mikes1531
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Post by mikes1531 on May 4, 2016 19:40:39 GMT
I don't know whether this loan deserves a separate thread, but here goes... One of the relatively unusual features of this loan is that, in addition to the usual first charge on the property, FS say they have a PG for extra security. Unfortunately, they have provided no further info regarding the PG that I can find. My questions for fundingsecure include... - Is the PG for the full amount of the loan (£484k)?
- If not, what amount is it limited to?
- Have FS been given an Assets & Liabilities statement for the guarantor that shows they have the wherewithal to honour the PG if that should be necessary?
The last question is rather important. I could give FS a PG covering every loan they have outstanding at the moment, but it wouldn't be of much use unless my net worth was sufficient to cover the potential obligations. A bit more info from FS about the PG would be most welcome.
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Post by mrclondon on May 4, 2016 19:52:03 GMT
This an unusual loan in so far as FS say they've seen an escrow account with the funds for development.
Given planning permission exists, the security seems reasonable cover for the loan IMO and the PG shouldn't be necessary. This is the only one of the current batch of loans I'm intending contributing to.
EDIT - referring to my favourite document of typical land values, 0.8 acres in Cheshire East with planning for residential development comes in at £640k providing a sense check of the valuation / purchase price of £720k
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Post by fundingsecure on May 4, 2016 20:41:25 GMT
MikeS
Yes, it is for the full amount and yes we have assets and liability statement.
Generally speaking we will take a PG where possible, although the main security has to be sufficient on its own merits. (As it is in this case) Although PG's are notoriously difficult to claim against we like to have it as a comfort security - if for no other reason than it indicates a level of committment from the borrower.
Hope this is helpful.
FundingSecure
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Post by earthbound on May 4, 2016 21:29:48 GMT
FS... IMO this seems to indicate a nice change of sentiment.. maybe lender orientated..
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woodland
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Post by woodland on Dec 11, 2017 18:36:44 GMT
So much for the PG! Loan in default & trying to recover some funds via the receivers.
Anyone else in this loan with any thoughts on the chances of recovery?
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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 Dec 12, 2017 15:25:20 GMT
So much for the PG! Loan in default & trying to recover some funds via the receivers. Anyone else in this loan with any thoughts on the chances of recovery? ... and we're saying goodbye to them all, 3/5 of 5/8 of fxxx all as the modified wartime ditty goes. The receivers costs could be high as well. Shock! Horror! that a PG may not be the safety belt it was once, in times of yore, touted to be in many inappropriate places. Some even took just PG as security. We live and learn.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 12, 2017 15:57:27 GMT
So much for the PG! Loan in default & trying to recover some funds via the receivers. Anyone else in this loan with any thoughts on the chances of recovery? ... and we're saying goodbye to them all, 3/5 of 5/8 of fxxx all as the modified wartime ditty goes. The receivers costs could be high as well. Shock! Horror! that a PG may not be the safety belt it was once, in times of yore, touted to be in many inappropriate places. Some even took just PG as security. We live and learn. Oh stub8535, you speak Strine!!!! And I'm impressed by your observations on PGs too! (Remove that tongue from your cheek immediately Sir!)
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IFISAcava
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Post by IFISAcava on Dec 12, 2017 16:53:50 GMT
... and we're saying goodbye to them all, 3/5 of 5/8 of fxxx all as the modified wartime ditty goes. The receivers costs could be high as well. Shock! Horror! that a PG may not be the safety belt it was once, in times of yore, touted to be in many inappropriate places. Some even took just PG as security. We live and learn. Oh stub8535, you speak Strine!!!! And I'm impressed by your observations on PGs too! (Remove that tongue from your cheek immediately Sir!) Ah yes, Hall and the hexohedronical ball.
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mikes1531
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Post by mikes1531 on Dec 13, 2017 3:49:38 GMT
So much for the PG! Loan in default & trying to recover some funds via the receivers. Anyone else in this loan with any thoughts on the chances of recovery? I was happy with this one at the beginning, and I'm still in it, but I'm a lot less enthusiastic now. The chance of success with the recovery may depend on the speed at which it happens. In re-reading the property description, I see that the PP for development was granted on 6/Mar/2015. If the PP came with the reasonably standard condition that it lapses unless the work starts within three years, it's going to lapse in less than three months unless someone goes to work in a hurry. If that happens, the receiver -- and FS investors -- will be set back to before square one! fundingsecure: Do you know if enough work has been done to have satisfied the "work must start by XX date" condition of the PP? If not, has the receiver taken any action to ensure the PP doesn't lapse? Could the potential buyer be delaying their purchase deliberately so as to be able to reduce their offer in the New Year because the PP has, or is about to, become lapsed? Also, have FS received an updated Assets/Liabilities statement from the borrower that shows the borrower still has the net worth to support the PG?
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woodland
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Post by woodland on Jan 2, 2018 18:21:51 GMT
New update today - sounds vaguely promising Thus far this is the only loan (out of around 30) that has defaulted for me so would be nice to get something back on this.
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james21
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Post by james21 on Jan 2, 2018 19:20:35 GMT
Am a bit more confident than I was having read the FS update, however I could not find any planning applications for the changes when I looked a week ago other than the original application. Hopefully all is well. Anyway when FS say exchange and completion will follow shortly read 2 months
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woodland
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Post by woodland on Jan 28, 2018 19:29:29 GMT
james21, looks like your lack of finding anything on the planning portal had some substance.
Update today : revised planning not granted, sale fallen through. Now trying to secure an extension of planning permission before it expires in March. 😢
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james21
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Post by james21 on Jul 18, 2018 19:47:32 GMT
18/1839D Cheshire East; Planning has been renewed as it was expiring, conditions have been discharged; the usual planning guff, environmental, landscape, nature conservation. To be fair the architect has come up with a good plan ready for a developer to take on the site, its all ready to go at the right price ( less than the loan value) . Note there is a busy railway line 100m away from the site, no one mentioned that blight. Anyway you can find better plots with planning in Congleton at a lower valuation than this one. Why do I feel I have done my money?
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adrian77
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Post by adrian77 on Jul 18, 2018 20:54:47 GMT
And I think FS paid for the planning (probably a sensible option but hate to think what it cost) Will see if this one is worthy of my FA league.
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woodland
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Post by woodland on Sept 27, 2018 21:43:04 GMT
I see this has been listed on Rightmove for a ‘fixed price’ of £700,000. (just shy of the original valuation of £720k). Would be dead chuffed if it can make that - this is my most overdue loan & would love to see it clear.
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