r00lish67
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Post by r00lish67 on Feb 24, 2018 8:28:10 GMT
Updates in on these. Really nice to see a) a clear sequence of events being laid out, b) approximate timelines and c) an anticipated final result. Appreciate that the proof is in the pudding, but still, more of the same please, fundingsecure
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sarahcount
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Post by sarahcount on Feb 27, 2018 21:04:56 GMT
Update "The fire brigade visited the site today. They failed the building on account of non-compliance with recent post-Grenfell regulations around smoke evacuation. Contractor has accepted responsibility and will work to rectify. We think this adds around 2 weeks to the timeline."
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james21
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Post by james21 on Feb 27, 2018 21:13:46 GMT
And more cost to rectify
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r00lish67
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Post by r00lish67 on Feb 27, 2018 21:23:40 GMT
and yet, I'm still liking the otherworldly actual communication of apparent facts more than I dislike the issue. Give it a few more weeks.
Great day to bury bad news, anyway.
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james21
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Post by james21 on Feb 27, 2018 21:29:15 GMT
Guidance changed after the Grenville disaster, so why did the developer not deal with the issue long before now, was it so difficult to understand what might be needed to comply? FS I can understand did nothing, for as we know they are quite clueless and in experienced in managing the loan book
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adrian77
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Post by adrian77 on Feb 28, 2018 13:18:48 GMT
not sure I buy this explanation- granted the fire brigade have correctly failed the building but the work should have been specified by an architect. I doubt if this is a failure down to the architect - as to whether this developer actually used one in the first place and/or the builder failed to follow the instructions is another question. If an architect is negligent then they can be sued - granted architects don't come cheap but I always use one where needed. I wonder how much FS actually oversaw this project. The remediation could be very simple or very expensive and I have no idea.
I had already hit this one with the Smutty Stick as there seems a big black hole in the finances and now it just got a whole lot worse!
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Post by scores on Feb 28, 2018 17:58:34 GMT
Update "The fire brigade visited the site today. They failed the building on account of non-compliance with recent post-Grenfell regulations around smoke evacuation. Contractor has accepted responsibility and will work to rectify. We think this adds around 2 weeks to the timeline." How very convenient for the borrower,who has had absolutely no intention of repaying this loan. Since back in October this borrower has been informing FS of arranging the Building Certificates to be presented. 06/11/2017 We understand the offer mentioned below is still valid. The valuation is being arranged. Building certificates are due to be issued this week. 26/11/2017 The sale of the building has been held up because the building certificates have not been issued. We have spoken directly with the builder and he has promised to have these available next week. 18/12/2017 We have spoken with the contractor who expects to get the relevant certificates through this week. 10/01/2018 Borrower has been back in touch this week. The buyers are due to visit the site on Friday. A valuation of the site has been completed and valued at £1,450k. The contractor has advised that the certificates should be available this week. 06/02/2018 We spoke with the building contractor yesterday who advised that he is expecting the building certificates to be issued any day now. The snagging list is part complete. The borrower's solicitor has confirmed that buyer is waiting for the certificates to be issued prior to formally instructing their lawyers. 24/02/2018 We now have some timelines for repayment of this debt. Prospective purchaser has agreed to exchange contracts within 7 days of issuing the certificates - which are expected a few days after the fire brigade inspection on the 27th. There will then be a 30 day completion period. We are therefore realistically looking at repayment of this debt by mid-April. Based on this timeline, we believe the debt will still be repaid in full and with all interest. This decision by the Fire Service has just helped this borrower delay payment for another "estimated" 2 weeks. This is on top of the added 30 days of completion of contracts,and only then,if the borrower has presented the non existent Building Certificates. Instead of FS just taking any excuse for the Building Certificates never showing,they should have been on this borrowers back every week,insisting that be presented. This has once again re-enforced my belief that FS just do not care about getting lenders their money back in a timely and efficient manner. FS are more concerned with getting the next loans on their books so they can make more money for themselves and do not give a s**t about lenders losing theirs.
