Kyrios
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Post by Kyrios on Jul 23, 2018 13:16:45 GMT
Update available now... I start being seriously upset with quite a number of platforms these days. Taking a financial risk is one thing, being fooled is another one...
"23/11/17: The most recent valuation letter puts the value of the security at £2,870,000 (up from £2,750,000 at the previous valuation), giving a current LTV of 69.6%. A further drawdown of £125,000 (5th drawdown) will commence shortly." Today's offer : £750,000.
That's a minor discrepancy, really...
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rick24
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Post by rick24 on Jul 23, 2018 13:19:20 GMT
Continuing the development to completion seems like the best option by far.
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debaura
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Post by debaura on Jul 23, 2018 13:24:20 GMT
Continuing the development to completion seems like the best option by far. I have no idea, with whom? I do not believe £750,000 is a good offer on the site.
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GeorgeT
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Post by GeorgeT on Jul 23, 2018 13:25:10 GMT
Continuing the development to completion seems like the best option by far. It's a gamble given that completion will be over a year away and who knows what the situation of anything will be then. In a vote I may have been inclined to take the 33% now option but it isn't an option because the decision has been made based on a potentially better outcome but probably not until a year or two's time.
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coop
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Post by coop on Jul 23, 2018 13:29:04 GMT
Worth pointing out to MoneyThing there is a 100k difference in cost between the two build out scenarios - is this a typo?
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Post by MoneyThing on Jul 23, 2018 13:35:24 GMT
Worth pointing out to MoneyThing there is a 100k difference in cost between the two build out scenarios - is this a typo? This is correct since there is a difference of £100,000 in terms of provisions. Regards, Ed.
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jlend
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Post by jlend on Jul 23, 2018 13:56:47 GMT
Update available now... I start being seriously upset with quite a number of platforms these days. Taking a financial risk is one thing, being fooled is another one... "23/11/17: The most recent valuation letter puts the value of the security at £2,870,000 (up from £2,750,000 at the previous valuation), giving a current LTV of 69.6%. A further drawdown of £125,000 (5th drawdown) will commence shortly." Today's offer : £750,000. That's a minor discrepancy, really... ... and the offer was circa 50% of the original MT loan, before all the subsequent drawdowns and development. It is interesting how little money can be recovered from trying to sell part finished developments and how much we can reply on QS reports, subsequent valuations etc. Am not picking on MT in particular. I think even the term "secured lending" is given far too much prominence in some PR material from some platforms, even with all the cavaets around "capital at risk" that platforms include. I also think that platforms can no longer simply rely verbatim on the updates provided by development borrowers. Solid, frequent reviews from independent QSs are needed given these loans by their very nature are high risk.
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Post by df on Jul 23, 2018 13:58:39 GMT
Continuing the development to completion seems like the best option by far. It's a gamble given that completion will be over a year away and who knows what the situation of anything will be then. In a vote I may have been inclined to take the 33% now option but it isn't an option because the decision has been made based on a potentially better outcome but probably not until a year or two's time. My default preference is always "to take XX% now", but in this case I believe MT has taken right decision. 33% is too low. Wouldn't be too detrimental for me, Boll****** is only 2% of my MT investment, but for those with large proportion in makes a lot of difference.
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jlend
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Post by jlend on Jul 23, 2018 14:02:57 GMT
Continuing the development to completion seems like the best option by far. It's a gamble given that completion will be over a year away and who knows what the situation of anything will be then. In a vote I may have been inclined to take the 33% now option but it isn't an option because the decision has been made based on a potentially better outcome but probably not until a year or two's time. I think MT have made the right decision given that the administrator will manage the build now, a new builder is involved, and the old builder is no longer involved.
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rocky1
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Post by rocky1 on Jul 23, 2018 14:20:39 GMT
why do the funds have to be through a third party and our loan rank behind the administrators. surely we could fund to completion cheaper than a new lender. 1 more loan by MT lenders would see this out.
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agent69
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Post by agent69 on Jul 23, 2018 14:23:45 GMT
Given the current situation I think the build out option is best, my only concerns being:
- What sort of a qualified builder can't tell within 5 months how long completion will take.
- Where is the administrator getting the money for completion, and how much is it costing? Would it not be a more equitable situation to allow current lenders to finance if they desired to do so?
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dovap
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Post by dovap on Jul 23, 2018 14:28:17 GMT
blimey a 2mill loan needs another 1.3mill to finish it to try to recoup more than the 750K it's worth on a 2nd charge now
fingers crossed
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jsmill
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Post by jsmill on Jul 23, 2018 14:39:39 GMT
why do the funds have to be through a third party and our loan rank behind the administrators. surely we could fund to completion cheaper than a new lender. 1 more loan by MT lenders would see this out. Interesting thought. I would need some more details on the proposed contractors and current state of the local market before even considering this kind of option. Are you thinking of it being on an interest free basis?
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Post by df on Jul 23, 2018 15:18:59 GMT
why do the funds have to be through a third party and our loan rank behind the administrators. surely we could fund to completion cheaper than a new lender. 1 more loan by MT lenders would see this out. I don't think trying to get existing MT lenders to further fund this venture would be successful.
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stevio
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Post by stevio on Jul 23, 2018 15:31:42 GMT
Update available now... I start being seriously upset with quite a number of platforms these days. Taking a financial risk is one thing, being fooled is another one... "23/11/17: The most recent valuation letter puts the value of the security at £2,870,000 (up from £2,750,000 at the previous valuation), giving a current LTV of 69.6%. A further drawdown of £125,000 (5th drawdown) will commence shortly." Today's offer : £750,000. That's a minor discrepancy, really... Makes you wonder if we are really sane to be in P2P? - Perhaps a 10% gain/yr VS 75% potential loss of capital
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