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Post by earthbound on May 21, 2016 0:48:23 GMT
I've never been in this loan so just an interested observer.
One interesting bit of learning this week from the first AC property loan (#86) in Scotland to need the security realising is that the Law of Property Act (LPA) doesn't apply in Scotland and there is no such thing as LPA Receivers in Scotland. It seems the legal route in Scotland is to appoint an administrator over the borrowing entity. Which I suppose begs the question, does the law operate any differently in Northern Ireland , seems to have been a fair few property's drifting on to the FS platform recently from Londonderry.
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ilmoro
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'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 May 21, 2016 0:50:03 GMT
Just had email , sadly no funds and they will be appointing receivers monday , not the outcome we were hoping for but at last decisive action is being taken. One interesting bit of learning this week from the first AC property loan (#86) in Scotland to need the security realising is that the Law of Property Act (LPA) doesn't apply in Scotland and there is no such thing as LPA Receivers in Scotland. It seems the legal route in Scotland is to appoint an administrator over the borrowing entity. So what do we read into FS's use of the word "receivers"? That they forgot and used the wrong word? Or that they were unaware of the issue and aren't familiar with the differences between how things work under English and Scottish laws? Term is correct - administrative receivership ie administration. Whether term receiver is being used in that context ... probably need to give benefit of doubt
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ilmoro
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'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 May 21, 2016 1:06:06 GMT
I've never been in this loan so just an interested observer.
One interesting bit of learning this week from the first AC property loan (#86) in Scotland to need the security realising is that the Law of Property Act (LPA) doesn't apply in Scotland and there is no such thing as LPA Receivers in Scotland. It seems the legal route in Scotland is to appoint an administrator over the borrowing entity. Which I suppose begs the question, does the law operate any differently in Northern Ireland , seems to have been a fair few property's drifting on to the FS platform recently from Londonderry. Apparently different law for NI &E but effectively the same -LPA
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Post by earthbound on May 21, 2016 1:11:18 GMT
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Post by earthbound on May 23, 2016 10:22:43 GMT
Quoting myself here because of the link above. update from FS 26 March 2016 default proceedings initiated. update from FS 20 May 2016 instructing receivers Monday (which will be 23 may 2016) 2 months later, see below. states in the above link... The principal remedy (and the only permitted remedy where repayment of monies is required) is to issue a “Calling Up” Notice – a statutory demand for repayment of the whole debt, giving the debtor a two month period in which to pay. If the two month period expires without payment, the following remedies are automatically available to the creditor without the need for further action:- "The creditor may sell the property on the open market, subject to a statutory duty to advertise the property and obtain the best price possible. This is not equivalent to becoming a mortgagee-in-possession. Maintenance and insurance etc of the property remain the debtor’s responsibility, but their consent is not required and the sale may be effected by the creditor." i dont know know if this is coincidence or the straight forward policy they had to follow. Surely it would have been easier for fundingsecure to have just been open about this (assuming they knew and followed the correct procedure) and letting the lenders know the full situation and we would not be on here now wondering what the heck is happening. 
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mikes1531
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Post by mikes1531 on May 23, 2016 12:08:11 GMT
I suppose the critical question here is whether "default proceedings initiated" on 26/Mar included issuing a “Calling Up” Notice, or whether that's something the receivers will do once they are appointed. It would be very useful if fundingsecure would explain to us how they expect the recovery process to proceed. |
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Post by earthbound on May 24, 2016 7:30:34 GMT
There is some info about a Scottish boatyard in E****** below. Please note, I have no idea if this the same boatyard as the FS loan, having searched the FS loan and valuations details I cannot find any lender details, only info as per .. 'Scottish boatyard in E*******' so no idea if this is it <cough> . strangely I could not find any other boatyards in E******* , I sure there must be others  |
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Steerpike
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Post by Steerpike on May 24, 2016 8:24:04 GMT
This one could be an eye watering loss
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09dolphin
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Post by 09dolphin on May 24, 2016 12:35:03 GMT
If there is an "eyewatering" loss will be interesting to hear why FS accepted the valuation. Especially as the 90 day sale price was for the amount FS persuaded their lenders to lend without a hint about the exit strategy of the borrower. I assume they knew what the exit strategy was.
