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Post by loanstar on Apr 23, 2015 21:43:46 GMT
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Post by loanstar on Apr 30, 2015 19:00:36 GMT
But with same view of the cricketground but at half the price is; www.rightmove.co.uk/property-for-sale/property-49636345.htmlNo wonder there are so many loan pats still available at a discount for the loans on this development. To shift the flats they are going have to do more than invite a couple people from FC to come and view. In the sales picture the grade 11 listed school building is finished. However we know that is phase two which has not started yet. |
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coop
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Post by coop on May 1, 2015 8:35:11 GMT
Hmmm, interesting.
I have £40 of 7248 and £60 of 9262.
No discounted parts available for 7248 currently; but a lot at 0.3-0.4% discount on 9262.
I reckon anything discounted a bit on 7248 will sell; you'll have to go to 0.5% on 9262 by the looks of it.
I may shed some of mine as I'd rather not get involved in another Harrogate; although it's no big deal really.
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blender
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Post by blender on May 1, 2015 10:36:08 GMT
An interesting discussion. I tend to be with Coop, in that my policy has been to buy up front and sell before the end game. The end game is where the risk is - in that FC have the interest and only have to manage to pay it back to you (difficult for them but usually managed unless the computer says no). If bought with the cash back, why keep to term? If not bought with cash back or a large discount, why buy it for the risky part?
On Harrogate I had sold all my parts before the downgrade, then purchased the last part and sold at par (I still cannot work out why they went so quickly). Harrogate was a lucky escape and a warning that we can get locked in once the end is in sight, or should be in sight but isn't.
I post as an arch diversity criminal.
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blender
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Post by blender on May 1, 2015 11:33:12 GMT
An interesting question. Because I do not plan to hold to term I just tend to look at the deal, but the deal has to work to term in case I have to hold to term. So the actual development is of little interest. Banbury did not work when you spread the 2% cash back over the 24 month term (8% after fees), and the second tranche was much worse. So I have never held any.
Looking at it now, I see that the current valuation is similar to the cash owing to lenders - which I would worry about (though remember that FC holds the interest and has had its fees). Materials have been bought, and presumably the borrower has cash. If the borrower decides as a commercial decision to sell rather than develop, that's fine, - especially if you had the 2% cash back. FC has a first charge and presumably will not allow the borrower to sell unless the proceeds plus any borrower cash held will fully repay the loans. The problem is that we do not know the borrower's reasons for marketing, and if there were difficulties then the current security on just the property looks troublesome. Personally, if I held it I think the balance of risks (known and unknown) and benefits would move me to consider other projects. (but my holding would be outside of recommended diversity)
Edit: FC have now posted on their forum about this project and have supplied the missing information. On the basis of that satisfactory explanation I would be holding, because it can only benefit the lender through an early sale, if you have had the cash back.
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coop
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Post by coop on May 1, 2015 14:04:44 GMT
I post as an arch diversity criminal. So do I! 11.6% at last check 
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blender
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Post by blender on May 1, 2015 17:21:44 GMT
FC have now posted on their forum about this project ... A result of being blenderized? The question was asked in another place 3 days ago. The fact that it was answered shortly after the discussion here was probably coincidence. Either way it is good to have a satisfactory explanation, especially if you have any loan parts.
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