littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Nov 7, 2017 15:13:31 GMT
I notice that the previous thread on this loan is locked - not sure why.
Am I the only one in this loan losing patience?
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Post by bracknellboy on Nov 7, 2017 15:26:53 GMT
... Am I the only one in this loan losing patience? Quite possibly: I moved from the present participle to the past participle sometime back.
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lobster
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Post by lobster on Nov 7, 2017 15:41:17 GMT
Not personally invested in this loan but just had a look at the 1 zillion updates for interest.
Good grief - what a saga ! I would have lost patience (and my rag) a long long time ago.
Good luck with this - sounds like there is still a possibility of recovery.
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Post by mrclondon on Nov 7, 2017 15:58:18 GMT
(The previous thread was locked as it was repeatedly being trolled with incorrect information. There doesn't seem anything in there worth resurrecting) The core problem with this loan originates from the court case that lead to the hotel operating company going into liquidation - the unpaid electricity bill. The borrower appeared to be an asset stripper, who had sold off cottages in the grounds to third parties but had not split the utilities - in particular the electricity, leaving the hotel to pick up the tab for the cottages in separate ownership. Until this is resolved, the detailed due dilligence by each prospective buyer is very likely to hit the buffers when the cost of sorting out the issue is assertained. (This may have been sorted by now, but FS have never confirmed or denied the problem remains) My post of May 2016 (and the one I link to therein) contains additional background.
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bugs4me
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Post by bugs4me on Nov 7, 2017 16:08:00 GMT
Am I the only one in this loan losing patience? I think 'losing patience' is an understatement. Lost patience would be more appropriate but realistically what more is there to say. You finish up going round and round in circles like other FS defaulted loans - Turbine, Whitehaven, Powerboat, etc, etc. Whatever posters feel around these parts whether they are lenders or just forum contributors will have zero effect on the outcome as FS will do what they normally do and keep kicking the can down the road for as long as possible with the odd meaningless update. The bottom line IMO is that the platform is simply out of it's depth, competence level or whatever when dealing with defaults above a certain value. Some will always come good but is that more through luck?
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Nov 7, 2017 16:53:45 GMT
My post of May 2016 (and the one I link to therein) contains additional background. Has there been no progress in the past 18 months?
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Post by mrclondon on Nov 7, 2017 17:01:02 GMT
My post of May 2016 (and the one I link to therein) contains additional background. Has there been no progress in the past 18 months? If there has been its not obvious in the public domain. I did go through the auction packs (July 2016) but they were a depressing jumble of documents (two x 250 page pdfs, one for the hotel, and one for the "Garden Rooms" blocks). There was no coherent narrative, and quite frankly were off putting.
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adrian77
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Post by adrian77 on Nov 7, 2017 17:03:47 GMT
I have found this property on an agent's site - anybody want details then please PM me
This was itself bought from a bankrupt business and the current owners have gone bust. so maybe a warning sign there?
Also the current property for sale seems less substantial than quoted in the original valuation e.g. less land for sale?
I note the current buyer is doing more DD - well he clearly isn't stupid!
I also note he has been given an ultimatum to exchange- I deal in distressed property and anybody who gives me one invariably gets a reduced offer of 90% of my original one and that is if they are lucky!
The offer price is over £500K - and the loan (before interest) is £420,000 so that leaves £80K to cover all legal and other fees - be a bit tight won't it! I really can't see any interest being paid....
Having been involved with the London hotel saga on another platform I was hoping FS would be cautious but this does not seem to be the case so : note to self - don't touch hotels!
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SteveT
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Post by SteveT on Nov 7, 2017 17:18:17 GMT
The offer price is over £500K - and the loan (before interest) is £420,000 so that leaves £80K to cover all legal and other fees - be a bit tight won't it! I really can't see any interest being paid.... £420k is just the first loan. There is also a subsequent second-ranking loan of £100k, which seems more than likely to be wiped out.
