rookey123
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Post by rookey123 on Aug 3, 2017 21:15:49 GMT
I don't understand this one. According to the details the rent is sufficient to cover the interest costs. The interest costs must be around £100k p/a (depending on fundingsecure charges etc). Who is renting a 3 bed house in Poole for £8k a month?? What am I missing?
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Aug 3, 2017 21:21:22 GMT
Doesn't seem like you're missing anything.  |
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sirius
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Post by sirius on Aug 3, 2017 21:52:25 GMT
According to the Report and Valuation of April 2016, the Market Rent per annum: £30,000! So, either FS are heavily subsidising the interest payments on this loan .....are trying to say there is nothing strange in the borrower being happy to pay out c. £130-£150k interest for a year ....... are talking a complete load of bo****ks ......or...... well, this is after all an FS loan, so see if you can make up something more believable! |
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kermie
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Post by kermie on Aug 3, 2017 21:53:28 GMT
This was my instinct too - and why I chose not to renew. I find it more likely that the borrower is struggling to refinance.
FS have since added a note to the loan:
* Clarification - borrower believes the increase in property value covers any gap between the rental income and the interest charges
Which is more a bit more plausible than the rent actually covering the FS interest/fees.
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sirius
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Post by sirius on Aug 3, 2017 22:06:31 GMT
Oh! FS did not mention there was a 'new', up to date valuation. Would they be so kind as to belatedly share it with us?!
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rs
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Post by rs on Aug 3, 2017 22:17:48 GMT
Oh! FS did not mention there was a 'new', up to date valuation. Would they be so kind as to belatedly share it with us?! regardless of up to date valuation which could be completely wrong in 6 months time, the borrower has no plan of paying this loan unless they sell the property. Do not see this loan as truthful so staying well away from this loan. But no doubt the loan will be fully funded quickly.
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Liz
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Post by Liz on Aug 3, 2017 22:28:49 GMT
Oh! FS did not mention there was a 'new', up to date valuation. Would they be so kind as to belatedly share it with us?! regardless of up to date valuation which could be completely wrong in 6 months time, the borrower has no plan of paying this loan unless they sell the property. Do not see this loan as truthful so staying well away from this loan. But no doubt the loan will be fully funded quickly. This whole situation perplexes me too. I can't see him getting a cheap BTL deal, so... we could see a default.
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shuff27
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Post by shuff27 on Aug 4, 2017 4:48:48 GMT
I was happy to take the repayment & run. Now just holding powerboat, whitehaven & newcastle - suspect it'll take quite a bit longer to get out of those unscathed.
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adrian77
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Post by adrian77 on Aug 5, 2017 17:17:47 GMT
totally agree with "Do not see this loan as truthful so staying well away from this loan"
I am a landlord but getting out of this sector as soon as my last tenant leaves - what also worried me is what happens if there is a problem with the tenant?
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duck
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Post by duck on Aug 8, 2017 16:34:53 GMT
...- what also worried me is what happens if there is a problem with the tenant? Ahh you missed the giving birth tenant last year 
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mullet
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Post by mullet on Feb 7, 2018 10:02:07 GMT
This is up for renewal tomorrow.
Asking price on Rightmove is £1.05m, yet the FS valuation remains at £1.1. If there is such basic information available to the public suggesting the valuation is high, shouldn't FS be upfront and reduce the valuation?
The borrower seems to defy mathematics and come up with the interest every 6 months, but surely their funds will runs dry eventually.
I see this as more of an 80% LTV so I'm out
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steve11523
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Post by steve11523 on Feb 7, 2018 10:29:56 GMT
I agree that the FS valuation looks high. On the other hand, the house is for sale and the price achieved is very likely to be in excess of the loan value. I am in at the moment and am minded to renew.
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lucky
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Post by lucky on Feb 7, 2018 10:47:45 GMT
The valuation was carried out April 2016, would it not make sense for FS to request the valuer provide an update confirming the current value?
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r1200gs
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Post by r1200gs on Feb 7, 2018 11:07:02 GMT
I agree that the FS valuation looks high. On the other hand, the house is for sale and the price achieved is very likely to be in excess of the loan value. I am in at the moment and am minded to renew. It does appear that the bottom line is the security most definitely should cover the loan. I wonder how moveable the tenant is?
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r1200gs
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Post by r1200gs on Feb 7, 2018 11:21:21 GMT
Further research shows an increase of 5 percent in detached properties in that post code in the last 12 months, 38 percent in the last five years.
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