lobster
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Post by lobster on Apr 12, 2017 10:12:22 GMT
Was about to buy into this, but then noticed on page 7 of the VR there is no planning permission in place for the current phase of construction ?
Can that be right ? Sounds like madness to me - why on earth would they go ahead without PP having been granted ?
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SteveT
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Post by SteveT on Apr 12, 2017 10:39:05 GMT
I guess the Valuers point is that the original planning consent granted in Dec 2012 could have lapsed by 2017 unless works had been started within 3 years but, given that apparently a Non-Material Amendment to that original planning consent was approved in April 2016 then I suspect the question is redundant. Why would a Non-Material Amendment have been approved if the original consent was no longer valid?
(Edit: The Decision Notice of 12th April 2016 on the Cornwall Council planning portal confirms it. I guess the Valuer couldn't be bothered to look it up)
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lobster
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Post by lobster on Apr 12, 2017 11:18:09 GMT
I guess the Valuers point is that the original planning consent granted in Dec 2012 could have lapsed by 2017 unless works had been started within 3 years but, given that apparently a Non-Material Amendment to that original planning consent was approved in April 2016 then I suspect the question is redundant. Why would a Non-Material Amendment have been approved if the original consent was no longer valid? (Edit: The Decision Notice of 12th April 2016 on the Cornwall Council planning portal confirms it. I guess the Valuer couldn't be bothered to look it up) Yup , point taken, thanks. In which case this loan looks like a good offering - well it does to me  fundingsecure , you may wish to put an update on the loan to clarify this, because plenty of investors may incorrectly take the view than planning permission may not be in place. (see page 9 of the Valuation Report)
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oldgrumpy
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Post by oldgrumpy on Apr 12, 2017 12:52:27 GMT
fundingsecure Why haven't you done a professional job on ensuring that the correct planning permissions have been confirmed (and reported to us) for this exact property?
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Post by fundingsecure on Apr 12, 2017 15:21:15 GMT
Hello,
Regarding checking the planning, this is a standard step that our solicitors perform on all property loans. Our solicitors are waiting for confirmation that the work commenced within the statutory time period. Should there be any issues with the planning, we would have to pull the loan. However, we do not think that is likely. You will also see in the valuation report that a variation of the planning was approved in 2016, which would indicate that the original planning is valid.
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Post by fundingsecure on Apr 12, 2017 16:03:45 GMT
Our lawyers have now received the certificate of lawfulness regarding the planning.
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oldgrumpy
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Post by oldgrumpy on Apr 12, 2017 16:54:43 GMT
Thank you. I'm in ... edit: ... if you are sure about your response to my last post which said "Why haven't you done a professional job on ensuring that the correct planning permissions have been confirmed (and reported to us) for this exact property? Is the address totally wrong on the Valuation Report? That address is a very nice modern house which certainly does not look like your pictures, and cost just under £1M about three years back. It also seems to have a garage blocking the access to our actual building plot! I wonder if that has gone yet to facilitate the ongoing construction. Attachments:
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Post by Deleted on Apr 12, 2017 18:18:14 GMT
Pleased to see the update about the planning, though do wonder whether FS would have posted this without prompting from folks on here. Thank-you.
This thread is about Newquay loan 1267675573, correct? I couldn't see a loan with the id given in the thread title.
One observation - is it common for FS to cheerfully switch between 'current valuation' and projected GDV when reporting the LTV?
The 34.22% LTV stated against this £154k loan is based on a £450k current valuation. However, the description explains that this is the first tranche of a larger facility totalling £650k as development progresses. They present this finishing up with a 36.1% LTV but by switching to compare it with a £1.8M GDV.
I suppose that as development proceeds the value will approach the £1.8M, so do you more experienced investors consider this a reasonable way to present the figures? If development stalls or costs are higher than expected and the loan ends in default/recovery are investors in all the "tranches" of the total £650k treated equally?
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Apr 12, 2017 18:26:58 GMT
@thimblby normal to quote gdv. Its done all o er the place on development finance. When each loan is listed it usually gives details on ranking. Not all are equal priority. Usually lower ramking loans would offer higher interest rates.
Its a case of reading each listing carefully before investing.
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Liz
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Post by Liz on Apr 12, 2017 18:36:48 GMT
@thimblby normal to quote gdv. Its done all o er the place on development finance. When each loan is listed it usually gives details on ranking. Not all are equal priority. Usually lower ramking loans would offer higher interest rates. Its a case of reading each listing carefully before investing. Yes it's 1267675573, lobster has spent too long in the sun.
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Liz
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Post by Liz on Apr 12, 2017 18:42:12 GMT
The 34.22% LTV stated against this £154k loan is based on a £450k current valuation. However, the description explains that this is the first tranche of a larger facility totalling £650k as development progresses. They present this finishing up with a 36.1% LTV but by switching to compare it with a £1.8M GDV. All pretty normal. Each time a tranche is released FS will have a new value and hence a new LTV. It is good to know a LTV today and the final LTV. In the case yes all tranches are stated as being equal, but this is NOT always the case so best to check. If this development needs further funds over the £650 it would rank behind these tranches. The low LTV does give a lot of leeway, not always the case.
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Post by reeknralf on Apr 12, 2017 18:55:04 GMT
I guess the Valuers point is that the original planning consent granted in Dec 2012 could have lapsed by 2017 unless works had been started within 3 years but, given that apparently a Non-Material Amendment to that original planning consent was approved in April 2016 then I suspect the question is redundant. Why would a Non-Material Amendment have been approved if the original consent was no longer valid? (Edit: The Decision Notice of 12th April 2016 on the Cornwall Council planning portal confirms it. I guess the Valuer couldn't be bothered to look it up) The valuer obviously did bother to look it up because she lists the Non-Material Amendment in the VR. I don't think you have understood what she's saying, which is not to question whether there is any planning, but whether there is planning for what they are doing. While on the portal, I'm surprised you didn't look at the other planning documents, specifically the one deposed after the VR: EN16/022** | Alleged works not being carried out in accordance with approved plans PA12/067**, PA15/102** and PA16/024**; namely size and positioning of dwelling; the provision of a lower ground floor swimming pool with a pipe outlook to the cliff edge and the construction of a concrete viewing platform
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lobster
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Post by lobster on Apr 12, 2017 21:20:27 GMT
Yes it's 1267675573, lobster has spent too long in the sun. Indeed I have , oops, I accidentally quoted the asset number instead of the loan number  Note to self - never stray from the sea-bed
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r00lish67
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Post by r00lish67 on May 6, 2017 6:51:45 GMT
Just logged in to see that this one has been cancelled and our funds returned, apparently the borrower has decided not to reply to e-mails. Shame, looked an interesting one.
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michaelc
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Post by michaelc on May 6, 2017 13:48:43 GMT
Yes and great we received interest but where does that money come from?
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