Is it any wonder why FS have lost my trust.
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11025
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Post by 11025 on May 24, 2016 14:13:44 GMT
If there is an "eyewatering" loss will be interesting to hear why FS accepted the valuation. Especially as the 90 day sale price was for the amount FS persuaded their lenders to lend without a hint about the exit strategy of the borrower. I assume they knew what the exit strategy was.
Is it any wonder why FS have lost my trust. The valuation was apparently done correctly and used as the basis for the loan , also a near carbon copy valuation was used by SS (one of the assessors was also present at both valuation visits) when they considered this loan with similar values , but for some reason that I am unaware of they didn't proceed it doesn't look like the valuation was suspect , but there was certainly a big enough fly in the ointment for saving stream to not partake.
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mikes1531
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Post by mikes1531 on May 24, 2016 15:07:36 GMT
The valuation was apparently done correctly and used as the basis for the loan , also a near carbon copy valuation was used by SS (one of the assessors was also present at both valuation visits) when they considered this loan with similar values , but for some reason that I am unaware of they didn't proceed it doesn't look like the valuation was suspect , but there was certainly a big enough fly in the ointment for saving stream to not partake. The SS loan was going to be for £280k. Since SS retain interest and some fees at drawdown, a loan that size would have produces net proceeds to the borrower of about the £250k capital owed to FS. But the borrower would have needed another ~30k to pay the FS interest and fees, and that would have needed to come from somewhere else. Which suggests a couple of possible reasons for the SS loan not happening... - SS didn't want to lend £280k on a property with a 90-value of £250k
- The borrower couldn't raise the cash needed to pay the interest/fees on the SS loan.
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Post by earthbound on May 25, 2016 14:06:53 GMT
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11025
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Post by 11025 on May 25, 2016 14:11:01 GMT
I must admit I am getting a bit tired with the elusive nature of FS , they don't even bother replying to emails.
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oldgrumpy
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Post by oldgrumpy on May 25, 2016 14:15:21 GMT
The valuation was apparently done correctly and used as the basis for the loan , also a near carbon copy valuation was used by SS (one of the assessors was also present at both valuation visits) when they considered this loan with similar values , but for some reason that I am unaware of they didn't proceed it doesn't look like the valuation was suspect , but there was certainly a big enough fly in the ointment for saving stream to not partake. The SS loan was going to be for £280k. Since SS retain interest and some fees at drawdown, a loan that size would have produces net proceeds to the borrower of about the £250k capital owed to FS. But the borrower would have needed another ~30k to pay the FS interest and fees, and that would have needed to come from somewhere else. Which suggests a couple of possible reasons for the SS loan not happening... - SS didn't want to lend £280k on a property with a 90-value of £250k
- The borrower couldn't raise the cash needed to pay the interest/fees on the SS loan.
I wonder why he didn't cut his losses somewhat by saving one of the two boatyards linked on the SS deal rather than what seems to be losing both, with some loss also to FS lenders. The full story is yet to be revealed. The story about "sorting out his SIPPS" seems blatantly irrelevant (if true) now. Clearly he has been lying to FS about forthcoming funds for many months.
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11025
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Post by 11025 on May 25, 2016 14:18:44 GMT
The SS loan was going to be for £280k. Since SS retain interest and some fees at drawdown, a loan that size would have produces net proceeds to the borrower of about the £250k capital owed to FS. But the borrower would have needed another ~30k to pay the FS interest and fees, and that would have needed to come from somewhere else. Which suggests a couple of possible reasons for the SS loan not happening... - SS didn't want to lend £280k on a property with a 90-value of £250k
- The borrower couldn't raise the cash needed to pay the interest/fees on the SS loan.
I wonder why he didn't cut his losses somewhat by saving one of the two boatyards linked on the SS deal rather than what seems to be losing both, with some loss also to FS lenders. The full story is yet to be revealed. The story about "sorting out his SIPPS" seems blatantly irrelevant (if true) now. Clearly he has been lying to FS about forthcoming funds for many months. I agree , I looks like SS maybe got a glimpse of the real story.
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