bugs4me
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Post by bugs4me on Dec 4, 2017 10:12:41 GMT
<snip>
Why are FS putting forward a loan with only information (minimal) about the shell of the building?
Because they can still get it funded. Until the funding supply slows or ceases then more and more platforms will be encouraged to list loans containing minimal details. Why bother with the cost of a formal valuation when you can do a desktop one? Why bother with a desktop valuation when you can just pluck figures out of the air, or probably supplied by the borrower? My XIRR with FS is a shade over 9% but expect that will reduce once the South Wales property partially repays eventually.
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mullet
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Post by mullet on Dec 4, 2017 10:15:07 GMT
The borrower is now looking to borrow money against the freehold of the individual flats. FS has provided a valuation report for the following 21 flats: 3, 4, 5, 6, 17, 19, 20, 26, 28, 30, 31, 35, 36, 43, C10, 47, 51, C11, 56, 57, 63 However, the loans are against flats 22, 55 & 65 I would have thought these 3 flats should be amongst the 21 that were valued ... or am I missing something? If you take a look at the Assets tab for each loan you'll see the rooms have been re-numbered since the valuation... Rm 55: Note that the room numbers have since been re-ordered and this room is room C10 on the valuation report. Rm 22: Note that the room numbers have since been re-ordered and this room is room 20 on the valuation report. Rm 65: Note that the room numbers have since been re-ordered and this room is room C11 on the valuation report. All the rooms are included in the valuation report. Putting room 65 on the 1st floor is going to confuse a few students. All other rooms on this floor are numbered between 17 and 26 ...Or we've been given the wrong numbers
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Post by dan1 on Dec 4, 2017 10:20:44 GMT
If you take a look at the Assets tab for each loan you'll see the rooms have been re-numbered since the valuation... Rm 55: Note that the room numbers have since been re-ordered and this room is room C10 on the valuation report. Rm 22: Note that the room numbers have since been re-ordered and this room is room 20 on the valuation report. Rm 65: Note that the room numbers have since been re-ordered and this room is room C11 on the valuation report. All the rooms are included in the valuation report. Putting room 65 on the 1st floor is going to confuse a few students. All other rooms on this floor are numbered between 17 and 26 ...Or we've been given the wrong numbers Did you mean room 55? Room 65 is on the fifth floor.
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mullet
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Post by mullet on Dec 4, 2017 10:33:21 GMT
Sorry yes,55
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Post by zeverare on Dec 4, 2017 11:13:07 GMT
Well how honourable is it to cancel contracts ? If this chap or chappesse is happy to mess around former buyers then how is he going to treat FS i.e. our money You also create a hostile environment: some flats are probably sold to family or friends of those who see their contract cancelled. They might try to prevent resale.
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adrian77
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Post by adrian77 on Dec 4, 2017 11:28:05 GMT
I note this loan has almost filled so the following comment won't influence the sale
Is now a good time to sell the freehold - surely most students will have accomation for the academic year and are busy planning getting smashed revising for end of term exams now? I also note there is another similar development (same company?) being built in the same area due for completion in September. Wonder if this explains why the borrower needs the money.
Intesting one to watch
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bugs4me
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Post by bugs4me on Dec 4, 2017 13:40:18 GMT
I note this loan has almost filled so the following comment won't influence the sale Intesting one to watch Loan now filled. Another interesting one to watch from the sidelines in my case. It does strike me that lenders are falling into two camps. Those that bother or are aware of this forum and are more financially aware of the increasing P2P minefield. And those that just seem to 'invest' in anything or everything. Now maybe my strategy is wrong. Possibly I should just plonk say £500 in everything offered and just go along for the ride hoping it will all sort itself out in the wash. It would be interesting to know how others have faired adopting such a strategy but I doubt if they frequent this forum often.
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r00lish67
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Post by r00lish67 on Dec 4, 2017 13:58:21 GMT
I note this loan has almost filled so the following comment won't influence the sale Intesting one to watch Loan now filled. Another interesting one to watch from the sidelines in my case. It does strike me that lenders are falling into two camps. Those that bother or are aware of this forum and are more financially aware of the increasing P2P minefield. And those that just seem to 'invest' in anything or everything. Now maybe my strategy is wrong. Possibly I should just plonk say £500 in everything offered and just go along for the ride hoping it will all sort itself out in the wash. It would be interesting to know how others have faired adopting such a strategy but I doubt if they frequent this forum often. It would be interesting, but even if that theoretical person came along, I'm not sure we'd know. They'd be stuck with plenty of 'twilight zone' loans that are significantly overdue (but not necessarily defaulted) and many with promises of 'refinancing imminent', making the performance very sensitive to whatever assumptions one comes up with about the accuracy of FS updates. Edit: On another note, and back to topic - did anyone figure out why the VR assumes that all of these apartments are valued equally? They're all apparently worth £60k, despite the square metre range being anything from 8.0m2 to 14.5m2. Surely some must be intrinsically more valuable than others?
