jlend
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Post by jlend on Apr 23, 2018 5:52:16 GMT
Hi SophieThing In the next monthly update of this loan. Would it be possible for you to add some details around how many exchanges are required in order to pay back the loan. Many thanks Hi jlend , Yes we can include that in the update. Kind regards Sophie Hi SophieThing Do i take it from the last update that it is no longer possible to repay the loan from the money collected from the exchanges and deposits as per the original loan description? Has all the money been spent on the work to date? Any news on the bulk sale of flats you mentioned? Will default interest be applied if the loan hasnt been repaid at the end of the likely 3 month extension? Cheers
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jlend
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Post by jlend on Apr 23, 2018 7:43:55 GMT
Update on MT, three month extension being mooted. Decision on revised planning application delayed because of local elections. Three months seems a little optimistic to me given what we have seen with previous loans and the delay to planning. I trust they have got a good grip of the updated finance and development costs. The finance interest rate to date has been circa double what was in the original surveyor report, the build is taking longer, there have been extra costs for the new design and planning application, there will be extra build costs as the building will now have a larger footprint and be taller, there is a s106 cost that i couldnt see in the original surveyors report but i may have missed it. Etc. I trust the costs will be updated if the current valuation is updated to give the valuation figure some context. It is easy to get carried away with valuations.
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star dust
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Post by star dust on May 4, 2018 14:36:15 GMT
Loan now extended by three months to 24/08/18 to allow re-finance.
In a number of other updates on site MTAX780 - Ground Rent Bridging Loan has also been extended by three months.
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jlend
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Post by jlend on May 4, 2018 14:44:56 GMT
I see not even a partial repayment of the loan is being made from the exchanges so far. They have had quite a few albeit they have been slower.
I assume all the money is already allocated so is not available to make a partial repayment.
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pom
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Post by pom on May 4, 2018 15:39:02 GMT
I see not even a partial repayment of the loan is being made from the exchanges so far. They have had quite a few albeit they have been slower. I assume all the money is already allocated so is not available to make a partial repayment. Not sure why you'd expect there to be, MT don't do partial repayments as a rule, hence some of the loans in multiple tranches so they CAN be partially repaid early. Not to say they couldn't do it if they have to, clearly they are having to with today's repayment, but as we don't have it yet it's also clearly not at all easy.
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jlend
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Post by jlend on May 4, 2018 15:41:03 GMT
I see not even a partial repayment of the loan is being made from the exchanges so far. They have had quite a few albeit they have been slower. I assume all the money is already allocated so is not available to make a partial repayment. Not sure why you'd expect there to be, MT don't do partial repayments as a rule, hence some of the loans in multiple tranches so they CAN be partially repaid early. Not to say they couldn't do it if they have to, clearly they are having to with today's repayment, but as we don't have it yet it's also clearly not at all easy. Agreed. I was not expected a partial repayment from the borrower. It was just a comment.
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Post by notascooby on May 9, 2018 18:48:51 GMT
I suppose the question really is - are we as lenders confident that this loan will be repaid and this won't be another PR*******Y hotel scenario? That had a much better LTV ration. On the For Sale queue £780,000 suggests otherwise.
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hazellend
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Post by hazellend on May 9, 2018 18:59:44 GMT
I suppose the question really is - are we as lenders confident that this loan will be repaid and this won't be another PR*******Y hotel scenario? That had a much better LTV ration. On the For Sale queue £780,000 suggests otherwise. Nothing to do but sit tight now. I think this one will be refinanced but depends on off plan sales.
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withnell
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Post by withnell on May 10, 2018 13:55:51 GMT
There's c.30% on quite a few of the big loans - the fact it doesn't cost anything to be there plus the (likely) ability to buy back even with a flurry of activity would mean quite a few people would put the parts up even if they intend to stay
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jlend
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Post by jlend on Jun 5, 2018 17:43:13 GMT
Link to May newsletter posted on DD central
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jlend
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Post by jlend on Jun 18, 2018 10:44:58 GMT
Hi MoneyThing Some thoughts for the next update? 1. Planning permission was due to come through mid June. Any news yet? 2. How many exchanges have there been now? How close are they to having enough exchanges if the refinance takes longer than the 3 month extension to repay the loan? The borrower was pursuing a bulk sale of the flats, has this progressed? Have they spent any of the exchange money yet? 3. Are they going to continue with the groundworks or wait until the loan is refinanced? 4. Any progress with the refinance? Any loan providers started conducting due dilligence?
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star dust
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Post by star dust on Jun 29, 2018 10:52:18 GMT
Update from MT on site today, only bit of new news:
"83 units have now exchanged and a further 18 units have been reserved"
The May Newsletter ( already posted in DDC) was attached with MT's 'version' having a fourth page with local development news stories. No news on anything else, and having just looked at the local planning site ( link also in DDC) nothing is happening yet.
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jlend
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Post by jlend on Jun 29, 2018 11:03:52 GMT
Update from MT on site today, only bit of new news:
"83 units have now exchanged and a further 18 units have been reserved"
The May Newsletter ( already posted in DDC) was attached with MT's 'version' having a fourth page with local development news stories. No news on anything else, and having just looked at the local planning site ( link also in DDC) nothing is happening yet. Totals for Exchanges over last few months Nov - 42 - 18 reserved Dec - No update Jan - 51 - 23 reserved Feb - 56 - 30 reserved Mar - 66 - 25 reserved Apr - No update May - No update Jun - 83 - 18 reserved So averaging somewhere between 5 and 10 a month. Original target provided by borrower was 100 by September 2017. No revised target published since then. Circa 312 in total - depending on new plans/planning permission. They are yet to see a big uptake in sales due to taking on a different agent or the revision in their plans for more 2 bed flats. Hopefully things will pick up for them.
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mary
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Post by mary on Jun 29, 2018 13:48:54 GMT
Agreed, but the 18 additional reservations will, assuming no drop outs, take them over the 100 target.
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jlend
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Post by jlend on Jun 29, 2018 13:59:34 GMT
Agreed, but the 18 additional reservations will, assuming no drop outs, take them over the 100 target. Agreed. Another 18 will mean they reach the 100 target for September 2017 - so circa 12 months late. Based on the track record to date 18 exchanges will take between 2 and 3 months. I have added the number of reserves they highlight each month. It is not possible to be certain, but it appears there is some drop out between reservation and exchanges (e.g. I would have expected the reservations in Feb to have exchanged by the June update). Reservations are at their lowest since November last year. MT have yet to confirm how many exchanges are required to pay off the loan should the external finance fall through or get delayed. Although since the September 2017 target was 100, I would expect the number of exchanged to be more than this. The September 2017 target was not related to paying off the loan. Hopefully things will pick up for them.
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