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Post by mrclondon on Apr 26, 2016 18:21:13 GMT
A bit of googling of the address will reveal it was on the market with local agents Hunters last July (as per creation date of pdf on agents website) for £275k.
The photos of the plot (also visible on zoopla and rightmove flashed sold stc) show a lovely corner plot of mown grass at the end of a pair of 2 storey terraces.
The valuation report states (page 6 section F) that the planning approval was in 2008 and will have lapsed 3 years thereafter unless the demolition of the previous building (a public house) could be deemed part of the planning consent. On Liverpool's planning website, the documents filed under this 2008 planning application includes the case officers report that states "The application site constitutes a semi-derelict public house (that was being demolished at the time this report was written)" so a claim that work under the approved planning consent has started by virtue of the demolition of the pub is tenuous at best.
The approval is for a 3 storey block of flats (12 units) and the estate agents pdf of last July implies a pre-application for a revised 15 unit scheme has been submitted.
Back to the case officers report from 2008, paragraph 6 states "In terms of scale and massing, the proposed new block will be some 10.4 metres to its ridge which is virtually identical to the size and scale of the pub to be demolished" in answer to objections from neighbours (in the 2 storey terraces).
IMO, any new planning application for a 3 storey building will face much stiffer opposition now that 8 years have passed since the demolition of the pub. Intuitively just looking at the photos of the plot it just doesn't feel the right solution for that plot.
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Post by earthbound on Apr 26, 2016 18:42:23 GMT
A bit of googling of the address will reveal it was on the market with local agents Hunters last July (as per creation date of pdf on agents website) for £275k.
The photos of the plot (also visible on zoopla and rightmove flashed sold stc) show a lovely corner plot of mown grass at the end of a pair of 2 storey terraces.
The valuation report states (page 6 section F) that the planning approval was in 2008 and will have lapsed 3 years thereafter unless the demolition of the previous building (a public house) could be deemed part of the planning consent. On Liverpool's planning website, the documents filed under this 2008 planning application includes the case officers report that states "The application site constitutes a semi-derelict public house (that was being demolished at the time this report was written)" so a claim that work under the approved planning consent has started by virtue of the demolition of the pub is tenuous at best.
The approval is for a 3 storey block of flats (12 units) and the estate agents pdf of last July implies a pre-application for a revised 15 unit scheme has been submitted.
Back to the case officers report from 2008, paragraph 6 states "In terms of scale and massing, the proposed new block will be some 10.4 metres to its ridge which is virtually identical to the size and scale of the pub to be demolished" in answer to objections from neighbours (in the 2 storey terraces).
IMO, any new planning application for a 3 storey building will face much stiffer opposition now that 8 years have passed since the demolition of the pub. Intuitively just looking at the photos of the plot it just doesn't feel the right solution for that plot.
Hmm yes agree, not sure i like the sound of section F (f.04) However, if the demolition of the public house which was on the site is deemed to be part of the planning consent then no reapplication will be necessary. FS.. either it was part of the planning consent or it wasn't... thought you might have checked this out. 
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mikes1531
Member of DD Central
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Post by mikes1531 on Apr 26, 2016 19:40:44 GMT
Even if the demolition work was deemed to satisfy the 'work must start within three years' condition, might the failure to progress beyond that stage in the next 5+ years be grounds for the PP lapsing? Other questions I have for fundingsecure include... - The valuation is based on the economics of development. That's not a problem, but it's based on the potential income of the developed property at a capitalisation rate of 7%, and the resulting value is very sensitive to that assumption. (Using 8% would reduce the value by £180k.) Also, the allowance for Infrastructure, Fees, Interest and Profit is less than 20% of the construction cost, which strikes me as a pretty tight margin. Do FS think these assumptions are reasonable?
- Is the loan to allow the borrower to purchase the property and hold it until the revised PP is granted and a development loan can be arranged?
- Or does the borrower already own the property and is intending to use the loan proceeds to get the development started?
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Post by earthbound on Apr 26, 2016 19:54:58 GMT
mikes1531 not sure about the economics , not my field, but my understanding of planning is that a project has a period in which it should be started, usually 5 years domestic, 3 years commercial, once started, then it can take as long as necessary ie donkeys years.. my concern is, the valuation doc infers that it does not know about the planning situation but FS front page says A 6 month loan secured against a freehold development site in Liverpool. The site has planning permission to erect a 3 story block of 12 flats. ps... hope my rubbishy copy and paste is improving. 
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Post by fundingsecure on Apr 27, 2016 7:40:04 GMT
Thank you for your questions. The planning permission includes the demolition of the public house, which was completed within the 3 year rule.
The loan is to part-finance the acquisition of the site.
In terms of capitalisation rates, the scheme that the borrower intends to implement would generally be valued at a yield of 5%. This is because the rental income is government backed. We have a letter on file confirming this. We believe, on the whole, the valuation to be reasonable. There will be some element of profit included within the build costs.
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mikes1531
Member of DD Central
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Post by mikes1531 on Apr 27, 2016 10:56:21 GMT
fundingsecure : Thank you for your answers. How close to completion is the purchase? Have contracts been exchanged? I suppose the real question for FS investors is ... If we make an investment today, when can we expect to start earning interest?
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