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Post by mrclondon on Nov 9, 2017 20:28:48 GMT
And for those of us not in the Inner Circle - shouldn't there be a redacted posting here or at least a summary of what has been discovered? I'm not in this loan but get the impression that I'm going to get used to that left out in the cold feeling. See my post that is the 4th one down on the previous page of this thread, and the linked posts mentioned therein. There has been nothing new in the public domain since then, other than the fact the property is currently being advertised for sale on rightmove (and elsewhere possibly). The administrators have filed nothing at Companies House since appointment. There will inevitably be an element of catch up by people reading posts on DD Central that relate to very old news that has been posted in redacted form on here previously.
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sarahcount
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Post by sarahcount on Nov 9, 2017 20:41:12 GMT
OK Thanks for that. All a bit confusing when one person says they have an interesting email which you're now saying just repeats information highlighted only a few posts above. If you see it from my perspective it's the not knowing that's the problem. I don't know what's being discussed on DD Central or whether anything is being discussed. I've also lost any ability I might have had to act swiftly selling/buying loans based on new revelations as I have to wait for news to percolate down to the open forum. (Anyway 2 postings in close succession nearer to the entry requirement)
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bugs4me
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Post by bugs4me on Nov 9, 2017 22:20:45 GMT
OK Thanks for that. All a bit confusing when one person says they have an interesting email which you're now saying just repeats information highlighted only a few posts above. If you see it from my perspective it's the not knowing that's the problem. I don't know what's being discussed on DD Central or whether anything is being discussed. I've also lost any ability I might have had to act swiftly selling/buying loans based on new revelations as I have to wait for news to percolate down to the open forum. (Anyway 2 postings in close succession nearer to the entry requirement) There's really nothing new so no secrets. The property is currently being marketed by a reputable estate agent. A while back it would appear that a willing buyer had been found and everything was 'rock 'n roll' according to the updates on the FS website. Then after a few positive updates that area went quiet, presumably the buyer dropped out and it's now back on the open market.
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edward
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Post by edward on Nov 9, 2017 22:23:41 GMT
your opportunity to act swiftly on this one expired over 18 months ago!
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Post by mrclondon on Jan 21, 2018 23:01:02 GMT
I have found this property on an agent's site [...] The offer price is over £500K - and the loan (before interest) is £420,000 so that leaves £80K to cover all legal and other fees - be a bit tight won't it! I really can't see any interest being paid.... £420k is just the first loan. There is also a subsequent second-ranking loan of £100k, which seems more than likely to be wiped out. And as commented on another thread, the headline pricing on the rightmove advert has been reduced from "Offers over £500,000" to "Guide price £350,000". So it looks like the second loan of £100k is indeed toast.
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michaelc
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Post by michaelc on Jan 21, 2018 23:30:57 GMT
So it was valued by a RICS t*****r for 700k. House price inflation since that valuation would take it higher. I don't have the time right now to check but suspect another 20% or 840K in today's terms but now it is unlikely to sell for above 350K.
Am I right in thinking that most normal mortgages in this country are based on valuations provided by RICS members? If so, why do the large banks rely on them if they are so inaccurate? Have any been successfully sued?
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Post by mrclondon on Jan 21, 2018 23:52:42 GMT
So it was valued by a RICS t*****r for 700k. House price inflation since that valuation would take it higher. I don't have the time right now to check but suspect another 20% or 840K in today's terms but now it is unlikely to sell for above 350K. Am I right in thinking that most normal mortgages in this country are based on valuations provided by RICS members? If so, why do the large banks rely on them if they are so inaccurate? Have any been successfully sued? But to be fair in this particular case the surveyor couldn't have been expected to know that the electricity supply to the site was not satisfactory (which was the root cause of the buisness failing, and the loan defaulting). Since then the buildings/site has been left to deteriorate now across two winters. So if it was valued at £700k knock off £150k for each of the two winters its been unoccupied, then knock off £50k (minimum) to sort the electricity supply ... and you end up at £350k. (OK I'm plucking numbers from the air, but you get the drift)
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rogerthat
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Post by rogerthat on Jan 22, 2018 0:22:59 GMT
OK Thanks for that. All a bit confusing when one person says they have an interesting email which you're now saying just repeats information highlighted only a few posts above. If you see it from my perspective it's the not knowing that's the problem. I don't know what's being discussed on DD Central or whether anything is being discussed. I've also lost any ability I might have had to act swiftly selling/buying loans based on new revelations as I have to wait for news to percolate down to the open forum. (Anyway 2 postings in close succession nearer to the entry requirement) I haven't thoroughly scoured the thread since your post Sarah but cant see anything to the effect that..you already have the required number of posts (50) to apply for access to FS DD central. p.s. Having said that, I notice that the numbers attributed to individual posts on this thread are not increasing per post...does 50 mean 50 different topics/new threads ? I'm sure that wasn't the case with me.
