bg
Member of DD Central
Posts: 1,368 
Likes: 1,929
|
Post by bg on Jan 26, 2019 23:31:10 GMT
I only own 5 houses (bought 4 with cash) so thanks for the patronising lecture - like to think I have some idea what I am doing and I paid exactly zero deposit for my last 3 houses - have a very good solicitor. Yes of course, you say you are experienced with many developments under your belt but you really seem to struggle with the basics. You keep on talking about a bridging loan for £119k......the FS loan is the bridging loan. The are using this loan to bridge until they get the mortgage. That's what FS do, they offer bridging, development and pawn loans! You guess there is stamp duty to pay @ 8% - wrong rate, check your calcs. You are wondering why the buyer is buying right now - he isn't, he exchanged on this flat 18 months ago, standard practice when buying off plan, read the valuation report. You say the developer has charged ground rent and service charge from the date of exchange....complete rubbish, its been charged from date of completion which is standard practice (that anyone who has bought an off plan property would know - I can show you dozens of completion statements of my own). Look at the completion statement that is attached to the loan. You say you are so experienced that when you buy a new build off plan you don't have to pay anything but a "nominal" deposit. Complete rubbish, if you go to a big developer and say you're not paying a deposit they will laugh in your face. I would love to say I am not paying a deposit on lots of flats and then decide some years down the line when they are built whether I want to complete or not depending on whether the price had gone up (with zero risk). These last 3 off plan "houses" you bought - who were the developers? If people could buy off plan houses with no deposits then clearly they would all walk away if there was a price fall between exchange and completion (which is what has happened here). It's just not how this process works, solicitors have nothing to do with it. I reckon you know more about powerboats than buying off plan!
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Jan 26, 2019 23:35:20 GMT
thanks - I missed that - guess that is a small plus- still an interesting one which I find difficult to call... Yes I'm thinking to put some ££ on it from BG insights. Although this is not the type of flat I would buy myself and is targetting the upper market Please don't on account of me. It's just my opinion and I do get them wrong. I am just more comfortable investing in this loan as it's ground I feel familiar with having bought a number of off plan flats in the area........even so I have only put a few grand in which is part of a well diversified portfolio....I won't lose any sleep over it. PS - in London this is not the upper market. For a 2 bed flat in zone 1 this is cheap.
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Jan 27, 2019 9:40:23 GMT
not very polite - as I said I deal in cash and funnily enough cash strapped developers (granted I don't think these ones are in this boat) often seem keen for some instant readies. Hopefully the receivers for Formby etc (I am in that one) won't laugh at any serious cash offer! As I said I have passed details for the FS defaulted loans to one of my colleagues who sadly has vastly more money than I do...I only invest my own money so am not talking my book
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Jan 27, 2019 10:17:09 GMT
not very polite - as I said I deal in cash and funnily enough cash strapped developers (granted I don't think these ones are in this boat) often seem keen for some instant readies. Hopefully the receivers for Formby etc (I am in that one) won't laugh at any serious cash offer! As I said I have passed details for the FS defaulted loans to one of my colleagues who sadly has vastly more money than I do...I only invest my own money so am not talking my book I think you are misunderstanding what off-plan is. An off-plan purchase is a purchase when the development has not been built. All there is are the plans (hence the name). You don't complete until the development is complete which for big developments is usually years in the future. You have to put a deposit down to be able to exchange. If you are buying an off plan purchase for instant readies then by definition you are putting down a big deposit. Think about it.
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Jan 27, 2019 13:31:57 GMT
whatever.
|
|
song
Member of DD Central
Posts: 83
Likes: 115
|
Post by song on Jan 27, 2019 14:59:34 GMT
not very polite - as I said I deal in cash and funnily enough cash strapped developers (granted I don't think these ones are in this boat) often seem keen for some instant readies. Hopefully the receivers for Formby etc (I am in that one) won't laugh at any serious cash offer! As I said I have passed details for the FS defaulted loans to one of my colleagues who sadly has vastly more money than I do...I only invest my own money so am not talking my book I think you are misunderstanding what off-plan is. An off-plan purchase is a purchase when the development has not been built. All there is are the plans (hence the name). You don't complete until the development is complete which for big developments is usually years in the future. You have to put a deposit down to be able to exchange. If you are buying an off plan purchase for instant readies then by definition you are putting down a big deposit. Think about it. Boy"s a little knowledge is a dangerous thing.
