ali
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Post by ali on Dec 8, 2016 21:44:10 GMT
I was in Whitehaven yesterday (2016-12-07) and managed a flying visit to this site and took some photos that some might find enlightening: Clearly, demolition work is still ongoing which seems somewhat at variance with the contents of FS's description of the asset in the renewal of tranche 3:
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ali
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Post by ali on Apr 12, 2017 21:13:33 GMT
I was in Whitehaven again today (2017-04-12), so I took another look at this site: fundingsecure might want to compare this photo with what the borrower is telling them.
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phil
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Post by phil on Apr 13, 2017 12:31:20 GMT
I was in Whitehaven again today (2017-04-12) Crikey, the borrower had £100k to buy the plot and has received a further £430k to develop it. He had a £200k 5th tranche last November to fund the external masonry, roof and windows. I can't believe there's £530k value there even if the timber frame has been made. And estimated value last November was £800k. I think I'd rather be in the Scottish Boatyard than this one and that's saying something.
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SteveT
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Post by SteveT on Apr 13, 2017 12:58:06 GMT
The 4th tranche, intended to fund the timber frame, was activated in early July 2016, shortly after " A site visit by FundingSecure was performed on June 6, 2016." At that point the valuation was put at £500k, supporting £330k funds advanced, and there was a very clear statement that " At no stage will cumulative tranches exceed 70% of current value". The 5th tranche of another £200k, intended to fund " external masonry, roof and windows" apparently was activated in mid November 2106, based upon an increased valuation put at £800k. However there is no mention of a further site visit, only reference again to the one made back in June. As someone who was persuaded to put some funds into the 4th tranche, I want to know what evidence FS obtained to support a £300k increase in valuation in November and so justify advancing a further £200k (on parri pasu terms). The "current value" web-link next to the 5th tranche £800k figure only gives the 4th tranche figures again (the £500k valuation from 2nd July) so I'm none the wiser there. fundingsecure , some comment please.
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sb
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Post by sb on Apr 13, 2017 14:01:30 GMT
He had a £200k 5th tranche last November to fund the external masonry, roof and windows. I can't believe there's £530k value there even if the timber frame has been made. And estimated value last November was £800k. I think I'd rather be in the Scottish Boatyard than this one and that's saying something. Lucky you. The big question is what happened to £200k-£300k.
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grahamg
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Post by grahamg on Apr 13, 2017 15:17:01 GMT
He had a £200k 5th tranche last November to fund the external masonry, roof and windows. I can't believe there's £530k value there even if the timber frame has been made. And estimated value last November was £800k. I think I'd rather be in the Scottish Boatyard than this one and that's saying something. Lucky you. The big question is what happened to £200k-£300k. Spent on his Legal dispute ?
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 13, 2017 15:43:37 GMT
FS please justify/comment asap.
EDIT: There is an update 10/4/17 - SEE 4th tranche (2754713515)
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Post by beepbeepimajeep on Apr 13, 2017 16:24:34 GMT
Is this the loan where the updates are going on about some court case the borrower is in? Yet funding secure (01/04/2017 update).
I am in the 4th tranche of this 2754713515 and also feel funding secure should comment on it.
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09dolphin
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Post by 09dolphin on Apr 13, 2017 23:23:41 GMT
Think FS may find this rather expensive as they assure investors that LTV will not be allowed to exceed 70%. I had a small amount in 1st tranche where the land and buildings were valued at 141K.
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phil
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Post by phil on Apr 16, 2017 0:09:12 GMT
He had a £200k 5th tranche last November to fund the external masonry, roof and windows. I can't believe there's £530k value there even if the timber frame has been made. And estimated value last November was £800k. I think I'd rather be in the Scottish Boatyard than this one and that's saying something. Lucky you. The big question is what happened to £200k-£300k. Why lucky me? ? The big question isn't what happened to £200k-£300k, it's gone and that's it. A big question is why do we have £530k secured on a plot which if we had to repossess in it's current state we'd be lucky to get a fraction of that. A big question is why are we told it is "secured lending at maximum 70% LTV" when plainly if we had to repossess this site tomorrow in it's present state it isn't worth a fraction of the supposed £800k valuation. This is a pawn style site where borrowers don't have to prove their financial credentials, they simply have to provide something that has value and they can borrow 70% against it. This plot clearly doesn't have a value of £800k as it stands so why on earth does it stand as security for a £530k loan. We are entirely at the mercy of the borrower, we need him to get the footings and services in, put up the timber frame, do the external masonry, roof and windows on the nine apartments and the house so that the property may then actually be worth something approaching it's valuation. Until he does that we're stuck with nothing more than a razed building site and supposedly a timber frame, bricks, roof and windows languishing somewhere or other. Edit: update 10/4/17 - (2754713515) The plot won't be worth £800k until he does the work, that's the wrong way around, we're supposed to be lending on current valuations not expected future values that depend entirely on whether or not a borrower pulls finger.
