1 to 12) Student Apartment Property Loan Interest P/A - 12% Loan value of £41,965 (value £59,950) LTV 70% Loan Term - 3 months Bid Limit - none
Collateral Rep can you confirm.... the developer is purchasing all 140 flats back, but just wants some cash from 12 of them before offloading all to another third party? The wording is slightly ambiguous.
Last Edit: Dec 16, 2017 19:26:52 GMT by mrclondon: Edit thread title
seem light on detail? What is he paying per flat...any valuation? Same borrower as bolton?
Nope, possibly a more serial P2P borrower in this sector, this was one of his first projects
Minor shareholder in Assetz Capital, Brickowner and now Welendus
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Small loans which default can cost much of the value to recover in fees, whereas a single large loan proportionately should cost far less.
If this borrower is (for instance) going to take out 140 separate small loans, in the event of default on one or two loans, will COL be defaulting and calling in the whole set, or just the individual failures?
We wouldn't want to see (in dire circumstances ) dozens of individual sets of administrators .
Is COL anticipating floating all 140 of these loans in due course? 140 x c£42K = nearly £6M (Gulp!)
The borrower previously sold all the units after developing the site, but is exercising their right to buy the units back and is in the process of completing this, they have a fund that is contracted to buy them at an uplift in price. So the fund/sale has already been agreed, which is the exit.
Our borrower is looking to release some capital from their investments prior to the fund completing on the whole development.