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Post by mrclondon on Dec 9, 2017 12:50:11 GMT
A direct link to the planning application is on DD Central, for those without access search Liverpool Planning with the reference from the certificate attached to the loan. Condition 1 on the decision notice document states development is to start within 3 years ... which expires 9th March 2018 unless work has already started. There are no obvious new planning application(s) to discharge conditions that need discharging before development can begin. fundingsecure do you have any evidence that development has "started" or will be "started" within the next 90 days ? |
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j1
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Post by j1 on Dec 9, 2017 14:54:33 GMT
Good spot. Funding secure, any reason why you couldn't save us all some effort and have added this to the description?
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michaelc
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Post by michaelc on Dec 10, 2017 14:37:42 GMT
Good spot. Funding secure, any reason why you couldn't save us all some effort and have added this to the description? Because it would make the loan look less attractive?
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paulb
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Post by paulb on Oct 2, 2018 13:47:21 GMT
It looks like the PP has lapsed on the property this loan is secured against, so FS are refusing to renew unless it's restored - to the developers on here: how easy/likely is this? It looks like the loan wasn't a development loan for the site, so hopefully the borrower can repay if necessary - if not, how much will the valuation (hence LTV) be affected by loss of PP? I did read the valuation report, which was based upon having the PP, but I didn't see mention of how much of the value was added by the PP.
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Post by mrclondon on Oct 2, 2018 15:13:15 GMT
It looks like the PP has lapsed on the property this loan is secured against, so FS are refusing to renew unless it's restored - to the developers on here: how easy/likely is this? It looks like the loan wasn't a development loan for the site, so hopefully the borrower can repay if necessary - if not, how much will the valuation (hence LTV) be affected by loss of PP? I did read the valuation report, which was based upon having the PP, but I didn't see mention of how much of the value was added by the PP. There are no easy answers to the questions you raise.
We know that the expired planning permission was for C2 - Residential Institution usage (the underlying usage required for a Nursing home), and that VR Section 5 states the site area to be c. 0.28 hectare (0.7 acre). The valuation basis was residual value based on the number of rooms in the proposed nursing home. (And with expired planning a residual value valuation is even less relevant than usual)
shows consented residential land for Liverpool council area at £815k / hectare and brownfield land in the North West at £400k / hectare which implies that 0.28 hectares would have a typical value of between £110k and £230k depending on the permissions.
A plot of land that has expired permission would normally be valued including some "hope value" that similiar permission would be granted again.
Care/nursing homes are not especially profitable, and there are concerns regarding the cost of labour post Brexit.
If this plot of land had to be disposed of in a fire sale, there seems to be little reason to suppose a land bank purchaser (as opposed to a Nursing Home Group) would pay a premium over typical land values for the plot.
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baldpate
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Post by baldpate on Oct 2, 2018 15:34:20 GMT
And yet FS are now offering a large supplementary loan against the same security property at what is claimed to be an LTV of 38%, on the basis of a new, fantasy optimistic valuation of £2.5M !
DELETED BY baldpate - sorry, wrong loan!!
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adrian77
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Post by adrian77 on Oct 2, 2018 15:39:18 GMT
totally agree with the above 2 posts - only thing I would add is that I think it is reasonable to think the UK property market will be very slow whilst Brexit is finalised. Thus for a quick sale the land value may be less than predicted.
Sleeper alert - I have a nibble in this one but solely on the basis it will be flipped.
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adrian77
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Post by adrian77 on Oct 2, 2018 15:57:58 GMT
update to my last post - yet again there is no land survey - to me this is crazy. An early mistake I made was to buy a plot without getting this done first - the plot was a former Victorian rubbish dump and only 25% could be built upon.
I immediately flipped the plot and luckily covered my expenses - good job it was not bought on borrowed money at 2% pcm!
Once bitten twice shy - hello FS!
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arby
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Post by arby on Oct 2, 2018 16:09:24 GMT
update to my last post - yet again there is no land survey - to me this is crazy. An early mistake I made was to buy a plot without getting this done first - the plot was a former Victorian rubbish dump and only 25% could be built upon. I immediately flipped the plot and luckily covered my expenses - good job it was not bought on borrowed money at 2% pcm! Once bitten twice shy - hello FS! Always good to admit and then learn from a mistake! As others have alluded to- I'm a bit surprised this loan has arrived with such an increase in valuation considering the prior ranking loan is coming up to a year overdue.
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paulb
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Post by paulb on Oct 2, 2018 18:44:00 GMT
Thanks mrclondon for your thoughts. I had hoped someone more knowledgeable than me could provide a little optimism, but it would appear not - the values you mention are around half of the loan value. On the plus side, 6 months of interest have been received, so we should at least get 6.5% back..... At least this is a single loan against a first charge, so no real chance of a 100% loss. |
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trium
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Post by trium on Nov 13, 2018 20:29:46 GMT
Another update today - seems we'll be waiting a while. Don't understand why the interest received in June cannot in the interim be paid over to those it belongs to.
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adrian77
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Post by adrian77 on Nov 14, 2018 10:19:20 GMT
Well that's not going to happen is it!
As I see it the applicant has not even submitted the planning yet so I guess approval won't be until mid 2019 at the earliest.
This one is already 5 months late and I am puzzled as to what has actually happened to the repaid interest.
This plot is surrounded by developments - so there may well be problems (not insurmountable but hassle and expense) with digging the foundations due to services running through the plot. The original developers may have sited the bowling green there for a reason.
£450K at 20% over a year is £90K
Far too many late running loans in my opinion - not least the llandudno hotel where I read
Again this one is 9 months late so I doubt a final sale before 2019 - bit puzzled as to how much equity is left in this one and whether it will be a 100% recovery...
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trium
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Post by trium on Sept 27, 2019 15:25:08 GMT
Update on site - "in discussion with potential buyer" etc
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adrian77
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Post by adrian77 on Sept 27, 2019 17:14:16 GMT
just seen the FS DD on this one seems to be an "old favourite" property superstar involved with this an 2 other linked developments - here we go again...
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p2ploser
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Post by p2ploser on Sept 28, 2019 10:17:45 GMT
I’m confused by this update as it states that the option the are progressing is better than appointing receivers however the previous update stated that they had appointed receivers?
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