brin
I am trying to stay calm.
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Post by brin on Mar 18, 2016 10:07:03 GMT
I cannot claim to be as experienced in this is most of the people here, but my reading of the valuation is that the value without the restrictive covenants removed is £7,450,000 making the LTV 83%. I do not see a value for a 6 month restricted sale in these circumstances. I am not comfortable with this, so I have decided to remove my pre-funding for this loan. I agree. The whole question of conversion to residential (RC, planning, existing lease, suitability of the area etc) is well outside of the time scale for the loan. I will base my decision purely on its ongoing office use, and 83% LTV is too high for me. But might be suitable for anyone not yet fully diversified, on the assumption that SS know what they are doing, because diversification is a better way of achieving security than doing one's own DD IMO. Everthing seems fine to me, the valuation docs were renewed 16/3/2016 reducing the value 20% to £8,815,000 and the calcs all look ok to me, ltv is 70%.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 18, 2016 10:16:07 GMT
I agree. The whole question of conversion to residential (RC, planning, existing lease, suitability of the area etc) is well outside of the time scale for the loan. I will base my decision purely on its ongoing office use, and 83% LTV is too high for me. But might be suitable for anyone not yet fully diversified, on the assumption that SS know what they are doing, because diversification is a better way of achieving security than doing one's own DD IMO. Everthing seems fine to me, the valuation docs were renewed 16/3/2016 reducing the value 20% to £8,815,000 and the calcs all look ok to me, ltv is 70%. Have you got valuation documents that I haven't? The only valuation report that I have got for unit 3 is dated "1 February 2016", and it values the security @ £8,815,000, but only if the RC is removed......
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adrianc
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Post by adrianc on Mar 18, 2016 10:24:02 GMT
Everthing seems fine to me, the valuation docs were renewed 16/3/2016 reducing the value 20% to £8,815,000 and the calcs all look ok to me, ltv is 70%. Have you got valuation documents that I haven't? The only valuation report that I have got for unit 3 is dated "1 February 2016", and it values the security @ £8,815,000, but only if the RC is removed...... It's both. The pages are headed 16th March, but the valuation was done on 1st Feb.
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Liz
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Post by Liz on Mar 18, 2016 10:25:24 GMT
I'm confused on the value, LTV etc on this loan now. We seem to be getting contradictory views.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 18, 2016 10:27:35 GMT
I'm confused on the value, LTV etc on this loan now. We seem to be getting contradictory views. The value of the security is £ 8,815,000, but only if the RC is removed. With the RC in place the security is worth 20% less (£ 6,170,500) providing us a current LTV of 87.5%
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adrianc
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Post by adrianc on Mar 18, 2016 10:29:45 GMT
I'm confused on the value, LTV etc on this loan now. We seem to be getting contradictory views. That's because the valuation gives different values. Loan - £6,170,500 Market value (no special assumptions) - £8,825,000 = 69.9% Market value (continuing office use) - £7,450,000 = 82.8% Market value (6mo marketing) - £8,825,000 = 69.9% Market value (vacant possession) - £8,815,000 = 70%
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 18, 2016 10:33:28 GMT
I'm confused on the value, LTV etc on this loan now. We seem to be getting contradictory views. That's because the valuation gives different values. Loan - £6,170,500 Market value (no special assumptions) - £8,825,000 = 69.9% Market value (continuing office use) - £7,450,000 = 82.8% Market value (6mo marketing) - £8,825,000 = 69.9% Market value (vacant possession) - £8,815,000 = 70% Would you say that it is assumed that "Market value (continuing office use)" is the surveyors value of the security with the RC in place?
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Liz
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Post by Liz on Mar 18, 2016 10:36:53 GMT
Savingstream said with RC removed the value would rise to over £10m.
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brin
I am trying to stay calm.
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Post by brin on Mar 18, 2016 10:38:45 GMT
brin Have you got valuation documents that I haven't? The only valuation report that I have got for unit 3 is dated "1 February 2016", and it values the security @ £8,815,000, but only if the RC is removed...... It's both. The pages are headed 16th March, but the valuation was done on 1st Feb. yes adrianc, i agree, i have assumed that the valuation has been updated on 16/3/2016, but they have left the valuation date at 1 feb 2016, if this is the case then maybe its just the 1 feb date needs changing to 16th march or whatever date the new valuation was carried out (or adjusted) edit here.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 18, 2016 10:39:29 GMT
Savingstream said with RC removed the value would rise to over £10m. I think, in essence, they are disagreeing with the valuation report. In the overview, they say "valuer is also very bullish"......
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Liz
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Post by Liz on Mar 18, 2016 10:42:23 GMT
Savingstream said with RC removed the value would rise to over £10m. I think, in essence, they are disagreeing with the valuation report. In the overview, they say "valuer is also very bullish"......If that is true, the FCA would take a dim view of such statements.
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adrianc
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Post by adrianc on Mar 18, 2016 10:44:46 GMT
That's because the valuation gives different values. Loan - £6,170,500 Market value (no special assumptions) - £8,825,000 = 69.9% Market value (continuing office use) - £7,450,000 = 82.8% Market value (6mo marketing) - £8,825,000 = 69.9% Market value (vacant possession) - £8,815,000 = 70% Would you say that it is assumed that "Market value (continuing office use)" is the surveyors value of the security with the RC in place? It seems clear that that's the valuation with no chance of conversion, either because of the RC or PP being refused flat. I think that's the figure we have to go with, rather than the "20%". From 88's valuation... From 87's valuation...
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brin
I am trying to stay calm.
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Post by brin on Mar 18, 2016 10:46:53 GMT
SIMPLE MESSAGE TO SS. could you please provide below. 1. valuation with rc's in place 2. valuation with rc's removed. thanks for your attention. RSVP.  |
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investibod
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Post by investibod on Mar 18, 2016 10:51:42 GMT
That's because the valuation gives different values. Loan - £6,170,500 Market value (no special assumptions) - £8,825,000 = 69.9% Market value (continuing office use) - £7,450,000 = 82.8% Market value (6mo marketing) - £8,825,000 = 69.9% Market value (vacant possession) - £8,815,000 = 70% Would you say that it is assumed that "Market value (continuing office use)" is the surveyors value of the security with the RC in place? That is what I understood it to mean.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 18, 2016 10:52:53 GMT
Would you say that it is assumed that "Market value (continuing office use)" is the surveyors value of the security with the RC in place? It seems clear that that's the valuation with no chance of conversion, either because of the RC or PP being refused flat. I think that's the figure we have to go with, rather than the "20%". From 88's valuation... From 87's valuation... Thanks I've been so sidetracked by the stupid 20% comment from SS earlier, that I couldn't see the forest for the trees...... Anyhow, off to edit my OP
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