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Post by badboyyardy on Sept 14, 2017 11:32:24 GMT
Trying to do my DD like a good investor - given actually been given a decent headsup.
Soooooo buildings and land bought at £530k at auction - but borrower has sub sold most of the land and just the buildings and 6 acres of land are still worth £525k. Is this wishful valuation again? Any thoughts
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oldgrumpy
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Post by oldgrumpy on Sept 14, 2017 11:38:08 GMT
Very likely. It's all done with FS's full knowledge to ensure the borrower can have 100%+ of what he paid, or the real value.
If FS acted as a pawn lender (which they do, even with property development in which they have little or no expertise) ) but with its own money, they would do their own valuations and they would be far more realistic.
This applies (probably) to all platforms, not just FS. As a rule of thumb, deduct 25% from most valuations and you will be close (in most cases) to reality.
Only my insignificant opinion, of course.
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bfish
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Post by bfish on Sept 14, 2017 11:40:52 GMT
Have just emailed the agents to seek assurance.
Surely if the ~21 acres sold must reduce the residual by £100k+ !!?
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Post by badboyyardy on Sept 14, 2017 11:47:04 GMT
Have just emailed the agents to seek assurance. Surely if the ~21 acres sold must reduce the residual by £100k+ !!? This was my thinking as well - especially as plot 1A at same size had guide price of £140k
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Post by mrclondon on Sept 14, 2017 11:55:32 GMT
From page 5 of glossy auction brochure pdf: Bedroom 2: [...] ceiling partially collapsed Family Bathroom: [...] ceiling partially collapsed Also note the family bathroom is approached through bedroom 4. No mention of a shower. So not immediately liveable in may be a fair conclusion. As oldgrumpy has already implied, firesale value in current condition is very likely to be a lot lower than the £525k stated (irrespective of the deduction or lack thereof for the missing land) FWIW: my assumption is the auction price for the LOT 1 is being assumed as a distressed sale value (i.e. well below OMV), and the £525k is the estimated OMV for the reduced land size (i.e. already reflects the reduction from what the LOT 1 OMV would have been) |
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Post by angrykittens on Sept 14, 2017 11:58:43 GMT
Well it's OK they have a very official email from an MRICS associate so it must be true! Starting to think ozboy was right all along  |
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rs
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Post by rs on Sept 14, 2017 12:03:20 GMT
I can see this loan funding very quickly as agent valuation seems very logical considering the area is full of activity for future developments!
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 14, 2017 12:05:23 GMT
Puzzled at where FS get the £530k from? According to the auction site the sale price was £740k, if we assume that this included the extra land at £140k, that would be £600k (but its not clear that it does include the £140k) Have FS already deducted the forward sale of the attached land when quoting the auction price?
Edit Its a sale by the local council as part of a disposal of non-core assets so not a particularly distressed sale and its politically controversial so would expect them to have tried to achieve a reasonable price around OMV.
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rs
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Post by rs on Sept 14, 2017 12:19:55 GMT
Puzzled at where FS get the £530k from? According to the auction site the sale price was £740k, if we assume that this included the extra land at £140k, that would be £600k (but its not clear that it does include the £140k) Have FS already deducted the forward sale of the attached land when quoting the auction price? Edit Its a sale by the local council as part of a disposal of non-core assets so not a particularly distressed sale and its politically controversial so would expect them to have tried to achieve a reasonable price around OMV. Quick quick rumble rumble get DD done as only 2 hours and 40 minutes until loan goes line and funds 100% in 2 mins.
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james21
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Post by james21 on Sept 14, 2017 13:29:44 GMT
Peeps are not interested in the research only in the 13% return
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locutus
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Post by locutus on Sept 14, 2017 13:39:33 GMT
Puzzled at where FS get the £530k from? According to the auction site the sale price was £740k, if we assume that this included the extra land at £140k, that would be £600k (but its not clear that it does include the £140k) Have FS already deducted the forward sale of the attached land when quoting the auction price? Edit Its a sale by the local council as part of a disposal of non-core assets so not a particularly distressed sale and its politically controversial so would expect them to have tried to achieve a reasonable price around OMV. Update to the loan on FS:
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rs
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Post by rs on Sept 14, 2017 13:50:34 GMT
Puzzled at where FS get the £530k from? According to the auction site the sale price was £740k, if we assume that this included the extra land at £140k, that would be £600k (but its not clear that it does include the £140k) Have FS already deducted the forward sale of the attached land when quoting the auction price? Edit Its a sale by the local council as part of a disposal of non-core assets so not a particularly distressed sale and its politically controversial so would expect them to have tried to achieve a reasonable price around OMV. Update to the loan on FS:
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rs
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Post by rs on Sept 14, 2017 13:51:18 GMT
1 hr & 10 mins to go. This loan will be funded in minutes so surprised there's no limit set by FS.
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Post by badboyyardy on Sept 14, 2017 13:53:24 GMT
Puzzled at where FS get the £530k from? According to the auction site the sale price was £740k, if we assume that this included the extra land at £140k, that would be £600k (but its not clear that it does include the £140k) Have FS already deducted the forward sale of the attached land when quoting the auction price? Edit Its a sale by the local council as part of a disposal of non-core assets so not a particularly distressed sale and its politically controversial so would expect them to have tried to achieve a reasonable price around OMV. Update to the loan on FS: So another lala land valuation - actually this was all a ploy to sow some seeds of doubt so I get get my 6 figures in before it all goes in 5 secs regardless...... Cunning plan Baldrick
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Sept 14, 2017 14:06:50 GMT
1 hr & 10 mins to go. This loan will be funded in minutes so surprised there's no limit set by FS. It's unlikely to fill in 2 mins, because there are no bonuses. In fact, I can't remember a loan of this size without bonuses. If it does get swallowed up quickly, then we need more loans, otherwise FS might start reducing lender rates.
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