mikes1531
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Post by mikes1531 on May 6, 2016 23:18:34 GMT
Was there a For Sale or Sold sign on the building? What's the current state of the agent's listing? I didn't particularly look for signs (concentrating on road ) but I didn't notice any. The agent's listing is still on the site and is exactly as a few weeks ago: SOLD (STC). Perhaps the buyer is looking for someone else who will lend them 100+% of their purchase price?
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Post by mrclondon on May 11, 2016 17:26:02 GMT
Well what ever the story was behind this one, it disappeared from the list of upcoming loans this afternoon.
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SteveT
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Post by SteveT on May 11, 2016 17:31:45 GMT
Well what ever the story was behind this one, it disappeared from the list of upcoming loans this afternoon.
Nothing like a bit of lender DD to help weed out the duffers
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Post by fundingsecure on May 12, 2016 21:47:45 GMT
You may have seen that we are relisting this loan tomorrow with a RICS valuation that came in lower and where we have reduced our lending accordingly. In reference to the above comment about an agent’s website listing the sale of this property, we would like to advise that this referred to a previous offer that was subsequently withdrawn. The borrower is purchasing the property at a price substantially higher than that amount.
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investibod
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Post by investibod on May 13, 2016 13:45:26 GMT
You may have seen that we are relisting this loan tomorrow with a RICS valuation that came in lower and where we have reduced our lending accordingly. In reference to the above comment about an agent’s website listing the sale of this property, we would like to advise that this referred to a previous offer that was subsequently withdrawn. The borrower is purchasing the property at a price substantially higher than that amount. So somebody was buying for a lower price (presumably accepted by the vendor) and they withdrew their offer. Our borrower is buying the property at a higher price than the once originally accepted? Maybe they would also like to pay a higher interest rate
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Jun 7, 2016 14:23:18 GMT
Those of you who chose to lend on this one might be interested to know that judging by the amount of general old tatty building-type stuff piling up outside this afternoon, it looks like the place is being gutted, so progress being made. Unless someone just drove past and dumped it there of course (only joking, possible but not that likely in that location). I didn't have time for more than a quick glance today.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Sept 22, 2016 17:16:30 GMT
Now here's a thing. Voices are circulating around Great Harwood that these '2 flats' are in fact going to be a hairdressers, although concensus is that it's anybody's guess since the pile of old tat building stuff is still outside on the forecourt all this time later and that it's time they were getting on with it. In fact, the plans were only approved on 24th August, so no surprise not much appears to have happened so far.
Anyway, I just went and had a look at the planning application/approval to check and found that it is for (my bolding on last sentence): "Demolition of existing single-storey extension to rear of property with the erection of 2-storey extension. elevational alterations to include render finishes to all elevations and blocking up of 2 ground floor windows and proposed bay window to front elevation. Change of use at first floor from residential use to beauty therapy including massage tanning and nail treatments."
So, never was intended to be two flats at all. I have absolutely no idea what that means for the valuation of the property. I do know there is an existing hair salon up for sale not too far away from it, that has not sold for something like a year. That isn't so well located as this one, probably smaller (it's in a row of terraced houses) and could not have a bay window added, so not really quite the same thing. But still, food for thought should the worst happen to this one and it went into default.
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baldpate
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Post by baldpate on Jan 8, 2017 23:18:10 GMT
This one is about to be 'renewed' at last (having been pulled back from the brink of default, according to the updates), with the interest being covered by a higher loan amount and a new value placed on the property (by FS, if I rad the email correctly) which, by pure coincidence, is just sufficient to maintain a 70% LTV. The announcement email doesn't make the usual statement that investors in the previous loan may roll-over their investment, so I presume not. I shall watch this one from the sidelines.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jan 8, 2017 23:29:03 GMT
Given the trash that has been fed to, and accepted, FS by the borrower How many mugs, Sorry, new investors will FS find for this junk? Hope they have an underwriter to get this one away and get my money back. Don't rely on it not being a rollover. To the inexperienced, if you want out then go in and set the reinvest flag to a cross today.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 9, 2017 10:44:08 GMT
Massive barge pole, a mile long, I have just emailed FS about this.
Seems to me the Borrower is beyond untrustworthy, the story changed in a week, note "we learned" :-
24/12/2016 - Following a meeitng with the borrower this week, we learned that funds earmarked for interest have been used on improvements to the property.
17/12/2016 The borrower expected to be in funds to repay this loan last Friday (16/12). This has been delayed into the following week.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Jan 9, 2017 11:14:56 GMT
I will be in Great Harwood tomorrow - if I get time I'll go and see if I can see any obvious improvements. Haven't been past that way for the past month - there was no obvious external change up to that point.
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markdirac
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Post by markdirac on Jan 9, 2017 11:45:21 GMT
Maybe FS are backed into a corner with this one. Perhaps they have decided that if they default it, they will have a load of hassle & cost (small recoveries team?, awkward borrower) and will possibly face their own haircut. Perhaps it's better to continue to fund this refurbishment to increase chances of full repayment at a low administrative cost. Although I am amazed that they have not found a way to drop the LTV to 60% or even 65%.
Not only am I shoving hard on the barge pole, but I have lost a little confidence in FS.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 9, 2017 12:13:56 GMT
Perhaps you are right mark dirac, although the whole essence of ABP2P is of course complete trust in the platform in that the LTV should be sufficient to allow us to Default the Loan without Loss.
Getting the LTV "right" with property is not difficult, it is arguably one of the easiest assets to accurately value.
Thank you for your offer ramblin rose, I think we all look forward to your report if you get the chance to swing by.
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mikes1531
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Post by mikes1531 on Jan 9, 2017 15:10:01 GMT
I will be in Great Harwood tomorrow - if I get time I'll go and see if I can see any obvious improvements. Haven't been past that way for the past month - there was no obvious external change up to that point. ramblin rose: Thanks for offering to take a look at this property. I look forward to hearing about what you see. I'm particularly interested in the state of the works. In order to justify the increased loan that's needed to provide the extra funds to pay the interest/fees on the original loan, fundingsecure have decided that the property value has increased. But they didn't get a new valuation opinion from a professional. They've assumed the value has increased but all they've told us is... I'm no expert in such matters, but I wouldn't have thought that obtaining PP for a relatively small building modification would affect the value of the property on its own. The building works might well increase the value of the property once they are complete, but if those works already had been done I would have expected FS to include some photos as evidence that progress had been made that would justify the increased value. Without some evidence of an improvement of the property, I'm afraid this looks to me like a case of 'extend and pretend' and/or 'hope for the best'.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Jan 10, 2017 17:02:14 GMT
I went to take a look at this one today. Not possible to see inside at what might or might not have been improved as the downstairs windows are mostly frosted glass. However, there has been some work done outside.
The pile of tat that was hanging around outside from some earlier internal stripping has gone. The building itself hasn't changed as far as I can tell, but the back yard walls have been demolished and the yard completely dug up. There are deep trenches taking up most of the yard (it's very small) either from the removal of all the drains (the rubble and old drains are now in a skip by the side of the building) or possibly all ready to take the new drains. Nothing was going on that I could see today, but it's miserable and rainy up here at the moment.
Whether all this amounts to an increase in value I couldn't say. On the one hand the place is ostensibly in a worse condition than it was when taken over. On the other hand, if it was already known that the drains needed replacing at the outset then it could be argued that the demolition work having been done now makes it cheaper to complete.
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