Upcoming loan #769 (Q***n Ltd P*****n S***me)
Jul 10, 2018 8:52:10 GMT
ozboy, r00lish67, and 1 more like this
Post by danielbird193 on Jul 10, 2018 8:52:10 GMT
This one went quickly onto my "barge pole" list. Some tempting highlights from the valuer's report...
So we have a property with significant flood preventing access to part of the building, water damage in the main letting area which is so bad that one of the floors has failed, and asbestos in one of the other letting areas (albeit appearing to be in good order - although neither the valuer nor AC have requested sight of an Asbestos Management Plan). This is an ex-industrial site but there has not been an Environmental Survey, and the valuer says they do not believe a Structural Survey is required!
Okay, I understand that LTV is 50% even after an allowance is made for the costs of repair or demolition of the front office unit - but repairs or demolition would require turfing out the tenants and therefore would destroy the income stream on which loan repayments are predicated. Nonsense!
Can anyone else see through all of this and find a rationale for lending at a measly 7.35%?
"the main workshop provides extremely lofty eaves and is arranged in two sections with the northerly section having a full basement underneath we are advised, however at the time of our inspection this was flooded and no access was possible"
"To the front of the elevation there are three floors of offices... The flat roof to this section has failed and we note damage caused by water penetration in the majority of floors with the upper floor being secured and floors having failed"
"The smaller adjoining single storey workshop again enjoys good height eaves... It should be noted that the covering for this is an asbestos board, however at the time of our inspection this appeared to be in good order"
"We have not arranged fore any investigations to be carried out to determine whether or not any deleterious or hazardous materials have been used in the construction of the property or have since been incorporated and we are therefore unable to report that the property is free from risk in this respect."
So we have a property with significant flood preventing access to part of the building, water damage in the main letting area which is so bad that one of the floors has failed, and asbestos in one of the other letting areas (albeit appearing to be in good order - although neither the valuer nor AC have requested sight of an Asbestos Management Plan). This is an ex-industrial site but there has not been an Environmental Survey, and the valuer says they do not believe a Structural Survey is required!
Okay, I understand that LTV is 50% even after an allowance is made for the costs of repair or demolition of the front office unit - but repairs or demolition would require turfing out the tenants and therefore would destroy the income stream on which loan repayments are predicated. Nonsense!
Can anyone else see through all of this and find a rationale for lending at a measly 7.35%?
