jlend
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Post by jlend on Aug 6, 2018 6:59:49 GMT
Correct, nothing in the VR or followup letter talks about GDV.
However, what the valuer has done is based on their experience of student developments, plucked a residual value of £10-£12k per room out of the ether. Normally you would see an attempt to set out the calculation of residual value from GDV, but not in this case.
EDIT: By way of comparison have a look at the VR's for student devs on Lendy (e.g. DFL006 where the residual value is shown calculated out as £23k per room, or DFL013 Blocks A&B at £16k per room)
I'm always willing to learn from those with greater experience. However, the valuer in this case has used his professional judgement and stated a value per room based upon "other student accommodation in the North of England and Scotland" as £10k - £12k. Either you believe that he has this knowledge, or you don't. I am insufficiently cynical to believe that this is just a figment of his imagination. Perhaps happily this is significantly less than the Lendy examples, albeit in a different part of the UK. And am I not right in saying that residual value calculations are themselves problematic, so perhaps there is no surprise not used in this case? Here's hoping for a reasonable outcome, rather more likely in this instance than in some loans of which many of us are aware. Interesting to compare the 10 to 12k with the price the rooms were being sold for to investors. From one of the agent websites Units start from £50,000 up to £78,300 - contact Sxxxxxxx Wxxxxxx for more information on this student property investment. 99 rooms. At say 60k, is 5.9m. It looks like most of the rooms would have exhanged prior to the administration, having paid a 50 percent deposit. It will be interesting to see how much money is sitting in the spv given there was almost enough to pay off the loan at one stage.
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mary
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Post by mary on Aug 6, 2018 8:41:36 GMT
Interesting to compare the 10 to 12k with the price the rooms were being sold for to investors. From one of the agent websites Units start from £50,000 up to £78,300 - contact Sxxxxxxx Wxxxxxx for more information on this student property investment. 99 rooms. At say 60k, is 5.9m. It looks like most of the rooms would have exhanged prior to the administration, having paid a 50 percent deposit. It will be interesting to see how much money is sitting in the spv given there was almost enough to pay off the loan at one stage. Apparently not enough to keep paying the interest! Worrying!
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jlend
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Post by jlend on Aug 6, 2018 9:23:25 GMT
Perhaps slightly controversially, my main hope is that the investors that have parted with deposits for the rooms get their money back in full, and in a timely manner.
Otherwise this project will add to the sense that indirectly p2p funded projects tend to cause total loss of funds for off plan property investors. By funding projects such as this, p2p lenders are exposing off plan property investors to unacceptably high risks. (MT/BPF Birkenhead, and Lendy S** Building PBL120 are good examples)
Interesting to read what people were told on the agents website. This is in their FAQs What happens if a developer goes bust? In this situation another developer would step in to complete the build. Payments would have been made to the developer in stage payments so there is no loss, as the payment is in line with the construction and therefore is paid only when works are completed. How am I protected during construction? All funds are paid into the solicitor client account and only released upon sign off by the architects and surveyor inspection and certification on completion. You are protected with a legal framework and management contract assuring the rental income for a minimum period (depending on the investment structure).
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averageguy
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Post by averageguy on Sept 20, 2018 8:48:11 GMT
Update one site
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Post by MoneyThing on Oct 8, 2018 17:19:06 GMT
Evening. Update added to platform. Regards, Ed.
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mary
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Post by mary on Oct 8, 2018 17:48:51 GMT
Given the new valuation, I am very hopeful of a full recovery here, which would likely encourage me to re-start MT investments, this being my only MT default.
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cwah
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Post by cwah on Oct 8, 2018 19:35:56 GMT
Given the new valuation, I am very hopeful of a full recovery here, which would likely encourage me to re-start MT investments, this being my only MT default. How can that be a full recovery when they start advertising at half the value £600k of the valuation value? (£1.2M) With the accumulated interest + legal fee + administration fee... How is it going to reach full recovery even if £600k is achieved? It may also not reach this amount! I feel scammed...
