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Post by overthehill on Apr 14, 2020 20:24:16 GMT
3 properties in WESTON RHYN (the thread title is starting to annoy me)
There is something odd about the update, it reads like it is referring to one property when there are 3 houses ? The updates suggest one property was nearing completion and possibly the supplemental loan was supposed to be spent on finishing the other 2 properties which never happened.
I might believe the valuation is for one property if it didn't look like you get a hell of a lot of house in that area for 500k. Could be that we've been led down the garden path again with pie in sky valuations as the build progressed with 2 out of 3 properties well behind.
What's the chances of google maps view being recent?!
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arby
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Post by arby on Apr 14, 2020 22:15:07 GMT
3 properties in WESTON RHYN (the thread title is starting to annoy me)
There is something odd about the update, it reads like it is referring to one property when there are 3 houses ? The updates suggest one property was nearing completion and possibly the supplemental loan was supposed to be spent on finishing the other 2 properties which never happened.
I might believe the valuation is for one property if it didn't look like you get a hell of a lot of house in that area for 500k. Could be that we've been led down the garden path again with pie in sky valuations as the build progressed with 2 out of 3 properties well behind.
What's the chances of google maps view being recent?!
Street View just shows a nice field! However, said field with planning permission was valued at £400k at the outset, so £500k for land with 3 mostly complete houses does feel cheap!
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rogerthat
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Post by rogerthat on Apr 14, 2020 22:57:50 GMT
3 properties in WESTON RHYN (the thread title is starting to annoy me)
There is something odd about the update, it reads like it is referring to one property when there are 3 houses ? The updates suggest one property was nearing completion and possibly the supplemental loan was supposed to be spent on finishing the other 2 properties which never happened.
I might believe the valuation is for one property if it didn't look like you get a hell of a lot of house in that area for 500k. Could be that we've been led down the garden path again with pie in sky valuations as the build progressed with 2 out of 3 properties well behind.
What's the chances of google maps view being recent?!
Street View just shows a nice field! However, said field with planning permission was valued at £400k at the outset, so £500k for land with 3 mostly complete houses does feel cheap! Well it is Easter
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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 Apr 14, 2020 23:09:38 GMT
Street View just shows a nice field! However, said field with planning permission was valued at £400k at the outset, so £500k for land with 3 mostly complete houses does feel cheap! Well it is Easter You mean otherwise the field would be full of rabbits
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pfffill
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Post by pfffill on Apr 15, 2020 0:10:26 GMT
Don't know about Easter, but all his Christmases have come at once for this crook.
We can only hope that there will be some interest at £530k to drive the eventual sale price up, out of the soiled hands of the borrower.
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Brainer
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Post by Brainer on Apr 15, 2020 1:20:54 GMT
Houses were supposed to be worth £670k each on completion and given "the first property is essentially complete", I'd agree the figures being mooted are far too low.
I'd be interested to see what the QS report mentioned in the 28/08/19 update said about the work required to complete. From the minutes of the first CC meeting:
3 Where there are part complete developments the Administrators can look for bridging loans on appropriate terms but without being required to do so and without taking on any personal liability for such funding arrangements.
Is this still the case, Mucho P2P? If the GDV of £2million is even remotely close then we could spend over a £1million finishing these and still get a better outcome than the prices mentioned.
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adrian77
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Post by adrian77 on Apr 15, 2020 7:17:38 GMT
I agree there is something wrong here - I have bought some bargains (and some dogs) in my time but never anything approaching 3 houses like this for £550K. True there may be a mega problem with the construction, council demand for a new road etc etc but even if the remaining 2 houses need £100K each spending on them £550K still seems incredibly cheap to me. We should never, never ever have been in this situation if this project was run properly
Thinking about this 5% FS fee - surely for this and other appallingly managed loans we can lay a claim against this money as FS ,in my non-legal opinion, have totally and utterly failed in their obligations to us.
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Mucho P2P
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Post by Mucho P2P on Apr 15, 2020 23:32:37 GMT
Houses were supposed to be worth £670k each on completion and given "the first property is essentially complete", I'd agree the figures being mooted are far too low.
I'd be interested to see what the QS report mentioned in the 28/08/19 update said about the work required to complete. From the minutes of the first CC meeting:
3 Where there are part complete developments the Administrators can look for bridging loans on appropriate terms but without being required to do so and without taking on any personal liability for such funding arrangements.
