hazellend
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Post by hazellend on Aug 7, 2017 9:53:42 GMT
> Sold May 2016 for £580,000 (Before PP) > Listed Jul 2017 for Offers over £500,000 I never put too much weight on the borrower, but in this case, it may be a good idea to have a bit of a googling session Hi CD, How do you find out who the borrower is. I've read the valuation and can't see them named, although have probably missed it. I'll probably go in on this one as I live about 5 minutes away. As you can see, property prices in Paisley are slightly cheaper then south of england lol.
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hazellend
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Post by hazellend on Aug 7, 2017 10:10:17 GMT
Thanks, found it.
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dovap
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Post by dovap on Aug 7, 2017 10:25:45 GMT
always deeply reassuring when the valuer can't get the name of the S* House bit right
quite a leap in value from July innit
seems there's quite the relaxed attitude to CH submissions
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Post by mrclondon on Aug 7, 2017 10:37:01 GMT
Note paragraphs 1.70 and 1.71 of the valuation report regarding the borrower's business plan.
Para 1.70 indicates the intention of creating (probably) soon to be banned investment ground rents on 150 year leases for the student accomodation. (I am however unclear whether this would count as residential or commercial leases, whether the government will make a distinction, and whether if commercial this will need primary legislation to restrict ground rents to more sensible levels)
Para 1.71 starts "You are proposing to fund this on a short-term basis with the repayment of your facility coming from the sale of the individual units. We are of the opinion that the scheme comes with a moderate level of risk as any value of the premises for this proposed use is driven by the success of the college operation."
LATE EDIT / CORRECTION
The forcoming legislative changes concerning ground rents applies to England & Wales NOT Scotland which implemented its own ban (?) on new leasehold properties a few years ago .
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Post by mrclondon on Aug 7, 2017 10:40:28 GMT
> Sold May 2016 for £580,000 (Before PP) > Listed Jul 2017 for Offers over £500,000 (After PP) - since removed - can be seen on google cache I never put too much weight on the borrower, but in this case, it may be a good idea to have a bit of a googling session Have you found anything that gives the land area (acres / hectares) ? - I can't see rererence to this in the VR
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duck
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Post by duck on Aug 7, 2017 10:45:18 GMT
I never put too much weight on the borrower, but in this case, it may be a good idea to have a bit of a googling session So far not quite in the league of a man of the cloth from El Salvador but plenty of interesting reading!
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Post by mrclondon on Aug 7, 2017 10:55:21 GMT
Have you found anything that gives the land area (acres / hectares) ? - I can't see rererence to this in the VR On the most recent listing - 1.12 acres (approx.) Thanks. FWIW the loan of £500k is the equivalent of c. £1.1m per hectare of land. My thinking here is if the borrower is unable to secure development finance (or simply the scheme will no longer be profitable without the ground rents), the only future for this site is total demolition and rebuild with new residential properties. (The VR report makes it clear care home provision not a practicable option). So the question is, would a residential developer pay £1.1m / hectare in Paisley ? Is there demand for new build properties in this location ?
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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 7, 2017 11:01:18 GMT
MT, your copy book is in danger of possibly being blotted, we await your timely and informative usual response!
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littonowl
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Post by littonowl on Aug 7, 2017 11:12:22 GMT
Oh for a BPF loan...
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liso
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Post by liso on Aug 7, 2017 11:13:12 GMT
The Chartered Surveyors used for the VR is from London, and...... I can't help but think that a Surveyors closer to the site would have been more appropriate.
There can't be a lack of Chartered Surveyors in and around Glasgow! How about the Chartered Surveyors that marketed the property back in July (and have an office in Paisley
To repeat CD's point, it seems a surprising choice of surveyor. MT, can you explain this please?
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Post by masquedefer on Aug 7, 2017 11:14:26 GMT
Res PLots in Paisley go for about £50k which equates to about £560K/acre - assuming 14 plots per acre and 20% disccount for larger site (£50k x 14 x 80%)
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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 7, 2017 11:17:47 GMT
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copacetic
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Post by copacetic on Aug 7, 2017 11:27:28 GMT
On the most recent listing - 1.12 acres (approx.) Thanks. FWIW the loan of £500k is the equivalent of c. £1.1m per hectare of land. My thinking here is if the borrower is unable to secure development finance (or simply the scheme will no longer be profitable without the ground rents), the only future for this site is total demolition and rebuild with new residential properties. (The VR report makes it clear care home provision not a practicable option). So the question is, would a residential developer pay £1.1m / hectare in Paisley ? Is there demand for new build properties in this location ? The property is a 'Category B' listed building so I assume flattening it to build houses on would be frowned on by the local authority.
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sirius
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Post by sirius on Aug 7, 2017 11:41:56 GMT
I love this Forum and the number of knowledgable investors willing to impart and share that knowledge to lesser mortals like myself who, just when he thinks he is 'getting it' with regard to DD, suddenly finds, as with this loan, that there are yet more and more layers to the 'game'.
My sincere thanks to you all.
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SteveT
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Post by SteveT on Aug 7, 2017 11:51:00 GMT
In trying to understand on what the Valuer has based his assessment of the site's value, the only thing I can see is the statement " 1.78 I have included our values below, this is based on research from local and national agents, the schedual (sic) of accommodation and values are located at appendix II". However I cannot locate an Appendix II, unless I'm missing something obvious. MoneyThing, are you able to share any comparables that were included in Appendix II ?
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