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mikes1531
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Post by mikes1531 on Dec 4, 2017 17:06:04 GMT
On another note, and back to topic - did anyone figure out why the VR assumes that all of these apartments are valued equally? They're all apparently worth £60k, despite the square metre range being anything from 8.0m2 to 14.5m2. Surely some must be intrinsically more valuable than others? Maybe the smaller rooms have glorious picture-window views, and the larger rooms are windowless?
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mikes1531
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Post by mikes1531 on Dec 4, 2017 17:15:14 GMT
...note that £10K is tied up in the Whitchurch and power boat loans... ... Yes I did contact the FSA because I was really unhappy with their management of the Whitchurch loan. That is a "work in progress" 09dolphin: Is it fair to presume you meant FCA rather than FSA, and Whitehaven rather than Whitchurch? If so, what sort of reaction have you had from the FCA so far? Do you get the feeling that they're seriously interested in your 'complaint'?
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adrian77
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Post by adrian77 on Dec 4, 2017 17:21:53 GMT
Liked your post - ref above -good idea - if you can afford to lose a large part of it and like to play Russian Roulette! If e.g. if you hold Wimbledon and it has a 100% loss that is a lot of make up unless you have a large portfolio....
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ozboy
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Post by ozboy on Dec 4, 2017 17:25:15 GMT
I too would be interested 09dolphin on the results of your interactions with The FCA regarding Whitehaven. I am ever hopeful that The FCA might just rouse themselves out of their permanent stupor, unlike their myriad predecessor incarnations who have, continuously and unsurprisingly, proven to be less than useless. PS / EDIT - But, as usual, The Great British Investing Public put up with it, mustn't complain.
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mikes1531
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Post by mikes1531 on Dec 4, 2017 17:36:42 GMT
I read Well how honourable is it to cancel contracts ? If this chap or chappesse is happy to mess around former buyers then how is he going to treat FS i.e. our money You also create a hostile environment: some flats are probably sold to family or friends of those who see their contract cancelled. They might try to prevent resale. Perhaps I was giving the borrower too much 'benefit of the doubt' but the scenario I imagined for the contract cancellation went something like... - Purchaser signs contract to buy, and commits to paying balance when requested by the seller.
- Seller serves notice to pay balance by specified date as per contract.
- Buyer fails to pay in time.
At that point the seller can do one of two things... - They can take the 'FS approach' and be very lenient towards the people who owe them money and haven't kept to the contract's terms -- accepting any excuse for the non-payment and giving the buyer considerable time to come up with the amount owed.
- Or they can give the buyer notice that if they don't pay up in a short time the purchase contract will be cancelled and the buyer will lose the opportunity to purchase at the agreed price.
If the developer is convinced that there's plenty of demand for the units, and that they could sell them now for a higher price than previously agreed with the non-paying buyer, I'd expect them to take the second approach, cancel the contracts, and re-sell the units.
As long as they do that within the terms of the original contracts, I don't see that as an issue.
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Post by Deleted on Dec 4, 2017 17:39:18 GMT
I note this loan has almost filled so the following comment won't influence the sale Intesting one to watch Loan now filled. Another interesting one to watch from the sidelines in my case. It does strike me that lenders are falling into two camps. Those that bother or are aware of this forum and are more financially aware of the increasing P2P minefield. And those that just seem to 'invest' in anything or everything. Now maybe my strategy is wrong. Possibly I should just plonk say £500 in everything offered and just go along for the ride hoping it will all sort itself out in the wash. It would be interesting to know how others have faired adopting such a strategy but I doubt if they frequent this forum often. I considered this option when I reviewed FS back in late summer, then I went for a walk and considered £250, then I had a drink and thought about £200. After a night's sleep I chose £0 and sell half of my undefaulted prop loans, now doing the second half. So far it is working for me. Still it makes me lend a lot on ex-military stuff etc.
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ozboy
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Post by ozboy on Dec 19, 2017 22:09:36 GMT
I think this belongs in this Topic?! :-
6 Student Rooms, Sheffield (6 separate loans)
Date/Time: Wednesday 20 December 2017 at 12 noon
Interest: 12% Loan amount: £35,000 per loan LTV: 58% Bonuses: No Cashback: No Restrictions: £500 per loan
Overview: Six, 6 month loans secured by a 1st legal charge against the freehold of six rooms from a block of 80 student rooms in Sheffield.
The intention of the borrower is to create and sell a long leasehold of each flat, proceeds from which will be used to repay this loan. The rooms are then sublet to students through a managing agent.
This is the second batch of up to 20 identical loans, each secured on a specific room. 60 of the rooms have been sold and are in various stages of completion. However, the borrower has the opportunity to refund deposits on 20 contracts which are being funded through these loans.
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