L*** St, M**chester WITHDRAWN

Id better get in quick then with someone else's stick !..job done 

is this another wind-up?

 I have read the building report and it is just depressing and that is excluding any structutal survey; graffiti, vandalism, lack of security, dispute over vehicle access, mega problem with the stairs - no idea if they are fire compliant. The rental income seems less than the interest to me so not convinced it is a sound business model. Might seem a funny thing to say as a landlord but tenants have the right to decent accomodation so not only would I not let such a property I would be worried about enforcement notices (rightly) being served. I  wonder how many of the tenants are actually paying the rent. The building structure looks extremely poor to me and there seems to be a new development next door. The refurbishment could be cosmetic (I doubt it) and only moderately expensive or it could be out of the stratosphere expensive and completely sink this project but time will tell.

I am staggered a 1.4m loan is being offered without the title being examined or a structural survey beind done - I don't want any part of a scheme that offers such accomodation to tenants regardless of profitibality.

I wonder why some of the creditors (including major UK banks) that lost out aren't queing up to lend on this one cheaper than FS? Although this one looks another FS property disaster to me but what do I know. 

These directors seem to ring a bell - they may be different people but they both have professional jobs which aren't that common. I wonder if they live in such poor accomodation ?

Time for the mother of all thrashings from Mr Smutty!

Well, looking at the photographs in the valuation report, if these are, I assume, the better apartments, goodness knows what the inaccessable ones look like

What on earth is that in the bath of 2 Browning Street – Flat 8 – Bathroom???

The place is a tip & needs demolished

I don't know, but it looks like an implement capable of causing enough harm to someone to create the blood stain on the kitchen in Flat 1.

Still, despite this being clearly a hugely challenging and complex project with probably endless legal and logistical difficulties,  we can always rely on the expertise, diligent oversight and minute attention to detail from beginning to end by our trusted lending platform and valuation team.

Things such as the fact that KM have "not inspected any title documents or leases" and "consider it essential to have these formally verified" can of course be taken as read to have been addressed with a fine toothcomb, despite not being mentioned in the extensive 5 sentences that FS have used to describe the asset to us.

Meanwhile, the lack of structural survey for an asset valued at £2.34m combined with KM's specific view that the presence of deleterious materials in the building cannot be reported as "free from risk in this respect" has been neatly counterbalanced by simply making the valuation assumption that nothing bad would be found if we looked. Which simplifies things for us investors very neatly.

I better pace myself here - need to review the detailed refurbishment plan, check for appropriate milestones etc. On, hang on, there it is in sentence 2 of the loan description - they will "begin refurbishment and renovation works". Excellent - begin. Sounds exactly like what they need to do.

And once they have all of the money,  Sentence 3 goes on to confirm that they will apparently "continue and complete it". Start, finish, what more do we need?

Is there a way to mark on FS that you never want to invest in a loan/secondary market piece etc?

This looks the best option to me but as no detailed costing/structural evaluation has been done it is impossible to say whether this would be cost effective. But on the other hand I am not convinced a full renovation would be cost effective either. I would value 25 poor quality flats at £20K each tops so that is £0.5m for the building giving an LTV of 200%. As a developer myself I am not convinced I would pay £200K for it!   Complete and utter horlicks all round - pound to a penny this one will soon be back on the forum. 

well, yes, I understand that, but it would be useful to mark yourself a comment on the loan- as there are quite a number of loans (especially in the SM), rather than keep a separate list of what looks inviting/what never to invest in. Especially for people like myself that only ever put in the minimum in loans.