adrian77
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Post by adrian77 on Oct 4, 2017 16:25:53 GMT
This is plain silly! 1) I have checked the cost of timber frames - a 2 storey open panel timber frame for a 5 bed 317m2 house (big!) costs about £71K and the top of the range closed panel "platinum" model costs about £100K - name me a developer who does not ,at least , try to pay the balance until after delivery! OK this could be a specialist bespoke construction for the flat and house but £530K still seems a lot to me- have the foundations been laid!
2) doesn't this developer keep records as it a legal requirement ? Maybe for his year-end returns he just fills in a few numbers to keep HMRC happy as if they won't need proof? Maybe the frame company never bothered with a contract and just went ahead as asked or maybe not.Why didn't he take his receipt to the meeting or even phone his office and ask them to scan an image over to the meeting - QED
3) why on earth was this money advanced without proof of how the money was spent - looks like possible negligence to me
So we have had the wind turbine fiasco (one person had a mega loss there) , the North Yorks vanity project and speedboat sagas looking decidedly problematic and now this one which I find very hard to understand
Surely I am mistaken but it looks to me as if this developer has borrowed £530K against a site worth £141K (before demolition work)? I hope this paid frame invoice turns up but I would not put any money on it....
I love this forum - it has stopped me investing in most FS property loans
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Post by beepbeepimajeep on Oct 4, 2017 19:32:46 GMT
So when I invested in tranche 4, this was what Funding Secure wrote about the loan
If I am not mistaken the photos in the OP of this thread alone prove that description was a complete lie? About as bad a misrepresentation as the time I met a girl from the internet who used the nickname "CuteZoe".
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michaelc
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Post by michaelc on Oct 4, 2017 20:13:56 GMT
Is there any point in waiting for an update as we all know what's going to happen to this loan. 2 yr of interest is about 26% (excluding FS fees) and as it's already 70% LTV I can only see this ending up in the pile. I don't mean to be antagonistic (indeed hopefully helpful!) but if anyone is going to invest in this platform (and most other platforms) they should realise that the interest charged to the borrower is likely to be in the mid twenties meaning 2 years worth is closer to 50% ! I know you said "plus FS fees", but to me that read like the amount the platform takes is a lot smaller than is the reality.
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sb
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Post by sb on Oct 4, 2017 20:40:51 GMT
So when I invested in tranche 4, this was what Funding Secure wrote about the loan If I am not mistaken the photos in the OP of this thread alone prove that description was a complete lie? About as bad a misrepresentation as the time I met a girl from the internet who used the nickname "CuteZoe". When I invested in this loan There is no sign of any substructure being done and it looks like that timber frames have not been paid either.
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adrian77
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Post by adrian77 on Oct 5, 2017 9:32:51 GMT
Maybe this has been done - it is just the ultimate in shabby-chic rather than a pile of rubble...
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blender
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Post by blender on Oct 5, 2017 10:23:37 GMT
And the services in buckets, propane cylinders, and a generator.
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Post by Deleted on Oct 5, 2017 12:29:46 GMT
who is cutezoe? Hungarian truck driver?
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r1200gs
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Post by r1200gs on Oct 5, 2017 13:05:37 GMT
Afternoon, I have been busy since making my last posting to this thread, the fruits of this busyness arrived this morning via email from a individual linked to Authority. I do not wish to discuss in open forum what has been suggested to us by this party but I can say that it will involve a twin track approach and will not involve £cost. *Please PM me attaching a link to one of your posts in this thread made prior to this post to ensure that Only those with a financial interest in this loan become part of a private conversation. I'll leave it until Monday evening of next week to reply to all of you who have PM'd me by then, I shall write to you as a group rather than individually and discussions going forwards may best be served privately as a group. Thank you and kind regards, James. I've sent you a PM, though not sure how to link a post to it though. Surely I can only link a page?
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blender
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Post by blender on Oct 5, 2017 15:27:37 GMT
who is cutezoe? Hungarian truck driver? I think it might have been me. But I gave that sort of thing up long ago, honest.
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09dolphin
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Post by 09dolphin on Oct 6, 2017 16:25:25 GMT
I know I am not really as financial "savvy" as I could be but I'd be grateful if someone could explain the following:
How can FS threaten to default loan where the value of the land (security) has been given as £141K but the actual loan is in the order of £530K (without interest). I am aware that the borrower could own a timber frame and may have purchased bricks etc but would these have a value of at least £389K even at 100% of the total lent? If the asset has a value of only 141K but FS have acted as agents to persuade people to lend another £389k who is responsible? I would understand if FS were threatening to pursue the issue under fraud legislation but to suggest they can progress the issue under their ability to appoint a receiver when interest is unpaid and there is an existing personal guarantee seems fallacious to me.
I know FS have threatened to activate the personal guarantee and default the loan but does the borrower actually have the assets they have provided under the guarantee of at least £389K. (always assuming the land was correctly valued initially).
Any explanation would be most gratefully received.
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rs
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Post by rs on Oct 6, 2017 16:50:35 GMT
I would rather FS defaults the loan. Then hopefully the land will become owned by FS/Lenders. Then lenders can atleast use the land & pitch a tent or put a van on the land and then rent it out. We'll atleast get our money back in about 200 years. Oops Sorry I mean my great grand children will get the money as I'll be in heaven with the borrower.
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mikes1531
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Post by mikes1531 on Oct 6, 2017 17:38:23 GMT
Sorry I mean my great grand children will get the money as I'll be in heaven with the borrower. Does anyone other than rs think the borrower will get to heaven? I certainly don't!
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r1200gs
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Post by r1200gs on Oct 7, 2017 7:39:56 GMT
I know I am not really as financial "savvy" as I could be but I'd be grateful if someone could explain the following:
How can FS threaten to default loan where the value of the land (security) has been given as £141K but the actual loan is in the order of £530K (without interest). I am aware that the borrower could own a timber frame and may have purchased bricks etc but would these have a value of at least £389K even at 100% of the total lent? If the asset has a value of only 141K but FS have acted as agents to persuade people to lend another £389k who is responsible? I would understand if FS were threatening to pursue the issue under fraud legislation but to suggest they can progress the issue under their ability to appoint a receiver when interest is unpaid and there is an existing personal guarantee seems fallacious to me.
I know FS have threatened to activate the personal guarantee and default the loan but does the borrower actually have the assets they have provided under the guarantee of at least £389K. (always assuming the land was correctly valued initially).
Any explanation would be most gratefully received.
I think the personal guarantee will turn out to be not worth the paper it's written on, and that he will be delaying any action as long as possible while making sure the personal guarantee is not worth the paper it's written on. I believe FS are responsible for the missing money that I invested in tranche 5 because they advertised the tranche with false information and were negligent in doing so, though I have yet to get a legal opinion on that.
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adrian77
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Post by adrian77 on Oct 7, 2017 8:55:00 GMT
Sadly I totally agree with this.
The value of £141K seems low to me but, if I am reading it correctly, that is the valuation
Maybe FS could offer to accept the PG rather than threaten to report this matter to the authorities as a potential fraud should there be supporting evidence for this.....otherwise I wonder if we are looking at a 100% loss here? Wonder how many local Cumbrian builders have flagged this is a future cheap buying opportunity
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Post by harryvederci on Oct 7, 2017 9:52:07 GMT
I dont know if its just a matter of semantics but why do FS keep referring to the borrower as 'he' when the sole director of the borrower company is a 'she'? The registered address of the borrower company is a farmhouse not owned by the borrower, so if she is just a tenant the PG may be worthless
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