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bugs4me
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Post by bugs4me on Nov 7, 2017 17:56:39 GMT
My post of May 2016 (and the one I link to therein) contains additional background. Has there been no progress in the past 18 months? There has been 'stacks' of progress made (according to FS) - just read the (close to 80) updates on the loan - grass doesn't grow under their feet does it! **Property was revalued at £1.1m back in June 2016. **Funds covering all capital and interest within four weeks as per August 2016. **Funds expected within 2-3 weeks as per September 2016. 'Fortunately', I'm only involved in the first loan but expect to take a hit so my current IRR with FS of 9.86% will decline. Expect those that bought into the second loan will be wiped out. No doubt there will be just a sum of money credited to accounts, the loan closed and FS will continue posting daily loan opportunities. It really is more like the old Dirty Harry movie IMO. Admin/Mods - if ** is overstepping the mark please delete.
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adrian77
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Post by adrian77 on Nov 8, 2017 23:55:41 GMT
I have had a very interesting email about this one
I wonder just how much DD FS did although I can see why the banks did not touch this one!
Although this IMHO this was a dead duck from the start and the latest owner seems to have an "interesting" track record in this business but the property is still a stunning listed Edwardian building so I wonder if the receivers have been properly supervised by FS as they are certainly running up a fat fee? What I am saying I think this property could have been disposed of well before now and nothing has been gained by this constant delay- in fact the final end price could be ever lower the more this drags on.
I left FC as I was not happy how they "managed" their property loans but FS seem to be making the same mistakes!
The powerboat looks on course for a very heavy loss - wonder if the percentage write-off will beat the 70% of the turbine? I really can't see this Welsh Property ending well and foresee yet another massive write down although I would guess 50% recovery may be achievable
If we tot up the turbine and other defaults and add expected losses from the powerboat, Knaresborough, Whitehaven etc we are talking about a serious amount of losses.
Yet another interesting one to follow - as I have said I am now very, very careful with all FS property loans and when I do invest in property it is only in initial tranches which I don't renew.
Give me more classic cars, Rolex watches, high-end jewellery etc etc!
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Nov 9, 2017 9:17:49 GMT
I have had a very interesting email about this one I wonder just how much DD FS did although I can see why the banks did not touch this one! Although this IMHO this was a dead duck from the start and the latest owner seems to have an "interesting" track record in this business but the property is still a stunning listed Edwardian building so I wonder if the receivers have been properly supervised by FS as they are certainly running up a fat fee? What I am saying I think this property could have been disposed of well before now and nothing has been gained by this constant delay- in fact the final end price could be ever lower the more this drags on. I left FC as I was not happy how they "managed" their property loans but FS seem to be making the same mistakes! The powerboat looks on course for a very heavy loss - wonder if the percentage write-off will beat the 70% of the turbine? I really can't see this Welsh Property ending well and foresee yet another massive write down although I would guess 50% recovery may be achievable If we tot up the turbine and other defaults and add expected losses from the powerboat, Knaresborough, Whitehaven etc we are talking about a serious amount of losses. Yet another interesting one to follow - as I have said I am now very, very careful with all FS property loans and when I do invest in property it is only in initial tranches which I don't renew. Give me more classic cars, Rolex watches, high-end jewellery etc etc!
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mikes1531
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Post by mikes1531 on Nov 9, 2017 16:48:27 GMT
I have had a very interesting email about this one adrian77: I'm in this loan and didn't receive any email. When did yours arrive? Or have I completely misinterpreted your comment and the email you referred to came from a source outside FS?
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adrian77
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Post by adrian77 on Nov 9, 2017 19:51:06 GMT
sorry mail was not from FS - please see details in the DD forum
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sarahcount
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Post by sarahcount on Nov 9, 2017 20:24:41 GMT
And for those of us not in the Inner Circle - shouldn't there be a redacted posting here or at least a summary of what has been discovered?
I'm not in this loan but get the impression that I'm going to get used to that left out in the cold feeling.
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