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Bridge Farm Mortgage
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Message 1.Â
Posted by Scarlett the Harlot (U14540168) on Tuesday, 13th September 2011
Hi Tayler
Are Helen and Tom co-mortgagees with Tony and Pat or is the mortgage just in Tony and Pat's names?
Also, are Helen and Tom full partners in the business i.e. is there a business agreement signed by Pat, Tony, Helen and Tom?
Thank you.
Scarlett xx -
Message 2
Posted by Tayler Cresswell - Host (U14232848) on Wednesday, 14th September 2011
Hi Scarlett
I'll see what I can find out : )
(I *think* it's just Pat and Tony's mortgage but could be wrong)
Tayler -
Message 3
Posted by Scarlett the Harlot (U14540168) on Thursday, 15th September 2011
I think the same Tayler but I could well be wrong!
Scarlett xx -
Message 4
Posted by JustJanie - Fairweather Strider (U10822512) on Thursday, 15th September 2011
I'd also love to know if it was a 100% mortgage or were they able to put anything down. And would they end up with anything after paying off the mortgage if they were to sell up.
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Message 5
Posted by Scarlett the Harlot (U14540168) on Thursday, 15th September 2011
You are so cruel Janie but it is a delicious thought ...
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Message 6
Posted by sunnysakasredux (U14979019) on Thursday, 15th September 2011
Well Janiexx I have been told by one of the ladies (she likes to be called a lady so I am not being sexist) that Pat was made to cash in her pension to put towards buying the farm. Is this true Tayler?
My lady also said Hellin and Tom cared not a bit about this and were gleeful that they were going to be millionaires.
I showed them the heels digging in post and they loved your story about galloping around a corner being told not to graze Janiexx
Anyway Tayler could you tell the s/ws the ladies would like Hellin to get a job. I have to ask 'cos they have given me a going away present. I will miss them 'cos they keep me up to date with what is going on.
I don't think Pat and Tony would have got a 100% mortgage at their age.It is impossible to get one at any age now.
Scarlett sometimes you have to be cruel to be kind. I think someone should start a dance class in Ambridge relieve the strain.
xxxxxx -
Message 7
Posted by JustJanie - Fairweather Strider (U10822512) on Thursday, 15th September 2011
hey, sunnyxxx ... yes, galloping round that muddy corner saying moddable things to myself, never forget it!
I remember Pat cashing in her pension and I thought at the time that it was for the down payment.
I could be wrong, but I don't think age matters when you get a mortgage - or used not to - IF you had a big enough down payment, say 25 per cent, and property prices were buoyant. If the lender is satisfied the borrower can make the payments at least for the next 5 years or so, they'd assume that in the event of your THEN not being able to make the payments (or dying) that the property would be sold and the mortgage paid off.
It's only if there's a very small or no down payment and the price of property declines that there's big trouble for both borrower and lender which is what has happened recently.
I really only know how these things work in Canada, though.
That's why I asked if there was a down payment. If they put 200 grand down (say, Pat's pension) then if Bridge Farm has increased in value since they bought it (not likely, I suppose in the present market) at least they would get their original 200 K back plus whatever profit they make.
But I don't know how easy it is to sell a farm nowadays. And could they get it re-zoned for residential and sell it at a huge profit to a developer? -
Message 8
Posted by Scarlett the Harlot (U14540168) on Friday, 16th September 2011
A dance class in Ambridge?
Maybe salsa or zumba classes?
Might cheer Clarrie up a tad. -
Message 9
Posted by Spartacus (U38364) on Friday, 16th September 2011
Careful. Remember, that's how Moike and Vickoi met.
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Message 10
Posted by cath (U2234232) on Friday, 16th September 2011
<>And could they get it re-zoned for residential and sell it at a huge profit to a developer?<
Very unlikely, fading to near impossible JJ. But farmland is an attractive investment especially for city boys (though UBS staff are not likely to be in the running this time round) and so it would sell.
Apart from any down payment they may have made, they have inbuilt equity because they already owned an interest in the land through their tenancy. So they paid less for the freehold than someone would who bought the farm outright (ie freehold and tenancy combine).
They must have started off with a good £200+k equity and land prices haven't gone down since then so they'd be able to buy themselves a decent enough little house though there might not be room to put up any parasitic offspring which would only be a Good Thing. -
Message 11
Posted by Scarlett the Harlot (U14540168) on Friday, 16th September 2011
Any solution which leaves the Hell Queen and Horrid Henry to fend for themselves is absolutely fine and dandy by me.
