nummo
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Post by nummo on Jul 22, 2019 15:13:57 GMT
Interested to hear what sort of costs would be incurred if and when a defaulted loan has to be called in.
If a property owner\developer goes bust - how much do the administrators cost (I have seen figures of £600 plus per hour quoted in the FT!) and how much would be left for investors?
Obviously nobody can know for sure and each case will be different but would be interested in any informed info people may have.
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KoR_Wraith
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Post by KoR_Wraith on Jul 22, 2019 15:46:49 GMT
It very much depends on the complexity of the case and whether the property requires any modifications prior to sale.
For a residential property requiring no work beyond reposession and marketing, I mentally allow for around £15k-£20k in administrator/legal fees.
For more complicated cases, you could easily be talking £30k+
For multi-million pound development loans, you could easily be talking £100k+
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nummo
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Post by nummo on Jul 22, 2019 17:14:00 GMT
This is great info, thanks KoR. I suspect most of these loans would fall into the complicated category, which would mean a sizeable chunk taken from the smaller loans before investors get their share.
Would love to hear any other input.
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dh1
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Post by dh1 on Jul 22, 2019 18:26:07 GMT
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nummo
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Post by nummo on Jul 23, 2019 13:42:33 GMT
dh1 Thanks for that - i was more wondering about individual defaulters rather than than a platform default but certainly makes for grim reading and another risk to consider.
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