranches down the line the ratio has risen to 90% or more, for example. c) Will repayment of tranches be staggered as a sales of individual units are completed and sufficient funds become accumulated to repay a tranche? - and will tranches repay in the order theu were drawn down? Or something else? Thanks The build is fixed contract 5.9M vs 8.5M GDV ie Col's standard c70% max. The first development loan BL0018 was a lot smaller but mentioned no ranking of tranches. Edit - crossed with Collateral Rep.
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baldpate
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Post by baldpate on May 9, 2017 16:03:54 GMT
The build is fixed contract 5.9M vs 8.5M GDV ie Col's standard c70% max. The first development loan BL0018 was a lot smaller but mentioned no ranking of tranches. I'd forgotten about BL00018 - thanks for the reminder.
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elliotn
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Post by elliotn on May 9, 2017 16:22:19 GMT
The build is fixed contract 5.9M vs 8.5M GDV ie Col's standard c70% max. The first development loan BL0018 was a lot smaller but mentioned no ranking of tranches. I'd forgotten about BL00018 - thanks for the reminder. It's selling well 
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Post by angrykittens on May 9, 2017 19:42:21 GMT
Long time lurker on this board, decided I should finally register an account, so first time poster!
Please forgive what may seem a noobish question (been looking at P2P in general for about a month, didn't know it was a thing before then)
The stated Security Value - £2,440,000, appears to have been arrived at by combining the following 2 items -
Market Value of Projected Freehold Ground Rents £840,000
Market Value of the site with vacant possession (excluding
FH Ground Rents) £1,600,000
Why would projected rental income be part of a valuation on what is right now, a building site. Worst case scenario they take the loan money and run? The base asset only has a value of 1.6mil (supposedly)
I understand that's a rather cynical view on things, but the more time spent on these boards the more that view seems to hold water!
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 9, 2017 20:48:37 GMT
Long time lurker on this board, decided I should finally register an account, so first time poster! Please forgive what may seem a noobish question (been looking at P2P in general for about a month, didn't know it was a thing before then) The stated Security Value - £2,440,000, appears to have been arrived at by combining the following 2 items - Market Value of Projected Freehold Ground Rents £840,000 Market Value of the site with vacant possession (excluding FH Ground Rents) £1,600,000 Why would projected rental income be part of a valuation on what is right now, a building site. Worst case scenario they take the loan money and run? The base asset only has a value of 1.6mil (supposedly) I understand that's a rather cynical view on things, but the more time spent on these boards the more that view seems to hold water! The valuation is always based on the GDV at the end of the project. It is a potential value for investment purposes so includes the residual value of the land calculated by deducting costs from GDV (based on rental yield/sales potential) and the ground rents. A purchaser isnt buying it as piece of land, he is buying the potential return generated when it is a block of student flats earning revenue from sales/rents incl ground rents. The price is not based on how much a random bit of land is worth for its intrinsic land-iness. A piece of arable land is valued based on the value of what can be grown on it, more for wheat than for grass, development land is valued on what can be built on it, more for a block of student flats than a rubbish tip. Cant say it makes a lot of sense buts thats how it done in the Red Book it seems, same everytime. Over to the Aussie Child for the shouty bit 
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