victors
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Post by victors on Jun 14, 2018 11:24:53 GMT
There have been 6 updates so far this year, which is fair.
The problem is they've never explained what has happened to the rental income received.
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Monetus
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Post by Monetus on Jun 14, 2018 11:44:39 GMT
I’m (sadly) stuck in this one too and yes it’s another fine example of the general incompetence of FS when it comes to managing overdue loans. The receiver hasn’t actually been mentioned in a long time looking at the updates. Quite what’s happened to them who knows - looks likely they aren’t involved anymore which is bizarre? Surely if they’ve ever going to dispose of the property in the future vacant possession would be preferable? It seems refinance is the only option on the table now and the borrower needs better tenants to get a good valuation... All seems very suspect to me and the typical FS delays where “2 weeks” really means “2 months”. FS seem to be taking the borrowers word at face value once again.... surprise surprise! And yes... what on earth is happening to the rental income fundingsecure? |
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Monetus
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Post by Monetus on Jun 14, 2018 11:49:23 GMT
It is the fact the updates are contradicting, changing story all the time and at the end not believable any more. Welcome to Funding Secure!
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adrian77
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Post by adrian77 on Jun 14, 2018 12:19:48 GMT
totally agree with the above - luckily I am not in this one but I am adding it to my top 10 of FA league of predicted spectactular failures.
There is no mention of the renovation costs, rates etc, the architect's fee which would not have been £15 per hour and worse of all NO DETAILS ABOUT THE LEASES - how long to run, any restrictions etc etc. This whole thing strikes me as amateurish in the extreme - and Yes ;why has the rental income not gone to FS! I also don't believe the owner would be allowed to re-rent the shop as I think this would be illegal given that he is in administration
I am feeling dizzy now - think it is whitehaven/7 sisters syndrome
Gordon Bennett!
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adrian77
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Post by adrian77 on Jun 14, 2018 12:25:35 GMT
well we have all heard that one before! Well done FS yet another one flagged up to all local developers as a lemon going cheap...
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Monetus
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Post by Monetus on Jun 18, 2018 10:47:36 GMT
The lack of updates on this one is also immensely frustrating. Nothing since 30th April so what's going on fundingsecure ? Reading prior updates I wouldn't be surprised if the mysteriously vanishing "cash buyer" was actually a friend of the borrower. It all seems like a big grand scheme to buy time and delay enforcement of the loan while the borrower seeked refinancing. What on earth has happened to the receivers and where is the rental income? |
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adrian77
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Post by adrian77 on Jun 18, 2018 11:01:27 GMT
neither would I - I am in this game and seen this on several occasions...there are plenty of sharks in this world and after meeting FS and seeing just how much they were out of their depth they doubtless smelt blood...
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Monetus
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Post by Monetus on Jun 18, 2018 14:20:31 GMT
FS updates team are on the ball today!
"Commercial tenants are now in the property and have completed their own improvements. Bedrooms have all been repainted and 5 rooms have been let. Lettings provider has a potential block deal of around 10 and is visiting the property tomorrow. If this goes ahead, then a valuation will be arranged prior to refinance."
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Monetus
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Post by Monetus on Jul 13, 2018 8:33:39 GMT
The silence is deafening in this one.... anyone else stuck in it?
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Steerpike
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Post by Steerpike on Jul 13, 2018 9:18:28 GMT
I am glad to say that I have only a token sum in this "unredeemed" loan.
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22/07/2017 The current borrower has been unco-operative and we are therefore commencing default proceedings in the knowledge that we have a committed buyer.
29/07/2017 We are in the process of appointing receivers. This loan is therefore being reclassified as a default.
12/08/2017 Receivers have been formally appointed
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It seems that "default" does not mean the end of negotiations between FS and the borrower or that a third party entity will take sole control of the prompt realisation of the asset.
The update policy on this one seems to be to chuck the investors a different coloured rubber bone every 4 or 5 weeks and, um, that's it.
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6.2.2 FundingSecure may, at its discretion, find a private buyer for the Assets instead of sending to auction providing that the price achieved exceeds fair market value.
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6.4 FundingSecure does not guarantee the period of time taken to dispose of an Asset and realise proceeds for reimbursing the Investors.
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There is no case for complaint, FS have absolute discretion over what action they take, or do not take, and how long it takes.
Interest continues to accrue.
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sb
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Post by sb on Jul 14, 2018 10:38:57 GMT
The silence is deafening in this one.... anyone else stuck in it? I am in this one. The whole situation with this loan seems fishy now. Why is the property still being controlled by the borrower? Why isn't it on the market? What happened to receivers? I've done a quick internet search, found only one flat advertised for a rent, supposed to be finished to high quality but it looked pretty rubbish, there is also an ad for a summer school at this address. Based on similar properties sold in this area I doubt the whole building would sell for more than 500k My strong advise to anyone investing with FS is to sell loans on the SM market before their maturity. I've initially let them mature and I am now left with Whitehaven and this one (at least for this one the collateral looks better than a hole in the ground). Of course this is unethical and the strategy won't work if everyone adopts it. In my case this doesn't matter as I don't invest with them any more.
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Monetus
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Post by Monetus on Jul 18, 2018 11:45:36 GMT
Well what a shock.... our borrower has apparently neglected fire safety regulations during his wonderful refurbishment and we're now back to further repairs needed! Don't forget that on 28/03/2018 the borrower "expected to be able to start viewing in 2 weeks and to have have the valuation done after a further 2 weeks."
Latest update:
"Unfortunately, following a fire safety inspection, a number of defects were identified which necessitate immediate corrections. This has therefore created a delay of 2-3 weeks as the valuation needed for the refinance can only be done once a decent proportion of the rooms are let. Additionally the 5 tenants that had previously signed up have not been able to move in. Borrower is confident of being able to relet all rooms quickly once repairs are completed."
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adrian77
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Post by adrian77 on Jul 18, 2018 13:10:32 GMT
Well they must be pleased about that - why wasn't the fire inspection done before offering the rooms - could this possibly be a total load of horlicks to play for time? You never know!
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sb
Posts: 166
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Post by sb on Jul 18, 2018 20:09:58 GMT
To visualise what we are talking about  The agent description: "Lps is delighted to bring to the market a selection of studio apartments situated on the High Street of ******* Liverpool. Superbly finished to a high standard all with en-suites and bills included. Prices start from £99.00 pppw. The communal areas to the building include TV lounge, modern kitchen and laundry room" |
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adrian77
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Post by adrian77 on Jul 18, 2018 20:51:34 GMT
it's a bedroom - they want how much!
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