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Post by sannytwist on Jun 27, 2017 15:48:21 GMT
You are correct, l was wondering myself. Didn't think about it until your message. Ure £47k cleared really quickly !
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jlend
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Post by jlend on Jul 28, 2017 8:47:13 GMT
Does anyone know if a Tranche 3 is planned for this loan prior to completion ?
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johni
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Post by johni on Jul 28, 2017 9:48:04 GMT
Does anyone know if a Tranche 3 is planned for this loan prior to completion ? Development costs of £700000 we're required only, £150000 drawndown so far, so yes it looks very likely.
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Post by MoneyThing on Jul 28, 2017 10:09:45 GMT
Morning. Will likely be announcing a further £160k drawdown today (to go live Monday). Regards, Ed.
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jlend
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Post by jlend on Jul 28, 2017 10:42:16 GMT
Morning. Will likely be announcing a further £160k drawdown today (to go live Monday). Regards, Ed. Thanks Do we know if the plan is still to sell thsee houses as leasehold rather than freehold ?
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elliotn
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Post by elliotn on Jul 30, 2017 0:43:35 GMT
Morning. Will likely be announcing a further £160k drawdown today (to go live Monday). Regards, Ed. Hi MoneyThing , the VR asked us to get a guarantee that costs would remain fixed at c700k. As no developer profit had been included they chose c400k (without confirmation) but that does NOT include our finance charges or selling costs. Is it still your opinion developer profit (& the subsequent impact on residual GDV) is sufficient/sustainable for practical completion and sales.
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Post by MoneyThing on Jul 30, 2017 12:49:24 GMT
Morning. Will likely be announcing a further £160k drawdown today (to go live Monday). Regards, Ed. Hi MoneyThing , the VR asked us to get a guarantee that costs would remain fixed at c700k. As no developer profit had been included they chose c400k (without confirmation) but that does NOT include our finance charges or selling costs. Is it still your opinion developer profit (& the subsequent impact on residual GDV) is sufficient/sustainable for practical completion and sales. Afternoon elliottm, Yes, in my opinion (and all indicators and evidence thus far), suggests that completion & sales is achievable based on the numbers MT have provided. As a separate note on this loan, the borrower may well look to sell the units freehold. Whilst they are comfortable that they could be sold as leaseholds (since the contracts would be linked with RPI), they are mindful that there may well be increased difficulty for homebuyers obtaining mortgages for leaseholds for houses. They are however still reviewing this as both their sales agent and valuers are suggesting that there would be no problem selling these units as leaseholds (on sensible contracts). Kind regards, Ed
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Post by mrclondon on Jul 30, 2017 13:46:04 GMT
As a separate note on this loan, the borrower may well look to sell the units freehold. Whilst they are comfortable that they could be sold as leaseholds (since the contracts would be linked with RPI), they are mindful that there may well be increased difficulty for homebuyers obtaining mortgages for leaseholds for houses. They are however still reviewing this as both their sales agent and valuers are suggesting that there would be no problem selling these units as leaseholds (on sensible contracts). Kind regards, Ed Given the development is scheduled for completion at the end of this year, the ability of the developer to sell these properties as leasehold more hinges on whether the necessary legislative changes to ban leasehold houses will be implemented via a statutory instrument during the autumn or whether primary legislation is needed which will push the implementation back, probably to post brexit. The comments from the "sales agent and valuers" are probably predicated on low public perception of the issue (and assisted by the historical norm in the North West for leasehold houses).
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jlend
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Post by jlend on Jul 30, 2017 15:18:52 GMT
Hi MoneyThing , the VR asked us to get a guarantee that costs would remain fixed at c700k. As no developer profit had been included they chose c400k (without confirmation) but that does NOT include our finance charges or selling costs. Is it still your opinion developer profit (& the subsequent impact on residual GDV) is sufficient/sustainable for practical completion and sales. Afternoon elliottm, Yes, in my opinion (and all indicators and evidence thus far), suggests that completion & sales is achievable based on the numbers MT have provided. As a separate note on this loan, the borrower may well look to sell the units freehold. Whilst they are comfortable that they could be sold as leaseholds (since the contracts would be linked with RPI), they are mindful that there may well be increased difficulty for homebuyers obtaining mortgages for leaseholds for houses. They are however still reviewing this as both their sales agent and valuers are suggesting that there would be no problem selling these units as leaseholds (on sensible contracts). Kind regards, Ed Good to hear they are thinking about selling the properties freehold given the large developers have already stopped selling leasehold houses. Feels like the right thing to do, not only because of the annual fees but also because of the potential issues should the freehold be sold onto another party in the future and the potential costs of purchasing the freehold in the future. Retrospective legislation has been passed in other countries regarding leasholds so I wouldn't be surprised if there was something done on existing leaseholds
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rgog
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Post by rgog on Jul 31, 2017 11:09:27 GMT
Jlend, retrospective legislation has always been looked on very askance in this country, so I doubt that will happen. Possibly some more forward facing legislation regarding selling on the freehold? But I do not know what.
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Post by sannytwist on Jul 31, 2017 23:10:41 GMT
As a side note Bollington 1st trance is going fast..... this loan on the SM has been picking up speed. I think people are choosing to invest in Bollington 1st trance rather than the newer 3rd trance.
Only last week this loan was stuck at £200k , now already £110k has gone and seems like more interest.
I'm so surprised lol.
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archie
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Post by archie on Aug 1, 2017 5:39:26 GMT
As a side note Bollington 1st trance is going fast..... this loan on the SM has been picking up speed. I think people are choosing to invest in Bollington 1st tranche rather than the newer 3rd tranche. Only last week this loan was stuck at £200k , now already £110k has gone and seems like more interest. I'm so surprised lol. Forum theory was someone cancelled a large sale to reduce Bollington 1st tranche although there is some buying too. I will pick up Bollington 3rd when the AE money repays
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jlend
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Post by jlend on Aug 1, 2017 7:23:32 GMT
As a side note Bollington 1st trance is going fast..... this loan on the SM has been picking up speed. I think people are choosing to invest in Bollington 1st tranche rather than the newer 3rd tranche. Only last week this loan was stuck at £200k , now already £110k has gone and seems like more interest. I'm so surprised lol. Forum theory was someone cancelled a large sale to reduce Bollington 1st tranche although there is some buying too. I will pick up Bollington 3rd when the AE money repays I won't be buying while borrower is still considering selling the properties leasehold at the same time as appreciating this may well cause borrowers issues. I appreciate I am in the minority and most lenders don't have an issue with this.
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pom
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Post by pom on Aug 1, 2017 8:27:57 GMT
As a side note Bollington 1st trance is going fast..... this loan on the SM has been picking up speed. I think people are choosing to invest in Bollington 1st tranche rather than the newer 3rd tranche. Only last week this loan was stuck at £200k , now already £110k has gone and seems like more interest. I'm so surprised lol. Forum theory was someone cancelled a large sale to reduce Bollington 1st tranche although there is some buying too. I will pick up Bollington 3rd when the AE money repays You mean you hope you will....it will be interesting to see if there's *anything* left when they do and to work out where the excess cash all goes..
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elliotn
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Post by elliotn on Aug 1, 2017 14:59:46 GMT
Please could I ask the question what makes Bollington an attractive loan to hold in your own portfolio's? I guess the upsides are - location, residential, project funding for completion in place, all units originally sold with deposits, latest VR progress report, MT confirmation that fixed cost build still deemed viable. Now whether that makes it 'attractive' against the downsides or just offers a little bit more diversification is another matter.
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