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Post by Deleted on Dec 13, 2017 17:10:08 GMT
Interesting to see the supporting evidence letter of additional valuation. Read it carefully and frankly it can be read a number of ways. So I have some questions, I don't mean them to sound annoyed as I feel light hearted about the whole thing 1) Does this constitute advice and can MT sue over it? 2) That additional money may have been spent does it mean the value of the property has gone up? (It never seems to work that way when I sell a commercial property) 3) My guess at an interpretation is. "The owner has asked us to agree to a schedule that we have spent £x, they provide no evidence, but if we could be bothered to get over there we could add up some receipts that would prove their view or we could visit and come to a similar view but no one has paid us to do that". 4) Is this "level of professionalism" standard practice in the industry? I mean, they did expect people to read this thing?
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Carter
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Post by Carter on Dec 13, 2017 18:01:26 GMT
Interesting to see the supporting evidence letter of additional valuation. Read it carefully and frankly it can be read a number of ways. So I have some questions, I don't mean them to sound annoyed as I feel light hearted about the whole thing 1) Does this constitute advice and can MT sue over it? 2) That additional money may have been spent does it mean the value of the property has gone up? (It never seems to work that way when I sell a commercial property) 3) My guess at an interpretation is. "The owner has asked us to agree to a schedule that we have spent £x, they provide no evidence, but if we could be bothered to get over there we could add up some receipts that would prove their view or we could visit and come to a similar view but no one has paid us to do that". 4) Is this "level of professionalism" standard practice in the industry? I mean, they did expect people to read this thing? This has to be some sort of joke right? Borrower can't add up and now needs more money but don't worry they've apparently spent some money on something and increased the value of the asset by the same magic amount. Come on!
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Post by eascogo on Dec 13, 2017 18:03:29 GMT
MT should confirm they have seen evidence of the £330,000 spent on the property. Also details of what work needs to be done to finish the job would be welcome. Would the ventilation issue raised by the council be likely to add to costs? The previous update two days ago has dented lenders' confidence in the main tranche of the loans. At the moment some £200k is offered for sale. Some further information would be welcome to settle nerves. The bit limit for this second tranche has been set at £750. I'm not sure this is sufficient to offer comfort.
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jlend
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Post by jlend on Dec 13, 2017 18:32:13 GMT
It does feel surreal the loan has ended up like this
The update on the 23rd October said tenants would be setting out their retail offering on the upper floors from the following week ready to open shortly after.
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michaelc
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Post by michaelc on Dec 13, 2017 18:37:57 GMT
Well, I'm glad to see the rose tinted (or should that be sugar coated?) specs have been put down by many folk in this part of the forum. I shall not be wading in anywhere close to either of the two latest offerings.
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7d7
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Post by 7d7 on Dec 13, 2017 19:05:10 GMT
The letter leaves me completely bewildered. Why is the valuer not interested in inspecting the property? Is it not their duty to verify expenditure in order to produce a sound valuation? Or is it standard practice for valuation reports to be based on assumptions? I wonder as I have observed this over and over again.
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Post by eascogo on Dec 13, 2017 19:30:48 GMT
The letter leaves me completely bewildered. Why is the valuer not interested in inspecting the property? Is it not their duty to verify expenditure in order to produce a sound valuation? Or is it standard practice for valuation reports to be based on assumptions? I wonder as I have observed this over and over again. MT requesting valuer to moderate their fees, hence a "trimmed-down" report?
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stokeloans
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Post by stokeloans on Dec 13, 2017 19:34:44 GMT
Moneything taking tips off Funding secure
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mary
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Post by mary on Dec 13, 2017 19:37:45 GMT
I'm thinking that a good dose of cashback will be required now that they've missed the holiday peak period.
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Post by eascogo on Dec 13, 2017 20:08:45 GMT
Moneything taking tips off Funding secure I hope not. FS regurgitates loans by the dozen, MT is at the opposite end. FS is desperate for growth whereas MT is emphatically modest though latest, largish, loans raise some concern about quality.
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jjc
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Post by jjc on Dec 13, 2017 20:46:01 GMT
The letter makes reference to a valuation dated 2nd Nov, which I don't recall us seeing. SophieThing ? I hope I am right in presuming that the "receipt of evidence" promised in the 11th Dec update has been duly kept to, as fine gentleman (or true ladies) would have mentioned otherwise were that not to be the case. Wrt the site visit whilst the more visits the better (ofcourse) it’s not an aspect that hugely concerns me tbh. I’d rather the site is PROPERLY visited (by MT & qualified surveyor) at the end of Jan when works are meant to be complete. At that time Ed can have a good long chat with the borrower, whilst going thru the tenancy schedule & rent receipts in all their minutiae, & perhaps take a visit to another nearby emporium to see how things work there?
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Post by Badly Drawn Stickman on Dec 13, 2017 22:59:55 GMT
From memory, this one limped painfully over the line at 13% with 1% cashback. There is currently just shy of 200k on the secondary market. The overall deal has been seriously compromised by not being open and trading over the Christmas period, given the original exit strategy. Is a bid limit really wise?
Surely the sensible approach here, given that not trying to get the project up and running isn't really an option, to make this current offer 'seriously attractive' from a rate or cashback point of view.
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elliotn
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Post by elliotn on Dec 14, 2017 2:10:57 GMT
The letter leaves me completely bewildered. Why is the valuer not interested in inspecting the property? Is it not their duty to verify expenditure in order to produce a sound valuation? Or is it standard practice for valuation reports to be based on assumptions? I wonder as I have observed this over and over again. It is certainly 7d7 .
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bababill
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Post by bababill on Dec 14, 2017 4:17:38 GMT
No need to be concerned. Interest is being paid from the rental income.
I quote "Interest will be covered by the expected rental income from the tenants. "
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elliotn
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Post by elliotn on Dec 14, 2017 4:34:03 GMT
No need to be concerned. Interest is being paid from the rental income. I quote "Interest will be covered by the expected rental income from the tenants. " Thankfully the borrower only required one month’s retained interest before opening for its tenants.
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