Promotional project No. 10/10

Description

This project provides LendSecured investors with an opportunity to finance an agricultural loan, secured by a first rank mortgage on the real estate “Dimzas”, located in Sejas region. The funding target for this project is € 9 258.26, which will be used in order to refinance an existing business loan.

This project gives an opportunity to make a loan with an annual rate of 13%, LTV of 28%, loan term of 12 months, with monthly manner of interest and principal payments.

The collateral consists of an agricultural land plot in total area of 13.33 ha. The market value of the collateral estimated by a certified appraiser is € 33 000 (LTV 28%). The forest stand on the real estate is not part of the evaluation, thus the value of the real estate can be predicted even higher.

In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 18 516.52 is registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt free.

The demand for agricultural land currently in Latvia exceeds supply and 25% of farmers are forced to rent the land, as there is none available on the market.

The Borrower is an owner of a farm undertaking “Brivzemnieki” of Sejas region registered in the Latvian commercial register with No. 40001003201 and operating since 1994. The Borrower obtained the initial loan, which is now to be refinanced, in the beginning of 2019, for business development. The Borrower is engaged in mixed farming (crop and livestock production) and provision of related agricultural services.

Borrower aims to repay the loan from incoming business revenues or by sale of the part of the collateral.

Collateral

• Country Latvia, LV
• Collateral Type Land
• Collateral Value €33,000.00
• LTV 28%
• Mortgage first rank