Is this still the case, Mucho P2P ? If the GDV of £2million is even remotely close then we could spend over a £1million finishing these and still get a better outcome than the prices mentioned. It does not seem (to the best of my knowledge) that the administrators are considering many bridging loans at all. The get out clause was "without being required to do so". The only practical and legally viable way to finish the property would be for those lenders that wish to finish the property to put in a full and final offer to the administrators, so that the administrators can repay back the lenders who do not wish to be part of the completion project their share without further participation. The remaining lenders who purchased the property will then own the property outright and will then be able to complete and market the property on their own terms. I have not seen the latest valuation report, nor have we been informed of the latest status of this development, so I cannot really comment on its state of completion. It might be possible for some lenders to offer independent bridging loans to complete the properties whilst in administration, but the administrators will require an indemnity in their and the lenders favour.
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pfffill
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Post by pfffill on Apr 16, 2020 1:32:17 GMT
One pretty much complete and two more than half complete houses, each on a good sized plot, for £530k the lot? It appears the receivers are recommending 'on the market' at that price, so does that mean the properties are being sold as one lot, and not at auction but through agents? Even at a time like this, it would seem there must be developers with cash and an eye for a bargain who might bid these up? Or are they made of balsa wood?
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coynej
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Post by coynej on May 20, 2020 16:42:14 GMT
What I dont understand with regard to this loan is the final update "
**Update 12/11/18** Underfloor heating and plumbing are in final stages in plot 2. Estimated current value of £2,035,000.
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Post by spareapennyor2 on Jul 7, 2020 13:01:45 GMT
update on site completed 600K after costs 565K borrowers administrators may claim against receivers so funds held until resolved
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pfffill
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Post by pfffill on Jul 7, 2020 13:22:14 GMT
So £565,000 against a total loan facility of £1,324,500, of which £379,500 is second charge - which will presumably be a 100% loss. First charge holders will receive approximately 565/945 = 59.79% back.
Another fine result brought to us by F farooking S!
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adrian77
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Post by adrian77 on Jul 7, 2020 13:45:50 GMT
How bloody much ! For all 3 ? Yet another appallingly managed project by FS - and don't tell me - there is no audit trail for the money?
Something very badly wrong here and I think yet again investors have been shafted. The new buyers seem a couple chaps who have just set-up a company for this project so good luck to them (assuming no connection with the original owner) But if one house is nearly finished this one is somewhere between totally misdescribed by FS or bargain of the century!
Looks like a 40% capital haircut for the main loan and yet another 100% wipeout for the supplementary loans?
Yet another one to add to my expect 100% losses - how the hell can FS lose so much money with "secure" lending?
Unbelievable!
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pfffill
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Post by pfffill on Jul 8, 2020 1:09:11 GMT
update on site completed 600K after costs 565K borrowers administrators may claim against receivers so funds held until resolved Sounds like the borrower got shafted by 'our' receivers, in which case couldn't have happened to a nicer shyster.
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Brainer
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Post by Brainer on Jul 9, 2020 13:50:47 GMT
How bloody much ! For all 3 ? Yet another appallingly managed project by FS - and don't tell me - there is no audit trail for the money? Something very badly wrong here and I think yet again investors have been shafted. The new buyers seem a couple chaps who have just set-up a company for this project so good luck to them (assuming no connection with the original owner) But if one house is nearly finished this one is somewhere between totally misdescribed by FS or bargain of the century! Looks like a 40% capital haircut for the main loan and yet another 100% wipeout for the supplementary loans? Yet another one to add to my expect 100% losses - how the hell can FS lose so much money with "secure" lending? Unbelievable! The updated valuation report (after the house sizes were increased and garages added) from June 2018 put the value of each house at £700k each on completion, so a GDV of £2.1m.
That same report had the cost complete at £400k, and a not insignificant amount of work was done after this judging from the photos contained in the report.
Conclusion: either that report was negligent, or there's something we're not being told, or the buyers have got the bargain of the century as you say, in which case the Receivers have to be questioned for pricing it so cheaply. The speed of the sale raises some doubts for me too, the new buyers were busy setting up the SPV just a few weeks after marketing started so were presumably fairly confident they were getting the project. Maybe this is what the borrower is contesting?
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