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Post by mrclondon on Sept 15, 2017 21:49:54 GMT
Suggest a sensible bit of DD is to stick the post code (from VR) into google, and pull up the rightmove list of sold prices.
Some bizzare jumps 2014 to 2015 from new build to first sold. Possibly irrelevant but nevertheless odd.
Our apartment is lsted as last sold for £279,950 on 06 Mar 2015 but given the overall data quality, may be not.
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peteuk
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Post by peteuk on Sept 15, 2017 21:58:00 GMT
Cant find any flat over 250 in Llandudno maybe yet another vastly inflated valuation
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Post by mrclondon on Sept 15, 2017 22:05:55 GMT
These are over 60s retirement flats managed by one of UK's leading providers of such (see section 10 of VR), so some brand name premium may be appropriate here.
The £270k valuation* equates to £285 per sqft which is inline with the comparables.
* desktop only no site visit
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peteuk
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Post by peteuk on Sept 15, 2017 22:17:10 GMT
Well as i see it the valuation as they state is desktop nobody got off there backside and even had a look, you are very weecome to this one
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sandbrain
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Post by sandbrain on Sept 15, 2017 22:17:41 GMT
I have found on Rightmove a "2 bedroom retirement property for sale, G******* Street, Llandudno" for £220k in a familiar-looking purpose-built, four storey development...
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Post by mrclondon on Sept 15, 2017 22:20:58 GMT
I have found on Rightmove a "2 bedroom retirement property for sale, G******* Street, Llandudno" for £220k in a familiar-looking purpose-built, four storey development... Yes, same block. And it was listed on rightmove in February 2017 so (very) slow to sell. Doesn't say what the sqft is though But does say "Please note that the car parking spaces are rented and there is a waiting list for residents waiting for these spaces."
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Post by mrclondon on Sept 15, 2017 22:34:24 GMT
I'm struggling to put a distressed sale value on this. Over 60's on the whole are not going to be keen to buy at auction, there is evidence apartments in this building are slow to sell - there is a 1 bed reduced thats been on since the spring as well as the 2 bed previously mentioned.
The only positive is its a small loan and should be easy to resell in month 5.
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Post by mrclondon on Sept 16, 2017 0:07:25 GMT
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rs
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Post by rs on Sept 16, 2017 7:44:24 GMT
Wales has plenty of sheep so I reckon this flat will fall in value over time even though retirees would like to move to wales due to the soft feel of wool as plenty of it in wales. This loan will fund before the end of the day.
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ianj
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Post by ianj on Sept 16, 2017 7:44:34 GMT
My personal experience of selling my mother's retirement flat was broadly in-line with the BBC article, and was quite a sobering experience. Purchased new in 2000 for £200k, it realised only £176k in 2014 (from which the managing agents were entitled to a contractual 2% fee) despite being in almost pristine condition, and at a time when prices achieved for 'normal' property had increased considerably over the same period in that area.
According to my mother's solicitor, there had been an upsurge in new retirement complexes in the surrounding area in the intervening years leading to supply outstripping demand. He also went on to say that despite always advising prospective purchasers that this type of property would probably not be a good financial investment, especially when bought new, but the allure of the latest comforts and conveniences available in newer units very often seemed to outweigh financial considerations.
It the six months it took to find a buyer I saw the latest retirement complex, about three miles away, selling quickly, prompting me to think that no estate agent could compete with the McCarthy & Stone marketing machine.
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rogerthat
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Post by rogerthat on Sept 16, 2017 10:04:23 GMT
Lots of 1K bids...even got time to pop back onto the forum mid auction...£1/4m for a flat ? in Llandudno  ..mind you its got to be worth more than the loan of £175000 so might have a little flutter..stuck on 51%...52%  ..55%  Well..this may well be here tomorrow..think that is representative of the general feeling about this one.. |
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Post by badboyyardy on Sept 16, 2017 10:21:28 GMT
Yeah another dodgy valuation but for a 1st charge will take my slice.....
1k bid restriction on a Saturday - perhaps this the way you do all your big loans FS
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sirius
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Post by sirius on Sept 16, 2017 11:02:50 GMT
Well, I am guessing c.£180k for a distressed sale, so I will definitely not be in this one.
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Post by mrclondon on Sept 16, 2017 11:05:00 GMT
Lots of 1K bids...even got time to pop back onto the forum mid auction...£1/4m for a flat ? in Llandudno . .mind you its got to be worth more than the loan of £175000 so might have a little flutter..stuck on 51%...52% ..55% Well..this may well be here tomorrow..think that is representative of the general feeling about this one.. Yes, BUT !! Lets say that it takes 18 months to complete a recovery strategy on default. With the 6 month in term accrued interest you are looking at potentially 2 years of interest (plus FS fees) on top of the capital, as well as recovery fees. Possibly approaching an extra £60k, in which case the headline sale price would have to be £235k for a full recovery. I'm not convinced £235k is achievable as a distressed sale value so I'm skipping this one.
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rogerthat
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Post by rogerthat on Sept 16, 2017 12:17:16 GMT
I was assuming that as this is the 1st charge...and a renewal of this loan is probably likely..6 months and then deploying the parachute, if required, would be a relatively safe stance..ive certainly not incurred a run on my bank with my flutter and I never auto roll over..In hindsight of my previous post perhaps what I meant to say was that I feel that its good for what the loan amount is currently for..i.e £175K
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..mind you its got to be worth more than the loan of £175000 so might have a little flutter..stuck on 51%...52% 
..55% 