I'm more inclined to believe the second charge holders' estimate of £150k to complete than the borrower's £20k to complete, though the reality is probably somewhere in between: Borrower likely to understate on the basis of: 'So nearly there, only £20k to go. Please don't default and have the receivers inspect the state of the build!' 2nd Charge holder likely to overstate to better justify their offer.
Either way, if it's not finished then it's not worth £1.6m
And there's another potential issue... Who say's it's actually worth £1.6m even when it is finished? The Borrower? FS? RICS valuer? Not an impressive line up when it comes to track records in P2P-land. There's going to be a cut-off point where it's not worth the 2nd charge holders time and effort to recoup whatever amount it is they have secured against the property.
Maybe the Administrators can squeeze a bit more out of the 2nd charge holder. Maybe the 2nd charge holder will hold their ground. Maybe the property will end up at auction, and sell for less. Possibly to the 2nd chg holder! ( Via an agent, of course )
I note from the minutes of the CC meeting that the Administrators are potentially getting post-disposal valuations to gauge the potential for claims against the original Valuers. Might it be an idea to get a valuation before disposal to validate whether offers such as this one of £950k actually have any merit or not? ( As well as suing the a2ses off the original valuers as well, obvs )
Maybe the Administrators can squeeze a bit more out of the 2nd charge holder
I would tend to agree with this - unlike FS they seem to realise when they are in a bad position - question is which will realise the more money - a fire sale or this offer - I like fire sales - I like 2nd charge holder offers - which is better - FIGHT!!!