Update from the originator:
It was extremely disappointing to learn that the level 5 lockdown will now be extended to the 5th of April as the government announced yesterday. Construction, like many business sectors, will feel the impact of this recent decision. The positive news for the sector is that essential construction remains open, albeit with restrictions.
The originator's lending managers are working closely with the borrowers and site monitors throughout the lockdown and the originator is pleased to report that the vast majority of the loans will remain on schedule. However, the site closures as well as restrictions on sites that remain open will inevitably lead to some delays. In the event of a delay, interest will continue to accrue for lenders and the originator would ask lenders to bear with the originator as the originator will allow borrowers some extra time to repay their loans.
The site is closed until the 5th of April.
As lenders are aware, the majority of the houses in this development are being sold on the open market, accordingly, this site remains closed during the lockdown. The build and sales program were well ahead of schedule prior to lockdown, with only 3 houses of the original 69 houses remaining for sale. The originator is confident in the ability of the Borrower to finish out the development, however as this site will remain closed until the construction lockdown ends, this may affect their ability to repay the loan by the repayment date of 18th November next. The originator will continue to monitor this project and will advise lenders of any potential delays as the year progresses.
Update from the developer:
The vast majority of the units on this site are being sold on the open market, accordingly, the site will be closed during the lockdown. Sales have been very strong on-site, with only 10 of the original 69 units remaining for sale. The rest have either been sold or are in various stages of completion. 13 units were handed over to their new owners in the week prior to Christmas. The view of the Borrower is that the site being closed for January, one of the worst weather months of the year, will have little impact on the completion of the development.