cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Oct 3, 2016 11:39:46 GMT
REPAID LOAN
| Loan Amount | : | £ | 395,000
| | Security Value | : | £ | 565,000
| | SS Indicated LTV | : |
| 70% | | 90 Day Market Valuation | : | £ | 505,000
| | LTV Based on 90 day Market Valuation | : |
| 78% | | Term | : |
| 183 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PLEASE NOTE : This post (and all my DD posts) are no longer being updated by myself (besides the basic loan status)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 - D**** F*****
- SS state that our borrower is a wealthy business owner who has over 20 years of experience in the building trade; he has undertaken work ranging from domestic renovation and extensions to multi-million-pound developments for housing associations and private developers. He also has a reasonably large property portfolio in and around the London area.
- The name is fairly common, so it's hard to carry out any DD on the actual borrower.
Loan
- The borrower is looking to purchase the property
Security
- The property is a four bedroom, two-storey semi-detached house believed to have been constructed around the 1930s.
- It is currently being offered for sale via 'Frost Properties'. It is currently 'under offer' (presumably our borrower) but no price is indicated.
- The Valuation notes that they are aware the property is currently selling for £565,000. Considering this and the comparable evidence they (the surveyors) feel £565,000 is a fair reflection of value for this property that is smaller than comparables
- Our borrower plans to apply for planning permission to turn the house into individual residential flats (No PP in Place & security is value with no 'Hope Value'.)
- At the time of the inspection, the premises appeared to be in a fair condition and state of repair having regard to the age and construction.
Exit Strategy
- Refinance through development finance (no indication if SS are looking to offer this development finance)
| Code Number Assigned | : | 03/10/16 | | Loan went live @ | : | 04/10/16 | | Allocation | : | £190 | | Amount of Investors @ Live | : | 2263 |
Credit to fp for his input - a ny 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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fp
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Post by fp on Oct 3, 2016 11:51:33 GMT
Flat 31 bxxxxxxx road 180k Mar 2015
Fat 31a bxxxxxxx road 290k mar 2016
I'm guessing this is the adjoining property which has already been converted...... Giving a combined value of completed property at just over 500k working on estimated values
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puffin
Member of DD Central
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Post by puffin on Oct 3, 2016 12:27:02 GMT
Based on recent loans, about 1700 to 1900 investors. So around £220 per invesotor available for this loan.
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lobster
Member of DD Central
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Post by lobster on Oct 3, 2016 13:20:27 GMT
Flat 31 bxxxxxxx road 180k Mar 2015 Fat 31a bxxxxxxx road 290k mar 2016 I'm guessing this is the adjoining property which has already been converted...... Giving a combined value of completed property at just over 500k working on estimated values Well I suppose if next door (assuming No. 31 IS next door) got planning permission to convert to 2 flats then one would assume that our borrower at No. 29 would also stand a good chance of getting the same planning permission. I used to live near the location - it's described as a "residential road" in the valuation, but personally IIRC "the world's busiest junction" would be closer to the truth, where the A23 meets the A22. Still, that shouldn't necessarily put anyone off - everything has its price, and at least it has a drive for 2 cars, and is also very close to Purley station which is a actually big plus point, with relatively straightforward commuting into London
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mikes1531
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Post by mikes1531 on Oct 3, 2016 13:51:18 GMT
I used to live near the location - it's described as a "residential road" in the valuation, but personally IIRC "the world's busiest junction" would be closer to the truth, where the A23 meets the A22. The valuer's photo of the 'street view' is consistent with lobster's description. It shows a three-lane, one-way street. And the valuer clearly didn't go on the same photography course that an estate agent would -- their photo of the street includes a huge lorry occupying two of the three lanes!
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mikes1531
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Post by mikes1531 on Oct 3, 2016 14:00:23 GMT
From the OP... From the VR... They obviously subscribe to the 'you tell me what you're paying and I'll provide a valuation to match' school of valuation.  That's not to be taken as a criticism, though, since the best indicator of anything's value probably is what someone's willing to pay for it. |
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adrianc
Member of DD Central
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Post by adrianc on Oct 3, 2016 15:19:39 GMT
From the OP... From the VR... They obviously subscribe to the 'you tell me what you're paying and I'll provide a valuation to match' school of valuation. That's not to be taken as a criticism, though, since the best indicator of anything's value probably is what someone's willing to pay for it. Residential valuations in surveys pretty much always follow that school. Unless the valuer thinks the buyer's being taken for a ride, usually because of something found during the survey, when they'll down-value it. So, basically, this valuation's following the normal rule - "We don't think it's wildly over the market, and we don't think there's anything hideously wrong with it that isn't already apparent".