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Post by Badly Drawn Stickman on Oct 8, 2018 20:06:04 GMT
ISTM that MT are only interested in recovering investors capital in the quickest time period. Not ideal for the borrower but who cares? The best deals will always be where nobody loses money. It could be that the borrowers mind suddenly becomes slightly more focused on somehow making that happen. The current plan also works for me, and would be happier for the borrower to lose money than me. (For a nice change to recent events)
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Post by MoneyThing on Oct 8, 2018 20:30:04 GMT
Given the new valuation, I am very hopeful of a full recovery here, which would likely encourage me to re-start MT investments, this being my only MT default. How can that be a full recovery when they start advertising at half the value £600k of the valuation value? (£1.2M) With the accumulated interest + legal fee + administration fee... How is it going to reach full recovery even if £600k is achieved? It may also not reach this amount! I feel scammed... Evening. As per the update, the property has been independently valued by two firms at between £750,000 and £1,200,000 depending on the marketing period. Also note that the property is being sold in Scotland and therefore they have a different sealed bid system. Marketing for offers in the region of £600,000 should ensure the highest number of bids whilst being at a high enough level to repay the loan in full inc. interest. Regards, Ed.
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hazellend
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Post by hazellend on Oct 8, 2018 20:54:30 GMT
Given the new valuation, I am very hopeful of a full recovery here, which would likely encourage me to re-start MT investments, this being my only MT default. How can that be a full recovery when they start advertising at half the value £600k of the valuation value? (£1.2M) With the accumulated interest + legal fee + administration fee... How is it going to reach full recovery even if £600k is achieved? It may also not reach this amount! I feel scammed... You haven't been scammed. P2P is clearly not for you.
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cwah
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Post by cwah on Oct 8, 2018 21:19:38 GMT
How can that be a full recovery when they start advertising at half the value £600k of the valuation value? (£1.2M) With the accumulated interest + legal fee + administration fee... How is it going to reach full recovery even if £600k is achieved? It may also not reach this amount! I feel scammed... Evening. As per the update, the property has been independently valued by two firms at between £750,000 and £1,200,000 depending on the marketing period. Also note that the property is being sold in Scotland and therefore they have a different sealed bid system. Marketing for offers in the region of £600,000 should ensure the highest number of bids whilst being at a high enough level to repay the loan in full inc. interest. Regards, Ed. Thanks Ed for the very prompt answer. At least it's something very appreciated from a platform. I'm hoping for a full recovery so I can invest more... And really hoping it's not one of the disaster loans I have had where valuation and sold price seems like coming from a completely different world.
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elliotn
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Post by elliotn on Oct 9, 2018 3:44:34 GMT
Given the new valuation, I am very hopeful of a full recovery here, which would likely encourage me to re-start MT investments, this being my only MT default. How can that be a full recovery when they start advertising at half the value £XXX, of the valuation value? (£X.XM) With the accumulated interest + legal fee + administration fee... How is it going to reach full recovery even if £XXXk is achieved? It may also not reach this amount! I feel scammed... We’re not recovering full market valuation (highly unlikely in a distressed sale), we are recovering our much lower loan amount (and hopefully accrued interest). If you’re unhappy with a low reserve to encourage bidders may be you took succour at the other assets available for our recovery? Edit - I’ve redacted the values provided by MoneyThing in a behind log-in update.
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Carter
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Post by Carter on Oct 9, 2018 15:21:42 GMT
I'm not in this one but always interested in how recoveries go. On the face of it the outcome looks good to recover the loan. I was surprised to see the info regarding additional assets, refreshing to see administrators uncover something that works in lenders favour for a change!
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cwah
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Post by cwah on Oct 9, 2018 16:55:22 GMT
If it recovers all my monies I'll put a stamp on moneything as a trustworthy company and invest much more!
I'm getting a bit worried these days with p2p lending. Lendy being one of the most worry-some today but who knows what will happen next
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hazellend
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Post by hazellend on Oct 9, 2018 19:30:38 GMT
If it recovers all my monies I'll put a stamp on moneything as a trustworthy company and invest much more! I'm getting a bit worried these days with p2p lending. Lendy being one of the most worry-some today but who knows what will happen next I’m not sure you should be investing more to be honest. If P2P is going to stop you sleeping well then best stay away
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