mullet
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Post by mullet on Dec 14, 2017 10:24:13 GMT
This has been stuck unsold with an asking price of £110k for a long time now. Are they seriously going to get £95k+ at auction??? (and why is valuation still £115k if nobody is interested at £110k?)
I'm probably still in given low LTV ...but if interest rolls up again in 6 months time then it is looking a bit tight
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adrian77
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Post by adrian77 on Dec 14, 2017 10:37:53 GMT
Seems to be 3 plots here and none have sold. Also there are no services and believe me adding them can be expensive or mega-expensive depending upon the local infrastructure. Also the price per acre seems top end to me.
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Post by munchydave on Dec 14, 2017 10:38:08 GMT
This has been stuck unsold with an asking price of £110k for a long time now. Are they seriously going to get £95k+ at auction??? (and why is valuation still £115k if nobody is interested at £110k?) I'm probably still in given low LTV ...but if interest rolls up again in 6 months time then it is looking a bit tight I am out. Let me get this straight. They want to borrow our money so they can pay back our interest and at the same time increase the debt on a bit of land and the security is a property that has not yet been built. FS this is not a secured loan it is one more default waiting to happen.
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Post by d_saver on Dec 14, 2017 10:40:16 GMT
I have a chunk of this. I've just been looking at similar plots on Rightmove. Plenty of them. Pricing seems about right. Maybe a tad on the high side in comparison. Problem is, there's nothing I see that makes me want to buy this one over the others (in fact, a little of the opposite), so I'm pondering my renewal now. I'm guessing the LTV is around 50% for a rapid sale, but that's still pretty good. But then add cost of recovery, outstanding interest and the fact it is a very small loan.... Decisions, decisions...
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rogerthat
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Post by rogerthat on Dec 14, 2017 10:57:04 GMT
Hmmm..glad I popped in and read the above..haven't had much time to do DD of late...ive got 4 figures in this so its 'Take the Money' rather than 'Open the Box' ..half a loaf is always better than no bread
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copacetic
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Post by copacetic on Dec 14, 2017 11:26:11 GMT
Says a lot about valuations when lenders are hesitant about 43.5% loan to 'value' loan!
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Post by mrclondon on Dec 14, 2017 12:34:38 GMT
A direct link to the planning application is on DD Central, or search East Lindsey Planning with the reference given on the sales agent's website (link on loan assets tab). Unusually the application was made by the applicant, not by an agent (architect/planning consultant) on his behalf. Some of the plans are footed ' HOUSEPLANSdirect' , at least one 'CadTech Design', and the rest are anonymous. Gives the impression of an amateur playing at being an architect, and whilst obviously sufficient to obtain planning, this tends to imply design re-work will be needed by the eventual developer if only to create a consistent set of drawings.
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michaelc
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Post by michaelc on Aug 24, 2018 15:41:07 GMT
Well, after a flurry of repayments this week and the general continuation of a seemingly slightly less passive FS, I was thinking I should post up a "green shoots?" thread. That was until I read the latest update below.
Unfortunately, the property did not sell at auction. We have been in contact with the borrower who is still intending to sell the property and has had interest from a prospective purchaser. The borrower is also in the process of arranging a possible refinance to repay this loan while a potential sale goes through. We will continue to keep in contact with the borrower and provide updates to investors
At least have some kind of exit plan FS even if it crystallizes loss!
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arby
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Post by arby on Aug 24, 2018 15:46:11 GMT
Unfortunately selling at auction really is the only viable exit plan. Without knowing what the starting bid/reserve was it's hard to know more, but still, it's not a great sign to say the least....
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michaelc
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Post by michaelc on Aug 24, 2018 17:08:49 GMT
Might be unpopular but my view is they should stop messing around. Ask the borrower to put it through again with a much lower reserve. If he refuses, then repossess or send in admins as appropriate. We might only get 50% or 80% back that way but the percentage loss is more the longer it lingers and when you start getting tough with borrowers, they often have a habit of suddenly finding the cash from somewhere.
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adrian77
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Post by adrian77 on Aug 24, 2018 17:13:14 GMT
well heard that one before (Whitehaven) and I would wager 50-50 we will hear it again for the cinema plot...
these plots seemed to have had a guide price of £55K - if we take the current loan of £50K at 20% interest - what do we get £55k!
One for my FA league...
Gordon Bennett!
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Aug 24, 2018 19:37:17 GMT
well heard that one before (Whitehaven) and I would wager 50-50 we will hear it again for the cinema plot... these plots seemed to have had a guide price of £55K - if we take the current loan of £50K at 20% interest - what do we get £55k! One for my FA league... Gordon Bennett! Minimum auction fees amounting to 5% and new 3% land tax make Cheaposh plots not such a bargin better to sell outwith.
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arby
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Post by arby on Sept 4, 2018 12:51:55 GMT
New update: "We have spoken to the client's solicitor who has confirmed that an offer for the property has been made. We will provide further updates when we receive them" Will we ever hear what the offer is? If I said £35k, would you say higher or lower?
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Sept 5, 2018 0:50:43 GMT
New update: "We have spoken to the client's solicitor who has confirmed that an offer for the property has been made. We will provide further updates when we receive them" Will we ever hear what the offer is? If I said £35k, would you say higher or lower? I think when they get a offer they should let us know. I might consider buying at £30k
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arby
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Post by arby on Sept 5, 2018 6:58:19 GMT
New update: "We have spoken to the client's solicitor who has confirmed that an offer for the property has been made. We will provide further updates when we receive them" Will we ever hear what the offer is? If I said £35k, would you say higher or lower? I think when they get a offer they should let us know. I might consider buying at £30k I can understand not giving an exact offer, but a setting of expectation would be useful, e.g. "We expect to be able to recover the majority of the capital". Basically, any information would be useful!
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