ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 20, 2019 10:00:58 GMT
Thanks. A request not a demand. The information provided by FS is rather lacking in detail. So if it defaulted & took 5 years to finalise,the £2.75 million at 12% compounded ends up at £5 million. The GDV is £8.1 million, So there is £3 million to play with, for over valuation, forced selling & liquidation costs. So is that a fair risk ? Is FS a fair risk?
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 20, 2019 10:05:39 GMT
I deal with some very dodgy people in my line of work and that is why I am very careful when parting with my money let alone that of other people. This was not a sophisticated fraud and should never have happened in the first place . As I see it FS were wined and dined given a load of flannel about future leads and they were stupid enough to fall for it hook line and sinker - the old ones are the "best" or rather worst ... If this one goes pear shaped which I think is inside the realms of possibility then that is £2.3m down the swanny at a single stroke and considering it was 7 or 8 loans then how many of us are going to take a hit? Ref defaulted loans - it is not only the number which is important to me but the size of them and there sure are some real biggies which are looking a tad problematical e.g. Gainsborough. You are absolutely correct adrian77 . Even by FS' low standards this is an even newer low. The items should always have been in FS' possession, under lock & key, as per their Ts & Cs. And people still invest with this lot? Incredible.
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adrian77
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Post by adrian77 on May 20, 2019 10:35:56 GMT
thanks - as Confucius said "wise man takes security for all goods - man who accepts an IOU for £2.3m when half-cut is a right pillock" (translated from the ancient Mandarin)
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iRobot
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Post by iRobot on May 20, 2019 11:27:25 GMT
FS - and P2P platforms in general - have shown themselves to be incapable of successfully 'bringing home' development loans on anything like a regular enough basis to be considered as viable investments. So, no, IMO it's not a fair risk. (I don't think there's an interest rate that's viable to the borrower which would make it a 'fair' risk for me.) Rules of P2P lending: No Development Loans No 2 nd / 3 rd / n th 'ranking' loans
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on May 20, 2019 12:23:59 GMT
FS - and P2P platforms in general - have shown themselves to be incapable of successfully 'bringing home' development loans on anything like a regular enough basis to be considered as viable investments. So, no, IMO it's not a fair risk. (I don't think there's an interest rate that's viable to the borrower which would make it a 'fair' risk for me.) Rules of P2P lending: No Development Loans No 2 nd / 3 rd / n th 'ranking' loans iRobot That is a sweeping statement. Assetz Capital do know how to deal with development loans, full monitoring surveyor report at each release of tranche funds.
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iRobot
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Post by iRobot on May 20, 2019 15:31:20 GMT
iRobot That is a sweeping statement. Assetz Capital do know how to deal with development loans, full monitoring surveyor report at each release of tranche funds. Yes, it is. Massively sweeping! (And it may be argued that AC is the exception which proves the rule? ) I was thinking more of the self-select platforms (which I appreciate AC can be) such as Lendy and MT, as well as FS. Strangely, AC didn't cross my mind when I typed the earlier comment, even though I have a five-figure sums with them. As it's in their 'Access' products, I'm pretty oblivious to the flavour of loans I'm exposed to.
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rocky1
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Post by rocky1 on May 20, 2019 16:09:11 GMT
section 106 developer cont £14025 for loss of bowling green and £155975 for loss of public space.
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baldpate
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Post by baldpate on May 20, 2019 17:14:18 GMT
The Assets tab promised that "Additional pictures have been added showing the progress of the development" ; these have only just been added. They can be found in the Files tab of the new loan tranche. I'm underwhelmed at the progress they show.
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adrian77
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Post by adrian77 on May 21, 2019 9:44:35 GMT
have looked at the excellent mrclondon DD - I can't find any accounts that show proof there are readies in the bank to develop this plot. This does not mean there aren't any? The valuation seems a bit high to me but I think the land will just about cover the loan. What I have done is looked at the director's 6 companies. 3 have been subjected to a compulsory strike off - 2 earlier this year and one last year. In addition a further order has been discontinued. The address given for this director shows a roofing company and 3 other building companies...
Will be interesting to see if this one is able to renew next month.
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iRobot
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Post by iRobot on May 21, 2019 11:23:24 GMT
have looked at the excellent mrclondon DD - I can't find any accounts that show proof there are readies in the bank to develop this plot. This does not mean there aren't any? The valuation seems a bit high to me but I think the land will just about cover the loan. What I have done is looked at the director's 6 companies. 3 have been subjected to a compulsory strike off - 2 earlier this year and one last year. In addition a further order has been discontinued. The address given for this director shows a roofing company and 3 other building companies... Will be interesting to see if this one is able to renew next month. Isn't that what the development tranches are for? " ... of a facility for up to £2,750,000 against a GDV of £7,200,000." From the latest tranche (7457230714, £100,000): The first tranche was for £1,234,000 loan ref 3058202213. The second tranche was for £35,000 loan ref 2580005339. The third tranche was for £150,000 loan ref 1636706425. Would be more concerned by the revision of 20 dwellings down from 29. OK, they'll be larger and apparently will be more marketable, but is there a revised VR (or three) confirming that? I also note that a number of dwellings are indicated to be on 'Private' roads. If correct, might impact valuations marginally. Ooops, just spotted revised VR. (Although I think the Private road point still stands as the VR assumes all roads will be adopted. Probably marginal difference though.)
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criston
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Post by criston on May 22, 2019 14:16:51 GMT
Gave it a miss in the end. I see someone helped finish it off with £25000.
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adrian77
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Post by adrian77 on Jul 13, 2019 9:24:07 GMT
well I can't see it - another interesting one
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markyg61
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Post by markyg61 on Jul 17, 2019 12:28:19 GMT
well I can't see it - another interesting one
16/07/2019
The borrower has confirmed refinance offer with a lower cost lender to complete the development and has provided a copy of the term sheet. Final due diligence is underway to complete the refinance.
A further update will be added as the process continues.
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Post by mrclondon on Aug 30, 2019 23:32:11 GMT
The photos attached to a loan listing a few months back included one of the site hoarding. In fact the hoarding runs the full frontage of the site in high gloss art work. Eye catching certainly. (I've posted a couple of photos in DDC). The site is the edge of an elevated ridge, and the land falls away to the valley floor some distance below. Hence the plots at the back of the site will have good views over the plain below (though semi industrial in reality). However the plots at the front look across to a parade of shops with most units shuttered up ... just a small convenience store by the looks of it. At around 11am this morning there was a fair amount of activity on site, with a JCB trundling around. The initial plots are those fronting Col********* Avenue on the RH half of the site: Its possible to walk down the RH side of the site (Tall wooden hoarding) to the back where the fencing is open mesh: Providing the finished properties aren't over priced, it feels a sensible enough development site.
Still leaves unanswered / unanswerable questions regarding the possible connection to the partially recovered Cheshire barn loan. However as someone commented recently, they may have aborted that project when they secured this site which feels a much lower risk development.
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rocky1
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Post by rocky1 on Sept 7, 2019 16:49:16 GMT
the development will be carried out in stages with each stage being sold to reduce lending and fund the next part.what is/has been sold and is a stage a tranche.so this is the 7th tranche of £2.75m with just under £1.7m drawn down when tranche 7 fills.is a tranche a stage and how many stages have been sold to fund the next part.could someone enlighten me please as to what this means.
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