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Jan 27, 2019 15:31:37 GMT
I may have misunderstood this one - I thought this one was just up for sale - if this chap bought this one a while ago then I was mistaken (no need to be unpleasant). If this is the case then it strikes me the UK market has moved against him (I don't buy in London so don't know the market although the above estimates of a reduced sales value strike me as perfectly reasonable). If this is the case then this chap has to either forgo his deposit or plough on with this bridging loan and hope he can soon get cheaper financing and/or a cash injection. Of all the interesting loans this one is my favourite closely followed by the park homes albeit for different reasons.
I will ask FS tomorrow what the situation is with the stamp duty.
|
|
Doc
Member of DD Central
Posts: 196
Likes: 211
|
Post by Doc on Jan 27, 2019 17:00:06 GMT
I may have misunderstood this one - I thought this one was just up for sale. Really ?? 
|
|
arby
Member of DD Central
Posts: 910
Likes: 959
|
Post by arby on Jan 27, 2019 18:12:11 GMT
I may have misunderstood this one - I thought this one was just up for sale - if this chap bought this one a while ago then I was mistaken (no need to be unpleasant). If this is the case then it strikes me the UK market has moved against him (I don't buy in London so don't know the market although the above estimates of a reduced sales value strike me as perfectly reasonable). If this is the case then this chap has to either forgo his deposit or plough on with this bridging loan and hope he can soon get cheaper financing and/or a cash injection. Of all the interesting loans this one is my favourite closely followed by the park homes albeit for different reasons. I will ask FS tomorrow what the situation is with the stamp duty. At least the rest of us have just realised why the last few days of comments have been so confused
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Jan 28, 2019 10:37:00 GMT
spoke to FS (helpful) - this is not true and has been paid. As to what rate they were unable to tell me but no big deal.
FS also confirmed this one was bought off-plan- I can't see any reference to this in their notes so maybe losing it as I get older.
However considering this one was bought off-plan surely the borrower has had plenty of time to organise the finance - interesting one - wonder if we will return to this one in 6 months...
|
|
Doc
Member of DD Central
Posts: 196
Likes: 211
|
Post by Doc on Jan 28, 2019 11:30:03 GMT
FS also confirmed this one was bought off-plan- I can't see any reference to this in their notes so maybe losing it as I get older. Try the Sale completion statement in Files, which has been mentioned numerous times on this forum.
|
|
bg
Member of DD Central
Posts: 1,368
Likes: 1,929
|
Post by bg on Jan 28, 2019 11:36:47 GMT
spoke to FS (helpful) - this is not true and has been paid. As to what rate they were unable to tell me but no big deal. FS also confirmed this one was bought off-plan- I can't see any reference to this in their notes so maybe losing it as I get older. However considering this one was bought off-plan surely the borrower has had plenty of time to organise the finance - interesting one - wonder if we will return to this one in 6 months... The stamp duty is not relevant. Whether the buyer had to pay or not it doesn't affect the security. There are 2 main issues that impact getting a BTL mortgage when you buy off plan. First many banks are reluctant to commit until the thing has been built and there is a tenant in there (on a proper lease). Second you don't know when the thing will be completed....contrary to what some people say on here, it is very common for developments to over run, often by a considerable time (I have bought over a dozen new build properties and the shortest delay I have ever had is 2 months....longest over 2 years). If you get a mortgage agreed, typically the offer is only valid for 6 months so it's very hard to judge (and you pay mortgage fees). Obviously we don't know this purchasers exact circumstances. It may well be that with this buyer being foreign the banks are a bit cautious making it harder to secure finance. Who knows.
|
|
Doc
Member of DD Central
Posts: 196
Likes: 211
|
Post by Doc on Jan 29, 2019 10:25:24 GMT
FS also confirmed this one was bought off-plan- I can't see any reference to this in their notes so maybe losing it as I get older. Try the Sale completion statement in Files, which has been mentioned numerous times on this forum. adrian77, hopefully you found the reference.
I'm not in this loan, but I wouldn't want to see it inaccurately promoted to your mega failures premier league. 
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Jan 29, 2019 11:02:19 GMT
no - just can't see it - however interesting discussion thread
As I said I find this one difficult to call - I have stopped adding to my mega list and now just seeing how accurate or inaccurate my instinct was. As to this one my pure guess is that there is just about equity to prevent a capital loss but who knows where the London market will be in 6 months time.
|
|
Doc
Member of DD Central
Posts: 196
Likes: 211
|
Post by Doc on Jan 29, 2019 11:07:10 GMT
no - just can't see it - however interesting discussion thread As I said I find this one difficult to call - I have stopped adding to my mega list and now just seeing how accurate or inaccurate my instinct was. As to this one my pure guess is that there is just about equity to prevent a capital loss but who knows where the London market will be in 6 months time. It's in the tab marked Files ... seriously if you are not looking in this tab, you will be missing out on a lot of relevant loan information.
|
|