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sb
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Post by sb on Apr 16, 2017 11:31:08 GMT
Lucky you. The big question is what happened to £200k-£300k. Why lucky me? ? The big question isn't what happened to £200k-£300k, it's gone and that's it. A big question is why do we have £530k secured on a plot which if we had to repossess in it's current state we'd be lucky to get a fraction of that. A big question is why are we told it is "secured lending at maximum 70% LTV" when plainly if we had to repossess this site tomorrow in it's present state it isn't worth a fraction of the supposed £800k valuation. This is a pawn style site where borrowers don't have to prove their financial credentials, they simply have to provide something that has value and they can borrow 70% against it. This plot clearly doesn't have a value of £800k as it stands so why on earth does it stand as security for a £530k loan. We are entirely at the mercy of the borrower, we need him to get the footings and services in, put up the timber frame, do the external masonry, roof and windows on the nine apartments and the house so that the property may then actually be worth something approaching it's valuation. Until he does that we're stuck with nothing more than a razed building site and supposedly a timber frame, bricks, roof and windows languishing somewhere or other. Edit: update 10/4/17 - (2754713515) The plot won't be worth £800k until he does the work, that's the wrong way around, we're supposed to be lending on current valuations not expected future values that depend entirely on whether or not a borrower pulls finger. I thought you meant you were in the Scottish Boatyard. I agree FS should be liable for any losses as they didn't check the progress of the project and were increasing the valuation based on God knows what. For the last increase from 500k too 800k they didn't even bother to put some dodgy estimation based on how much had been lent so far as it wouldn't produce the right number. Knowing what happened to the money could help assess chances of a positive outcome, the borrower finishes the project. My guess they will drag this for years trying to avoid recognising losses in the official stats. We could accept losses or ask FS for a compensation. They will likely resist the second option as it would cost them around 300k. Has anybody asked FS about this loan?
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09dolphin
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Post by 09dolphin on Apr 24, 2017 9:02:15 GMT
The borrower wasn't answering their phone according to the latest update at the weekend. In view of the previous photos on this thread and the further tranches issued because of progress they claim to have made I would have thought FS would be rather more proactive than just saying they will try to contact the borrower this week. Perhaps a site visit by the person who made the valuation would be appropriate to assess the progress? If the photos really do demonstrate the state of the site (and I have no doubt that they do) I would expect FS to threaten criminal proceedings.
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r1200gs
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Post by r1200gs on Apr 24, 2017 9:52:23 GMT
This doesn't look good at all. Borrowers that suddenly have communications problems are never good, never ever. I invested in this based on the updates provided by FS, and the updates looked nothing like those pictures. Where is the money?
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sb
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Post by sb on Apr 24, 2017 11:06:07 GMT
Not paying debt to FS lenders is like taking candy from a baby. You just ignore any calls from FS and you can forget you own any money.
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r1200gs
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Post by r1200gs on Apr 24, 2017 11:20:59 GMT
Not paying debt to FS lenders is like taking candy from a baby. You just ignore any calls from FS and you can forget you own any money. I've voiced my concerns and asked them for an urgent update. At the same time, I have already listed some loans for sale. I invested in this based on the cheery update, reassurance that LTV would not exceed 70 percent and that progress was going well. The update received from FS bears no relation to the site shown above, and come to think of it, do we know for sure that the timber actually has been paid for? I can't be lending on a platform where they just take the borrowers word, pass that on to us as fact and hand him £200,000, yet it looks like that is exactly what happened. I sincerely hope there is a good explanation for this and if there is, it needs to be explained right now.
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