mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Sept 16, 2017 16:00:21 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... 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. Inasmuch as this is a newbuild, if it defaults wouldn't that be because it never sold? Wouldn't a fire sale on a newbuild be likely to produce a better price than a fire sale on a 'used' property? Also, with an asking price so much higher than the amount due on the loan after six months, wouldn't the borrower have a big incentive to drop the price significantly so that they could sell it and receive something rather than waiting for the accrued interest to mount up further and the fees to mount up when the receivers are called in so that they'd end up with nothing at all?
|
|
|
|
Post by mrclondon on Sept 16, 2017 16:07:59 GMT
Inasmuch as this is a newbuild, if it defaults wouldn't that be because it never sold? Wouldn't a fire sale on a newbuild be likely to produce a better price than a fire sale on a 'used' property? Also, with an asking price so much higher than the amount due on the loan after six months, wouldn't the borrower have a big incentive to drop the price significantly so that they could sell it and receive something rather than waiting for the accrued interest to mount up further and the fees to mount up when the receivers are called in so that they'd end up with nothing at all? What gave you the impression it was a new build ? As far as the messy land registry sales record hold up, the borrower bought the property in 2015 (possibly for himself, possibly not), and the loan listing implies the borrower has now found a tenant for the flat (which is quite an unusual approach because both borrower and tenant would have to be 60+).
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Sept 16, 2017 16:33:28 GMT
Inasmuch as this is a newbuild, if it defaults wouldn't that be because it never sold? Wouldn't a fire sale on a newbuild be likely to produce a better price than a fire sale on a 'used' property? Also, with an asking price so much higher than the amount due on the loan after six months, wouldn't the borrower have a big incentive to drop the price significantly so that they could sell it and receive something rather than waiting for the accrued interest to mount up further and the fees to mount up when the receivers are called in so that they'd end up with nothing at all? As far as the messy land registry sales record hold up, the borrower bought the property in 2015 (possibly for himself, possibly not), and the loan listing implies the borrower has now found a tenant for the flat (which is quite an unusual approach because both borrower and tenant would have to be 60+). : [My bold above] Answer: Me not paying enough attention!  Thanks for setting the record straight. Your comment brings up an interesting question... Can someone under 60 buy such a property as a Buy-To-Let? If not, it does reduce the pool of potential buyers considerably.
|
|
adrian77
Member of DD Central
Posts: 3,920 
Likes: 4,145
|
Post by adrian77 on Sept 16, 2017 19:17:39 GMT
In my experience absolutely not due to conditions of sale - may be cases where you can but i have never seen it. Cue legal chappies telling me I am wrong!
|
|
|
|
Post by mrclondon on Dec 31, 2018 18:01:42 GMT
Bump - also defaulted today.
|
|
moist
Member of DD Central
Posts: 241
Likes: 251
|
Post by moist on Jan 25, 2019 5:13:03 GMT
listed for sale £190k
|
|
james21
Member of DD Central
Posts: 651
Likes: 669
|
Post by james21 on Jan 25, 2019 7:49:51 GMT
Valued £270k, for sale £190k. (presumably this is the property) Loan for £175k Speculation; sells for £170k less £20k for receiver, estate agent, legals. Net £150k returned to lenders Another disgraceful valuation
The 2 bed flats should have been put up for £230k, so why so low asking price? Receiver wants a quick sale to get their fee?
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Jan 25, 2019 11:02:56 GMT
Another interesting one to follow...looking at the excellent mrclondon DD linkI note it seems to be the same borrower for 5 other properties most of which seem to be in default. One seems to have sold with an asking price of £450K which is a tad under the loan I have a couple of these as yet again it was not clear to me it was the same borrower - bit puzzled why forum members need to point this out in the first place. I am budgeting to get 50% recovery on my loans here - hopefully more but time will tell... |
|
|
|
Post by mrclondon on Jan 25, 2019 12:18:59 GMT
Valued £270k, for sale £190k. (presumably this is the property) Loan for £175k Speculation; sells for £170k less £20k for receiver, estate agent, legals. Net £150k returned to lenders Another disgraceful valuation The 2 bed flats should have been put up for £230k, so why so low asking price? Receiver wants a quick sale to get their fee? It was listed for sale in October 2018 for £235k and only recently reduced to £190k.
An identically sized apartment in the same building was listed for sale at £220k, reduced to £180k and sold for just under this many many months after first being listed for sale.
It feels to me that the receivers on appointment have reduced the price to a level that might attract a buyer.
|
|
michaelc
Member of DD Central
Say No To T.D.S.
Posts: 5,722
Likes: 2,988
|
Post by michaelc on Jan 25, 2019 16:08:01 GMT
But don't they want to string it out a liitle more? If they sell it too 'quickly' they'll have to stop pocketing 'readonable' fees.
|
|
Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
|
Post by Godanubis on Jan 25, 2019 20:30:08 GMT
But don't they want to string it out a liitle more? If they sell it too 'quickly' they'll have to stop pocketing 'readonable' fees. My my you don’t have a high opinion of professionals do you ? Reputations take time to develop. Risking them for a few extra shekels is not worth it. Better do the job you are paid for to the best of your abilities and further work will follow.
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Jan 26, 2019 18:21:49 GMT
One of my accounting lecturers had worked for receivers and auditors which is not unrelated as to why he jacked it in - what he said about this "industry" was something else!
|
|
Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
|
Post by Godanubis on Jan 26, 2019 23:55:00 GMT
I had a nice Holiday in Llandudno..... In the sixties  |
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Mar 9, 2019 18:53:26 GMT
Recent update - Saturday evening
Shame I am not in the area as I am in the market for internal fittings - assuming they are not classed as stolen. I wonder if they include kitchens and bathrooms? Any guesses as to who
removed them! Easy to say but surely the assets should have been protected - maybe the lender signed a contractual obligation?
I need a drink...
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Mar 10, 2019 7:33:07 GMT
Recent update - Saturday evening Shame I am not in the area as I am in the market for internal fittings - assuming they are not classed as stolen. I wonder if they include kitchens and bathrooms? Any guesses as to who removed them! Easy to say but surely the assets should have been protected - maybe the lender signed a contractual obligation? I need a drink... No, you've got your loans mixed up (again). The thread of the loan you are looking for is here.
|
|
..mind you its got to be worth more than the loan of £175000 so might have a little flutter...
Thanks for setting the record straight.
