cooling_dude
Bye Bye's for the PPI
Posts: 2,853 
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Post by cooling_dude on Sept 14, 2016 14:21:44 GMT
This Loan Is LIVE
| Loan Amount | : | £ | 196,800
| | Security Value | : | £ | 328,000
| | SS Indicated LTV | : |
| 60% | | 90 Day Market Valuation | : | £ | 282,000
| | LTV Based on 90 day Market Valuation | : |
| 70% | | Term | : |
| 274 days
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PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)
Loan Information & Observations
Borrower - P***** Limited (Isle of Man registered company)
- SS state that the beneficial owner of the above company is an experienced property surveyor based in Scotland who has built up a substantial property portfolio around central Scotland. Personal wealth in excess of £1m.
- It seems that the above person is M***** D**** (as indicated in the valuation report).
Loan
- SS state that the borrower is releasing equity from the properties to clear an existing debt and to go towards planning costs on another project. Gross loan amount 60% of Valuation.
Security - 6 Flats (See Below)
- 6 Flats; 3 to be found in the same build, with the remainder in 3 other separate buildings
- 18 R******** Avenue, Edinburgh
- Second floor flat contained within a 4 storey traditional tenement block constructed c1900
- The flat has been adequately maintained internally. Externally, ongoing maintenance should be anticipated to the building fabric with particular attention to the flat section of the roof.
- £115,000 Market Value
- £105,000 90day Market Value
- 18 M***** Street, Edinburgh
- Second floor flat contained within a 4 storey public works office conversion constructed c1897
- Showing signs of wear and wear and would benefit from some freshening & modernisation. Externally ongoing maintenance to the building fabric should be anticipated.
- £85,000 Market Value
- £75,000 90day Market Value
- Flat 3 B******* Terrace, Lanark
- Ground floor flat in a two storey terrace
- The exterior of the property is generally weathered and a number of repairs are required including overhauling of gutters, repairing of roughcast and external decoration. Internally the property appeared in fair if basic order.
- £40,000 Market Value
- £30,000 90day Market Value
- Flat 1 C***** View, Airdrie
- Ground floor flat in a two storey tenement building
- Externally, deterioration to masonry areas particularly at the gable wall and masonry repairs are required in this section. The VR notes that it would be appropriate as a condition on any loan to ensure masonry repairs are carried out.
- Internally the flat appeared in fair if basic order.
- £22,000 Market Value
- £18,000 90day Market Value
- Flat 2 C***** View, Airdrie
- First floor flat in two storey tenement building
- See note in Flat 1, Church View (same building) for External condition and VR note
- Internally the flat appeared in fair if basic order.
- £28,000 Market Value
- £22,000 90day Market Value
- Flat 4 C***** View, Airdrie
- First floor flat in two storey tenement building
- See note in Flat 1, Church View (same building) for External condition and VR note
- Internally the flat appeared in fair if basic order.
- £38,000 Market Value
- £32,000 90day Market Value
Exit Strategy
- The borrower is going to sell off a few of the properties during the loan term to clear the debt and then keep the remaining properties as long-term investments.
| Code Number Assigned | : | 14/09/16 | | Loan went live @ | : | 15/09/16 | | Allocation | : | £120 | | Amount of Investors @ Live | : | 1632 |
If you require any citation for the above information please PM me  . Any observations you have please be sure to post it in this thread and I will try to add it to this overview.
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grahamg
Member of DD Central
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Post by grahamg on Sept 14, 2016 18:07:19 GMT
Can't see any information on SS as to whether the borrower holds these properties freehold or leasehold (if so what duration) or whatever the equivalent is in scotland
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Sept 14, 2016 18:19:04 GMT
Can't see any information on SS as to whether the borrower holds these properties freehold or leasehold (if so what duration) or whatever the equivalent is in scotland In the valuation report, it indicates that all the properties are "Absolute Ownership" which is (I believe) the Scottish equivalent to Freehold.
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Post by GSV3MIaC on Sept 14, 2016 18:28:42 GMT
/mod hat off
You have to wonder if it's actually worth investing much time or effort in DD for a loan where you'll be lucky to get £20 in each of the 6 properties .. although looking at the pix in the VR you can see why we're not into the mega£ range here. I guess we don't need to hedge against S-Exit during the loan duration. 8>.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Sept 14, 2016 18:33:19 GMT
/mod hat off You have to wonder if it's actually worth investing much time or effort in DD for a loan... I don't know.... The director may (or may not; it's a common name, so need to find some conclusive information) have some interesting information surfacing. If it's true, there could be some sinister motives for this loan.