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Post by tinkertailor25 on Oct 3, 2016 16:23:20 GMT
Flat 31 bxxxxxxx road 180k Mar 2015 Fat 31a bxxxxxxx road 290k mar 2016 I'm guessing this is the adjoining property which has already been converted...... Giving a combined value of completed property at just over 500k working on estimated values I think it might be 3 flats, there's also a 'Ground Floor Maisonette' listed at #31, Zoopla estimate of £191,000.
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fp
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Post by fp on Oct 3, 2016 16:27:58 GMT
Flat 31 bxxxxxxx road 180k Mar 2015Fat 31a bxxxxxxx road 290k mar 2016 I'm guessing this is the adjoining property which has already been converted...... Giving a combined value of completed property at just over 500k working on estimated values I think it might be 3 flats, there's also a ' Ground Floor Maisonette' listed at #31, Zoopla estimate of £191,000. Both are one and the same
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Post by tinkertailor25 on Oct 3, 2016 16:29:53 GMT
Zoopla has #31, #31A and 'Ground Floor Maisonette At 31' listed, all with different valuations. The maisonette last sold June 2003 for £105k.
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adrianc
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Post by adrianc on Oct 3, 2016 17:02:02 GMT
Zoopla has #31, #31A and 'Ground Floor Maisonette At 31' listed, all with different valuations. The maisonette last sold June 2003 for £105k. That probably says more about Zoopla than about the property in question. A council tax band search says 31 (band C) and 31A (band B) - effective 1993. 23 and 25 are four flats each (converted 2012). 13 is two flats (effective before 1991).
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duck
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Post by duck on Oct 4, 2016 11:56:56 GMT
Live with £190 allocation.
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blueninja
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Post by blueninja on Dec 28, 2016 9:37:09 GMT
Looking at the local council's website, it looks like the planning permission was rejected on 23/11/2016. Interesting that the recent update from SS does not mention this.
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ali
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Post by ali on Dec 28, 2016 11:16:17 GMT
Looking at the local council's website, it looks like the planning permission was rejected on 23/11/2016. Interesting that the recent update from SS does not mention this. Presumably you're talking about PP-05505501, but that is for Nos. 39-41 which isn't our security. I haven't been able to find a PP application for this loan to date.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Dec 28, 2016 15:17:11 GMT
Well I suppose if next door (assuming No. 31 IS next door) got planning permission to convert to 2 flats then one would assume that our borrower at No. 29 would also stand a good chance of getting the same planning permission. Going by the map view on Croydon's planning portal, 31(a) is adjacent to 29 but 27 is the adjoining property. Number 27 had PP approval for conversion to 5 flats, including a side/rear extension, in June 2015 and then a requested discharge against one of the approval conditions also approved in Nov 2015. Number 29 was an objector to that original PP, so I'm wondering whether they decided to sell up once the PP was approved and the developer has now bought 29 having completed 27. Cheers, Ian.. If you keep digging you will come across several letters to the houses of commons, where the previous owner has complained (a lot!) about a streets regeneration scheme stalling (and in the end being scrapped). It seems she was hoping then that a property firm was going to buy all the houses in the street, in anticipation of the regeneration scheme. Quite possible she has been looking for a way out of the street for a while. There have been several proposed developments similar to what our borrower proposes in the street, including 27 & 23-25 (both accepted). SS note that our borrower has 'recently completed' on the same street, but his name is not attached to the any of the above PPs (although it is likely he purchased the property(s) post-PP). No PP submitted yet, despite it being proposed in the loan overview; however, no hope value is attached to VRs MV. As a footnote; The borrower here is the same borrower as PBL149.
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That's not to be taken as a criticism, though, since the best indicator of anything's value probably is what someone's willing to pay for it.
