arby
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Post by arby on Mar 22, 2019 15:50:43 GMT
Just checking out the upcoming A****n Grove, London loan and I was planning to invest £350-400 in it. I've just seen there are bid intervals of £250. I guess that means I'm in at £250 then, not £400. fundingsecure can you as a matter of urgency clarify what intervals are allowed to be sold on the SM for these new types of loan funding? As usual, new processes seem to be implemented with minimal communication or explanation of the implications (12 month loans etc) |
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rs
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Post by rs on Mar 22, 2019 16:04:01 GMT
Just checking out the upcoming A****n Grove, London loan and I was planning to invest £350-400 in it. I've just seen there are bid intervals of £250. I guess that means I'm in at £250 then, not £400. fundingsecure can you as a matter of urgency clarify what intervals are allowed to be sold on the SM for these new types of loan funding? As usual, new processes seem to be implemented with minimal communication or explanation of the implications (12 month loans etc) Property purchased for approx. £970k. Then land on the property given to FS for £500k loan. Borrower gets to keep the house & has £500k cash. I'm not so sure this is a good loan.
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arby
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Post by arby on Mar 22, 2019 16:20:55 GMT
Just checking out the upcoming A****n Grove, London loan and I was planning to invest £350-400 in it. I've just seen there are bid intervals of £250. I guess that means I'm in at £250 then, not £400. fundingsecure can you as a matter of urgency clarify what intervals are allowed to be sold on the SM for these new types of loan funding? As usual, new processes seem to be implemented with minimal communication or explanation of the implications (12 month loans etc) Property purchased for approx. £970k. Then land on the property given to FS for £500k loan. Borrower gets to keep the house & has £500k cash. I'm not so sure this is a good loan. What you've said doesn't make sense to me. Buyer paid £970k for property worth £740k according to VR, and FS has lent £500k against it. What am I missing?
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rs
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Post by rs on Mar 22, 2019 16:29:19 GMT
Property purchased for approx. £970k. Then land on the property given to FS for £500k loan. Borrower gets to keep the house & has £500k cash. I'm not so sure this is a good loan. What you've said doesn't make sense to me. Buyer paid £970k for property worth £740k according to VR, and FS has lent £500k against it. What am I missing? Please read DD Central posts on Al*** Gro***, London. Copied & pasted below for people who don't have access to DD Central yet.
I am interpreting this as the house was purchased for £966,600 which included the land/space that forms the asset? The property itself not being involved in the package.
If my assumption is correct, the valuation is a little questionable, the dates suggesting it was sold with PP so no value added.
This bit being the one allowed to offer the opportunity for confusion?
NOTE: The entire property was purchased at £966,600. The GDV upon completion will be £2,385,000.
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arby
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Post by arby on Mar 22, 2019 16:33:11 GMT
Isn't the existing property being demolished and is (almost) worthless and its the land that is being valued?
Also, if FS have the right to the land, who would dare build a house on it but not pay off the debt on the land and try to keep the house? That would seem bonkers. As usual, I'm still clearly missing something
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rs
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Post by rs on Mar 22, 2019 16:43:19 GMT
Isn't the existing property being demolished and is (almost) worthless and its the land that is being valued? Also, if FS have the right to the land, who would dare build a house on it but not pay off the debt on the land and try to keep the house? That would seem bonkers. As usual, I'm still clearly missing something An extract of FS summary is copied & pasted below. Do FS mention demolition of property or did FS state borrower has obtained clear site. Shame FS did not request from the borrower a photo of the works that has started on the site. Works has started could mean erection of a fence around the property! Anyway I'll let you figure out what's happening with this loan but i'm staying away from this loan. Maybe if everyone emails FS, FS might provide an update or a photo of the works that have started.
The Security
The borrower has obtained a clear site, located between two terrace buildings in London. The property is located in a good mixed residential/commercial area to the north of Central London known as Stoke Newington.
The borrower has also obtained planning permission for the erection of a detached building to provide four self-contained flats, the property has been purchased and the works have started. The valuer has said, based on the sales transactions that each flat will be finished to a high standard of specification and can be disposed of on a long lease in excess of 90 years. The GDV upon completion will be £2,385,000.
Exit Strategy
The borrower is currently waiting for funds to come through from a well-known lender within the industry. Once the borrower has received the loan funds from their lender, they will pay off the funds with FundingSecure.
NOTE:
The entire property was purchased at £966,600. The GDV upon completion will be £2,385,000.
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iRobot
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Post by iRobot on Mar 22, 2019 16:48:30 GMT
A dedicated thread for this loan?  Admin ?
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arby
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Post by arby on Mar 22, 2019 16:50:52 GMT
A dedicated thread for this loan? Admin ? Yep, I was only intending to comment on the minimum loan size restriction being rolled out further, but it blew up a bit. Sorry.
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Post by mrclondon on Mar 22, 2019 20:31:40 GMT
Council tax records confirm the existing property contains 2 flats. Land registry records show the two flats were spun off onto separate leasehold titles in November 2018, which was BEFORE the sale of the freehold title in January this year.
The purchase price for the freehold title in January is for the land and ONLY the investment yield of the ground rent from the two leases ... it does not relate to the two flats themselves.
Given the VR valuation is for the land only, it seems reasonable to assume that the intent is to split the land away from the existing title. (I have only skim read the VR so I stand to be corrected if further clarity is hidden therein)
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Post by mrclondon on Mar 23, 2019 19:33:13 GMT
Photo taken today, 23rd March. The fencing at the back of the parking area that acts a privacy screen to the garden looks unchanged from the April 2018 (and earlier) Google streetview images, and hence it would seem unlikely that any works have started. No effort has been made to prune the privet hedge alongside the road during the last 12 months. The entrance to both flats is via the door in the side elevation.
Final loan id is 2223857946
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rs
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Post by rs on Mar 25, 2019 11:25:51 GMT
Thakyou MrcLondon. Your work is very much appreciated.
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Post by mrclondon on Apr 1, 2019 10:33:13 GMT
The FS charge against the borrowing company is now visible at CH (Created 15th March, Delivered 26th March) ... so created before the listing went live on FS, and hence the loan presumably must be guaranteed to draw down.
fundingsecure - given FCA rules (should) prevent you from funding loans from your own balance sheet, shouldn't this loan have the green underwriter bar showing ?
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coop
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Post by coop on Apr 1, 2019 12:59:49 GMT
The FS charge against the borrowing company is now visible at CH (Created 15th March, Delivered 26th March) ... so created before the listing went live on FS, and hence the loan presumably must be guaranteed to draw down.
fundingsecure - given FCA rules (should) prevent you from funding loans from your own balance sheet, shouldn't this loan have the green underwriter bar showing ? They really should pay you to tell them this stuff in private...
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rocky1
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Post by rocky1 on Apr 1, 2019 13:29:48 GMT
loan summary. this loan will be used to purchase another business proposition.FS can keep this one.
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adrian77
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Post by adrian77 on Apr 1, 2019 14:19:16 GMT
sure can - had a look at this chap's directorships - he has other properties and other charges but I have no idea how much he paid for them and what the loans are. I have also looked at his filed returns and to be honest I can't see much evidence of "loadsa" money behind him (does not mean there isn't but why is he borrowing at relatively very high rates?) The London market is already cooling and as I am others have said I am not convinced short terms loans are the best form of funding for a lot of long term property developments and there is still the Brexit situation which seems to have been going on since 1066!
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