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mariner
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Post by mariner on Feb 28, 2018 18:19:42 GMT
Summed it up beautifully
Isn’t it time the Financial Regulator pulled their finger out & did some real auditing on FS (and others of course)
The drivel that FS spout out in their updates is better than what the Grimm Brothers wrote
But this is real people, real money, that FS are playing with & are certainly not exercising any due care & attention
As stated above, just rolling out any old loan knowing it will be funded, taking their fat fees & laughing all the way to the bank at our expense
Really is a shambles
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adrian77
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Post by adrian77 on Feb 28, 2018 19:19:34 GMT
I deal in legal contractrs and not glib promises - hello FS -hardly the first broken promise we have heard is it.
date to add to electronic diary!
Really - if there is a cash buyer urgently wanting a sale, no more legal snaggettes and the solicitors get their finger out then I think this 6 week timeframe is still optimistic although possible. I have bought over 20 properties but never this quickly...not only has the work to be done but also to await buildlng control who aren't going to drop everthing else on their plate for this chap!
This chap started borrowing in August 2106 - I think he now owes £815K plus interest which seems to have been due in August 2017. Only 3 flats are for sale on the agent site (granted the others may be for sale with other agents or may not be finished?) If we take £815K at about 30% that is 240K per year or £20K per month - nasty. This chap has already borrowed to repay earlier interest so what happens if this drags on another 6 months...
I may be wrong but I wonder if this developer is simply clocking up mega-interest on £815K whilst he waits for the 7 flats to sell and is praying 5 sell in order to repay FS? This developer has more bottle than I have but a very interesting one to follow which I think, it is fair to say, is going to be close in terms of realising a profit. For me it is Smutty Stick time...
If I were FS I would have repossed this site by now and put the flats to auction - the fact these flats were bult whilst contravening fire regulation does not fill me with confidence that this was a well run project. I will check with my architect but I can't see any recent legislation or even recommendations that refer to flats like these (unlike those with cladding).
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adrian77
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Post by adrian77 on Feb 28, 2018 20:03:15 GMT
there seems a be a serious buyer for the whole development - hope he can't force the price down at the last minute...
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greenslime
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Post by greenslime on Feb 28, 2018 20:35:15 GMT
I will check with my architect but I can't see any recent legislation or even recommendations that refer to flats like these (unlike those with cladding). Be interested to hear what you find out - I was trying to work out what about Grenfell would be relevant to this type of development. Not that have any expertise of knowledge in the subject, or any other for that matter.
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Liz
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Post by Liz on Feb 28, 2018 20:44:19 GMT
How are FS supposed to repossess and sell these in an auction when they aren't fire compliant. Just imagine if they did sell them and dread the thought they burnt down and killed someone. FS would be sued for millions and the site would collapse.
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mikes1531
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Post by mikes1531 on Mar 1, 2018 4:25:00 GMT
not sure I buy this explanation- granted the fire brigade have correctly failed the building but the work should have been specified by an architect. I've not paid enough attention. This project started construction a considerable while ago. Could all of the plans have been signed off before Grenfell? This chap started borrowing in August 2106 - I think he now owes £815K plus interest ... adrian77: I think you may have missed a tranche or two. I make the total capital of FS loans to be £1072k. The last loan made was for £77k and ranks behind all of the others. Holders of that loan should be very nervous, especially after the most recent delay announcement. ISTM that there's a good chance the developer will get little or nothing from the sale. Depending on whether the loan is in their name or an SPV's, they could end up being pursued by FS for any shortfall. In any case, I don't see how it could be to their advantage to delay the sale. I really don't think there's any chance someone is going to jump in and try to gazump the current buyer!
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adrian77
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Post by adrian77 on Mar 1, 2018 7:27:55 GMT
Liz - I have been doing this for 39 years - of course they can't be sold to the public (buyer's solicitor would not proceed) before the fire issues are sorted but if FS knew how the property world worked there should have been a legal clause with penalties to ensure these flats were built to current requirements and the work remedied at the architect's and/or builder's expense.
Whatever my point was the longer these flats are unsold the more likely they will incur a loss. I have a part of this and what my money back asap.
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adrian77
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Post by adrian77 on Mar 1, 2018 7:34:05 GMT
I could not find this latest figure but I am sure you are right - this is even worse than I thought and could easily be my first FS loss - Smutty Stick!
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