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mikes1531
Member of DD Central
Posts: 6,452
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Post by mikes1531 on Sept 14, 2016 18:56:28 GMT
You have to wonder if it's actually worth investing much time or effort in DD for a loan where you'll be lucky to get £20 in each of the 6 properties .. I have to agree. If the borrower defaults at the end of the six-month term, and the properties all have to be sold, even a poor sale result wouldn't produce a very large amount of pounds lost. In that case, I'd expect the PF to make up the difference. So the risk strikes me as rather low.
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fp
Posts: 1,008
Likes: 853
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Post by fp on Sept 14, 2016 19:02:29 GMT
I can see where cooling_dude is coming from here, whilst the loan is a small one, there are a few things cropping up when you dig just below the surface, a few more dots in the right place and we could quite easily have the full picture |
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Post by dualinvestor on Sept 14, 2016 19:30:45 GMT
Can't see any information on SS as to whether the borrower holds these properties freehold or leasehold (if so what duration) or whatever the equivalent is in scotland Scotland does not have "freehold" or "leasehold" they have similar concepts but they have different names. In England it is not possible to hold a flat freehold because of the rights of other flat owners so they are all leasehold. I would imagine similar rules apply in Scotland.
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am
Posts: 1,495
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Post by am on Sept 15, 2016 0:51:14 GMT
/mod hat off You have to wonder if it's actually worth investing much time or effort in DD for a loan... I don't know.... The director may (or may not; it's a common name, so need to find some conclusive information) have some interesting information surfacing. If it's true, there could be some sinister motives for this loan. Where do you find information for IoM companies?
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Sept 15, 2016 6:01:23 GMT
I don't know.... The director may (or may not; it's a common name, so need to find some conclusive information) have some interesting information surfacing. If it's true, there could be some sinister motives for this loan. Where do you find information for IoM companies? The information available is limited, though. There are 9 documents to view (for P***** Limited) but you have to pay for them
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Post by dualinvestor on Sept 15, 2016 6:32:37 GMT
I don't know.... The director may (or may not; it's a common name, so need to find some conclusive information) have some interesting information surfacing. If it's true, there could be some sinister motives for this loan. Where do you find information for IoM companies? There is a public Companies Registry in the Isle of Man and it does provide online access but it of limited value. Most companies registered there are "offshore" and managed by agents and nominees of the real owner. So apart from having to pay £2 a time all a document is likely to tell you is ABC Limited has XYZ Directors Limited as it's director and XYZ Nominees Limited as it's shareholders. Recent international agreements mean beneficial ownership information is made available to other countries' authorities (eg HMRC) but at present that is not publicly available and unlikely to be so in the foreseeable future.
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Investboy
Member of DD Central
Trying to recover from P2P revolution
Posts: 564
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Post by Investboy on Sept 15, 2016 9:39:58 GMT
Yet again kudos to you cooling_dude ! I'm based in our beautiful capital city and when I read those valuation I think they are full of typos and missing zeros  My mind just defies the reality and can't process those numbers as true assigned to the stated facts. Flats for 28k, 38k 40k? Is it a yearly rent or what? Wealthy individual with portfolio of 1M? Here it is one decent house or river view flat. 6 Flats for 328k? Here it is 3-bed flat in dodgy area. It amazes me the difference we have here in property prices and perceived value. |
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grahamg
Member of DD Central
Posts: 220
Likes: 62
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Post by grahamg on Sept 15, 2016 10:17:29 GMT
Can't see any information on SS as to whether the borrower holds these properties freehold or leasehold (if so what duration) or whatever the equivalent is in scotland In the valuation report, it indicates that all the properties are "Absolute Ownership" which is (I believe) the Scottish equivalent to Freehold. The answer from SS is that "The properties are leasehold. The properties are understood and assumed to be held on the basis of outright ownership of the heritable interest." Do i like the words understood and assumed?
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Post by ydobon on Sept 15, 2016 10:25:11 GMT
/mod hat off You have to wonder if it's actually worth investing much time or effort in DD for a loan where you'll be lucky to get £20 in each of the 6 properties .. although looking at the pix in the VR you can see why we're not into the mega£ range here. I guess we don't need to hedge against S-Exit during the loan duration. 8>. From what I can see, it's a single loan against the consolidated properties, not 6 discrete loans.
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Post by dodgeydave on Sept 15, 2016 10:31:16 GMT
In the valuation report, it indicates that all the properties are "Absolute Ownership" which is (I believe) the Scottish equivalent to Freehold. The answer from SS is that "The properties are leasehold. The properties are understood and assumed to be held on the basis of outright ownership of the heritable interest." Do i like the words understood and assumed? That sounds like a guess rather than factual .
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. Any observations you have please be sure to post it in this thread and I will try to add it to this overview.
My mind just defies the reality and can't process those numbers as true assigned to the stated facts.