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Message 12
Posted by JustJanie - Fairweather Strider (U10822512) on Friday, 16th September 2011
<< They must have started off with a good £200+k equity and land prices haven't gone down >>
Good. It might even be a bit more than that because the Â鶹¹ÙÍøÊ×Ò³Èë¿Ú synopsis says it was valued at 1.2 million though apparently Lowfield says only 1 mill. Anyway, good.
I'm convinced there was a down payment because what was Pat's pension for, otherwise? And also, is it usual to lend the full amount? I shouldn't have thought so.
Perhaps we could add to the list of questions a confirmation of the amount Bridge Farm was valued at when they bought it.
<< so they'd be able to buy themselves a decent enough little house >>
Again, good. They'd have to have something to live on, of course. -
Message 13
Posted by cath (U2234232) on Friday, 16th September 2011
>I'm convinced there was a down payment because what was Pat's pension for, otherwise? And also, is it usual to lend the full amount? <
I think she did cash it in to reduce the amount they needed to borrow. The full amount of the purchase price wasn't the full value of the property so no reason not to lend them the whole amount so long as they could manage the repayments. -
Message 14
Posted by JustJanie - Fairweather Strider (U10822512) on Friday, 16th September 2011
Thanks, cath, but I'm a bit confused now. The property was valued at 1 million, possibly more. They bought it for £825K. You're saying they COULD have borrowed the entire £825K as it's less than the market value, OK, I understand that.
But are you saying they used Pat's pension to reduce the mortgage to less than £825K? Because that is what I was thinking. Of course, I have no idea how much her pension was worth. -
Message 15
Posted by Tayler Cresswell - Host (U14232848) on Friday, 16th September 2011
Hi all
Pat and Tony are the mortgagees. Also both Tom and Helen can sign cheques on behalf of the business.
I've gone back to ask about any down payment on the farm and whether that was Pat's pension. Will keep you posted!
Tayler -
Message 16
Posted by Scarlett the Harlot (U14540168) on Friday, 16th September 2011
Aw thanks Tayler for your trouble.
Scarlett xxx -
Message 17
Posted by JustJanie - Fairweather Strider (U10822512) on Friday, 16th September 2011
Yes, thanks from me too, Tayler.
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Message 18
Posted by cath (U2234232) on Saturday, 17th September 2011
Tayler, thanks for that. It sounds as though Pat and Tony have gone into partnership with Helen and Tom if they can sign the business cheques while the land remains outside the business assets and is personally owned by Pat and Tony. Is that right? Or have they set up a company for the business (the land still outside) of which Helen and Tom are are directors? What confuses me about this is that Helen receives maternity pay which is sopmething employees get rather than the self-employed.
JJ, sorry to confuse you. You asked if Pat & Tony could have borrowed the full amount they needed without a down payment. The answer is likely to be yes because by buying the freehold they effectively converted their interest in the tenancy to equity. So if they defaulted the lender knows there's a cushion of equity held by the owners so the lender's loan is likely to be repaid in full, even in a fire sale of the farm.
However it seems that Pat and Tony couldn't actually afford the mortgage payments if they borrowed the full amount so they cashed in Pat's pension to reduce the borrowing and the associated interest payments. -
Message 19
Posted by Spartacus (U38364) on Saturday, 17th September 2011
My speculation is that they will come to the brink, and have Brine offer to buy it out from under them, throw away the organic status and extend Home Farm onto the land for one of these intensive 1000-cow dairy developments. Much hilarity will ensue.
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Message 20
Posted by Mabel Bagshawe (U2222589) on Saturday, 17th September 2011
< It sounds as though Pat and Tony have gone into partnership with Helen and Tom if they can sign the business cheques >
Not necessarily - couldn't Tom and Helen be classed as employees of Bridge Farm Ltd with cheque signing rights? -
Message 21
Posted by JustJanie - Fairweather Strider (U10822512) on Saturday, 17th September 2011
<< However it seems that Pat and Tony couldn't actually afford the mortgage payments if they borrowed the full amount so they cashed in Pat's pension to reduce the borrowing and the associated interest payments. >>
Right, cath, thanks. That was what I was thinking. I hope we get an answer.
The important point, I suppose, is that at the moment they do not have the income to make the payments. Didn't they also talk about increasing the overdraft a while back (and I'm sure they said ''overdraft' not , 'add to the mortgage') to pay for either the poo lagoon or the new lighting system? If so, that's a huge amount of debt. -
Message 22
Posted by Scarlett the Harlot (U14942477) on Sunday, 18th September 2011
It is a huge amount of debt Janie.
I rather suspect that they will have to sell up and as another poster says above it could be Brine that buys them out.
Coo that will be fun and games won't it!!
Never mind Helen I am sure you will enjoy living in a scummy one bedroom flat in Meadow Rise on benefits love.
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