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bugs4me
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Post by bugs4me on Jan 22, 2018 15:06:38 GMT
So it was valued by a RICS t*****r for 700k. House price inflation since that valuation would take it higher. I don't have the time right now to check but suspect another 20% or 840K in today's terms but now it is unlikely to sell for above 350K. Am I right in thinking that most normal mortgages in this country are based on valuations provided by RICS members? If so, why do the large banks rely on them if they are so inaccurate? Have any been successfully sued? But to be fair in this particular case the surveyor couldn't have been expected to know that the electricity supply to the site was not satisfactory (which was the root cause of the buisness failing, and the loan defaulting). Since then the buildings/site has been left to deteriorate now across two winters. So if it was valued at £700k knock off £150k for each of the two winters its been unoccupied, then knock off £50k (minimum) to sort the electricity supply ... and you end up at £350k. (OK I'm plucking numbers from the air, but you get the drift) Re-reading the valuers report there was mention of water leakage plus damp so after two unoccupied winters the 350k may even be optimistic. If it wasn't listed you'd probably be looking at a building plot. And don't get me started on the endless updates for this loan!!!!!
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Liz
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Post by Liz on Jan 22, 2018 21:27:56 GMT
The latest update is not positive and receiver costs continue to mount. This is a bad situation.
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mikes1531
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Post by mikes1531 on Jan 22, 2018 22:16:03 GMT
p.s. Having said that, I notice that the numbers attributed to individual posts on this thread are not increasing per post...does 50 mean 50 different topics/new threads ? I'm sure that wasn't the case with me. rogerthat: I think you're misinterpreting the Number of Posts shown. AIUI, what you see is current at the time you load the page. So if you ignore pages you might have loaded days ago, every post by a given member will show the same post count for them, and that is their current count.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 26, 2018 18:29:20 GMT
I just noticed this gem in the VR:- "3) The property is long leasehold at a material ground rent payable to the freeholder. Lenders should be aware that in the event of foreclosure the ground rent of £18,750 pa remains payable to the freeholder. "
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adrian77
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Post by adrian77 on Jan 26, 2018 19:59:35 GMT
you what !
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mikes1531
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Post by mikes1531 on Jan 27, 2018 23:19:08 GMT
So when did the borrower stop making the freehold rent payments. If we presume that happened about the time the FS loan matured then that's another £38k or so that would have to be paid out of the security sale proceeds before anything could be paid to FS investors. If nothing has been paid since FS originated the loan, the total arrears would be about £9k higher. Then there are the penalties for failure to pay the rent which probably are in the lease agreement.
I suppose the freeholder could force a foreclosure for non-payment of the lease payments, but if I were them I certainly wouldn't. I'd sit back and leave it to FS to arrange and pay for the receivership and sale knowing -- well, I presume I'd know -- that what's owing to me, including all those lovely penalties, would outrank any loan charged against the property so they'd be bound to be paid even if the property is sold for a pittance.
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dufus
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Post by dufus on Feb 6, 2018 18:38:44 GMT
I just accidentally happened upon your discussion about the South Wales hotel.
The fact that the surveyor's valuation could have been so far removed from the actual market value has made me lose faith in all the valuations on P2P websites. I do not believe that the managers of Funding Secure or any of these other websites actually read the surveyor's report thoroughly. If anybody with common sense would check the Surveyor's comparables and assumptions then they would be able to see if he/she made any glaring errors.
Why was it that FS did not notify the investors that all the cottages had been sold? Why did FS put an update where they said the hotel had risen in value from £750k to £1.1m? Why did their investment page mislead investors and state that the LTV was 14%?
There was a similar case of a property called Adrian Compton on Funding Knight's website, where they were only able to sell it within 6 months of the original valuation for 50% of that valuation. When I read the surveyor's report, I noticed that he had valued it on the basis of a rental income of £30k per year, but had failed to include in his calculation that there was a Ground Rent of £15k per year. A real schoolboy error!
I already asked FS about suing the valuer for damages, and they make an excuse that valuers have so many disclaimers of liability in their reports that it is virtually impossible to sue them for negligence. Really! So they can take their fees for very little work and have no responsibility for the valuations they issue!
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