littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jul 15, 2017 8:44:27 GMT
hazellendSo many unanswered questions: Who owns the site now? Who is buying it? Who is borrowing the money? What will they use the funds for? What about the Abl loan? Why would anyone buy from MT at 13% when it is available on Abl at 16% (for now anyway)? What about the Lendy loan that never was? Why all the complex company name changes etc recorded at Companies House? (I am not allowed to detail these here so you will need to look them up yourself) Other questions that I cannot pose without upsetting the mods.
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Post by dan1 on Jul 15, 2017 8:48:16 GMT
ABL loan has just been paused on the SM
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archie
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Post by archie on Jul 15, 2017 8:53:30 GMT
ABL loan has just been paused on the SM Email, being repaid next week.
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Post by dan1 on Jul 15, 2017 8:55:46 GMT
ABL loan has just been paused on the SM Email, being repaid next week. Thanks, I was lucky enough to sell-out yesterday at a small premium so didn't receive the email.
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fp
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Post by fp on Jul 15, 2017 8:58:22 GMT
I too am uncomfortable in supporting this loan for the following reasons: a) Lendy rejected this proposition (some time ago)Gap in time... b) Ablrate took it on But at a 16% to lender rate (which I considered as a High, High risk/speculative opportunity aka Band 'B' Platform PG).Refinance, cheaper Borrowings?? c) MT about to launch it at a mere 13% with only two short months of planning consent left for the holiday cottages and with the applicant having to reapply for planning consent (more risk).Then there's these little blighters... d) Midgies and lot's of them from mid May through to wk 1 or 2 September. Would I personally want to holiday in this stunningly beautiful yet Midgie ridden location during the classic 'Holiday season'? Answer: As a resident Scot, nope I wouldn't but I'd be happy to go there out of season when it's chucking it down with rain, I'd go there for the walking, mountain biking and the peace and quiet.  a), Lendy were touting this as a £2m + loan, basically lending at 100% LTV, with a valuation of over £4m, this was picked up on straight away and its likely L**** didn't proceed due to lack of investor interest, MT are lending a lot less against the same security b) ABL have a second charge on this currently, with a 1.5m charge ahead of them with BoS c) MT are lending on a first charge basis, on a valuation based on no PP being in place. I don't think this is dodgy, the more concerning part about this loan to me is I can only see that BoS have charges registered against it, nothing for the second charge holder, although it is Scotland so things work a bit different up there.
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hazellend
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Post by hazellend on Jul 15, 2017 9:07:59 GMT
Also, the site was purchased for 1.8 million and seems to have been a distressed sale, although details not available. I think this gives some comfort as to a floor price significantly above the loan value being achievable in event of default.
If anything, this loan shows that MT have their investors interest much more at heart than SS do.
Will be sad to be seeing the 16% at ABL going but definitely happy to continue the journey.
Now if only we could sort out the midges!
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Balder
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Post by Balder on Jul 15, 2017 9:42:50 GMT
As stated above ABL have sent an email today saying that the loan will be re-paid next week.
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fasty
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Post by fasty on Jul 15, 2017 9:43:57 GMT
I was OK with this on ABR at 16% commensurate with risk; really not so sure about 13% though.
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ali
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Post by ali on Jul 15, 2017 9:44:51 GMT
Also, the site was purchased for 1.8 million and seems to have been a distressed sale, although details not available. I think this gives some comfort as to a floor price significantly above the loan value being achievable in event of default. I'd be interested in any information you might have (by PM if you prefer) as to any sale. One of the big unanswered questions is just who owns the land today.
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fp
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Post by fp on Jul 15, 2017 10:02:33 GMT
I was OK with this on ABR at 16% commensurate with risk; really not so sure about 13% though. So you are happier with a second charge loan than a first charge? By my reckoning, the ABL loan put it at around 100% ltv on a second charge, the MT loan puts it at 65% on a first charge.
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am
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Post by am on Jul 15, 2017 10:27:30 GMT
hazellend So many unanswered questions: Who owns the site now? Who is buying it? Who is borrowing the money? What will they use the funds for? What about the Abl loan? Why would anyone buy from MT at 13% when it is available on Abl at 16% (for now anyway)? What about the Lendy loan that never was? Why all the complex company name changes etc recorded at Companies House? (I am not allowed to detail these here so you will need to look them up yourself) Other questions that I cannot pose without upsetting the mods. I see exactly zero name changes recorded at Companies House. What I see is three different sets of individuals (two of which have one member in common) who have used the same pair of words in their company names because they have used the name of the property and the nature of the business in the company name. If it wasn't for the ABL loan I would have said that bit was crystal clear.
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fasty
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Post by fasty on Jul 15, 2017 10:28:11 GMT
I was OK with this on ABR at 16% commensurate with risk; really not so sure about 13% though. So you are happier with a second charge loan than a first charge? By my reckoning, the ABL loan put it at around 100% ltv on a second charge, the MT loan puts it at 65% on a first charge. A good observation! This one is all rather complex for my diminutive brain..
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Jul 15, 2017 10:40:18 GMT
Also, the site was purchased for 1.8 million and seems to have been a distressed sale, although details not available. I think this gives some comfort as to a floor price significantly above the loan value being achievable in event of default. If anything, this loan shows that MT have their investors interest much more at heart than SS do. Will be sad to be seeing the 16% at ABL going but definitely happy to continue the journey. Now if only we could sort out the midges! I really hope that this loan works well, as any schadenfreude at being vindicated will be insignificant compared to the damage done to my hugely overweight position in MT.
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hazellend
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Post by hazellend on Jul 15, 2017 10:55:27 GMT
Also, the site was purchased for 1.8 million and seems to have been a distressed sale, although details not available. I think this gives some comfort as to a floor price significantly above the loan value being achievable in event of default. If anything, this loan shows that MT have their investors interest much more at heart than SS do. Will be sad to be seeing the 16% at ABL going but definitely happy to continue the journey. Now if only we could sort out the midges! I really hope that this loan works well, as any schadenfreude at being vindicated will be insignificant compared to the damage done to my hugely overweight position in MT. The only way you would be vindicated is if the loan defaults and even at fire sale achieves nowhere near it's 65% LTV ~ 1.3 million. Do you think this is likely, given the previous sale was distressed and achieved 1.8 mill? Not to mention once planning application extended paper valuation would increase. For me the most important thing is the security. I assume every loan has a significant chance of default when investing so am not overly concerned about the possibility of this happening if the security is good.
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Post by sannytwist on Jul 15, 2017 10:59:30 GMT
This is without doubt the dodgiest loan I can recall seeing offered on MT. I do hope the Things are not losing their grip. Anyone in the Boatyard loan on FS will have seen the difficulties in recovery proceedings in Scotland. I would not be overly surprised if MT pull the loan before launch, but if they don't I will not be participating. I'm so glad l'm not the only one on this forum that isn't so positive on the outlook of this loan.
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