ben
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Post by ben on Jun 18, 2016 9:59:12 GMT
most of the property ones are either not yet 6 months old or have extended so time will tell.
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phil
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Post by phil on Jun 18, 2016 10:54:29 GMT
And in 8 months time, when the plethora of loans come home to roost....  Many with exceedingly optimistic valuations.. A typical optimistic valuation would seem to be Woodlea Manor. It's stated £1.4m however guide selling price on Rightmove earlier this year shows £1.3m. We are not told what the borrower paid for it. A loan of £975k plus six months interest of £87,750 at 1.5% monthly = £1,062,750 Assuming a value of £1.3m and capital £975,000 + interest of £87,750 = £1,062,750 = LTV 81.6% after six months We are told in the valuation that likely occupational & investor demand is poor to fair and that the 90 day sale price with vacant possession is £1,150,000 Assuming a 90 day value of £1,150,000 and capital + interest of £1,062,750 = LTV 92% after six months Assuming a 90 day value of £1,150,000 and capital + interest of £1,062,750 after six months plus 3 months interest £43,875 for a 90 day sale we have a LTV of 96% after nine months A profit is anticipated by splitting the property into two lots and converting the annexe into a four bedroom house, assuming that this is completed and the two lots are sold within six months the borrower is paying six months interest of £87,750, we are not told the anticipated selling price of the two lots but it will have to cover the £87,750 interest, the cost of the annexe conversion work plus the purchase price then return a profit for the borrower. I'm not sure if it's worth a punt.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 1, 2016 23:46:50 GMT
FS appear to have got bored of 'no change' and taken a liking to 'ongoing' as the new default Fri update in lieu of anything interesting to report It is unclear if this terminological change is Brexit related  |
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ianj
Member of DD Central
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Post by ianj on Jul 2, 2016 7:13:54 GMT
FS appear to have got bored of 'no change' and taken a liking to 'ongoing' as the new default Fri update in lieu of anything interesting to report It is unclear if this terminological change is Brexit related I'll be happy as long as your adjective remains dissociated with any 'inexactitude'......which, alas, would not be true of many claims made by politicians during the Brexit campain! 
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SteveT
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Post by SteveT on Jul 9, 2016 8:32:47 GMT
fundingsecure Not that it makes much difference in practical terms but why, given both are now in the hands of LPA Receivers, are the South Wales Property and Telford Property loans both still listed as "Loan Active" rather than "Unredeemed" ?
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trevor
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Post by trevor on Jul 9, 2016 14:14:57 GMT
I am thoroughly unimpressed with the updates of loans past their due dates. The lack of detail is staggering. The weekly updates of "ongoing" or a sentence of a few meaningless words such as "meeting held" but no actual detail of the outcome does not fill me with confidence that any useful progress is actually being made. I'm not a great fan of AC due to their low rates but their updates are meaningful and SS updates are meaningful if slightly infrequent.
For instance the carpet loan the longest sentence in the last 4 weeks is 4 words. We have no idea when we will get money back and how much.
I appreciate some detail must be kept secret so as not to give away their negotiating position, but I need more than they are offering at the moment.
I will not be making any new cash investments until my confidence that they are dealing with the unredeemed loans increases.
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Post by ravado on Jul 9, 2016 17:13:05 GMT
Totally agree. My next FIVE loans due to renew/complete are all effectively 'Unredeemed'. They are 'Boatyard, South Wales 1, SW2, Telford and diamond ring. This obviously makes me very uncomfortable; particularly in view of the poor update reporting. I'm also very concerned that new loans are constantly being launched while the secondary market is rapidly filling up with discounted loans. I'm generally an optimist but there are limits!  |
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Post by bluechip on Jul 9, 2016 23:59:50 GMT
Bootle loan renewal has barely moved for days now, I have a fair bit locked up in that. South Wales is beyond a joke with their updates, and again I put in more than I should have. No more investments from me until I start having some of my existing funds returned. I'm sick of seeing the word "ongoing".
I have emailed several times to ask questions and never receive a response, not impressed.
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Post by ravado on Jul 10, 2016 11:30:27 GMT
Yes I'm in Bootle as well and as you say it shows no sign of filling. I'd always assumed that I could simply not renew and get my money out after 6 months. However, the reality is that because FS, like lemmings leaping off a cliff, continue to launch new loans, old loans may never fill and lenders are left in limbo. The logical thing for FS to do at this point would be to slow down or stop the flow of new loans. But who knows what their plan actually is? |
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09dolphin
Member of DD Central
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Post by 09dolphin on Jul 10, 2016 19:12:04 GMT
Re Bootle loan.
When the first loan was requested the information available said that the intention was to obtain planning permission and then sell the site to repay the loan. The information at renewal states that plans have been drawn up. There is no mention of preliminary meetings etc with planning officers, plans being submitted but not approved or any other signs of real progress.
The delay in the loan filling may be because there appears to have been very little progress in 6 months and people may be concerned that progress may continue at a snail pace, that a renewal of the loan may prove to cost more to the borrower in interest than any profit on a sale and that the stock market is showing little confidence in house builders post Brexit so why should small investors have confidence.
Just my thoughts as to why this loan will continue to fill very slowly.
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hendragon
Member of DD Central
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Post by hendragon on Jul 11, 2016 13:44:52 GMT
the defaulted diamond ring has been recovered
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Post by ravado on Jul 11, 2016 13:51:21 GMT
Yes diamond ring recovery very quick. I got my capital and interest today. If only the property loans (boatyard, South Wales x 2 etc) were as straightforward!
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hendragon
Member of DD Central
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Post by hendragon on Jul 11, 2016 15:31:05 GMT
property is way more complicated. I would think anything up to 12 months to resolve these.
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Post by polonius on Jul 11, 2016 15:50:33 GMT
How complicated are a few rugs?
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hendragon
Member of DD Central
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Post by hendragon on Jul 11, 2016 16:13:32 GMT
How complicated are a few rugs? probably a knotty problem......but seriously FS's record on specialised items like the rugs suggest it does take a lot longer than usual. The Grand piano springs to mind.
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