ben
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Post by ben on Jun 13, 2016 20:01:47 GMT
At the risk of stating the obvious, of course the effect in the examples mentioned about assumed 90 year lease extensions (which will cost a lot of money to get) is that the real loan to value percentage is much much higher than the stated 70% . the value of that one is about £1.5000,000 at moment as what it sold as so a lot higher then then 70%
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Post by brianac on Jun 13, 2016 20:07:32 GMT
Methinks someone wants a lot of money in a hurry.
you can draw your own conclusions.
Brian
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Post by harvey on Jun 13, 2016 20:11:29 GMT
If a fairly recent sale shows market value of the short lease is around 1.5 million and the loan is based on a value of over 3 million because of the lease extension assumption then in that particular case the LTV must be well over 100%.
If that's right I'm not interested for 12% and it's a pre fund 0 when I can get online again.
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Liz
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Post by Liz on Jun 13, 2016 20:12:53 GMT
Quick question; the valuation report on pbl110, is that based on the current state(before refurbishment) or when fully refurbished?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jun 13, 2016 20:15:14 GMT
Quick question; the valuation report on pbl110, is that based on the current state(before refurbishment) or when fully refurbished? As with some of the others (although I'm only really starting to get my teeth stuck in...), the valuation report for PBL110 states the following...
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Liz
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Post by Liz on Jun 13, 2016 20:17:17 GMT
Quick question; the valuation report on pbl110, is that based on the current state(before refurbishment) or when fully refurbished? As with some of the others (although I'm only really starting to get my teeth stuck in...), the valuation report for PBL110 states the following... Thanks, exactly what i couldnt find.
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Post by harvey on Jun 13, 2016 20:18:36 GMT
re: PBL110
Cooling dude beat me to it. I was just going to refer Liz to section 2.4.1 of the valuation report (General Condition).
The photographs of the state of the property at the time of inspection suggest there's quite a lot of money to be spent to bring it up to the standard assumed in the valuation - although it shouldn't be nearly as costly as the lease extension scenarios in some of the other valuation reports.
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ben
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Post by ben on Jun 13, 2016 20:25:40 GMT
re: PBL110 Cooling dude beat me to it. I was just going to refer Liz to section 2.4.1 of the valuation report (General Condition). The photographs of the state of the property at the time of inspection suggest there's quite a lot of money to be spent to bring it up to the standard assumed in the valuation - although it shouldn't be nearly as costly as the lease extension scenarios in some of the other valuation reports. These will be the first recent loans in SS I will not even bother prefunding. The borrower is going to be laughing all the way to the bank. He can quite happily let them all or some default and still be quids in.
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Post by richardb67 on Jun 13, 2016 20:28:05 GMT
obtained the following list of sold prices and dates from Nethouseprices as only a couple were on Zoopla. I'm not sure if that is reliable but where the sold prices were on Zoopla they were both the same.
Price and month sold
PBL 107 £1,436,000 Nov-15
PBL 108 £1,900,000 Mar-15
PBL 109 £1,600,000 Nov-14
PBL 110 £1,325,000 Feb-15
PBL 111 no data
PBL 112 no data
PBL 113 £1,265,000 Sep-14
PBL 114 £925,000 Mar-15
PBL 115 £1,100,000 Jan-15
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TitoPuente
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Post by TitoPuente on Jun 13, 2016 20:29:16 GMT
So while I'm waiting for the SS website to load so I can read the valuation reports  ... Anyone want to take a punt on the allocations. I'm going to guess these could be close to 80%, but wouldn't be surprised (considering the total size) if it is close to 100%. Or even 100% with some left over? Considering the behaviour of money going into PBL20 I tend to think that demand is being underestimated. I expect allocations to be below 50%.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jun 13, 2016 20:30:31 GMT
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Post by chielamangus on Jun 13, 2016 20:32:42 GMT
Does anyone have a handle on just how much the lease extensions would cost? My own experience in London 3-4 years ago was that pushing a lease up from around 70 years to 99 on a £250k flat would have cost, according to the agent, around £10k. From memory, there was some valuation body that could arbitrate on the cost if the leaseholder disagreed with the freeholder's proposal.
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Post by bracknellboy on Jun 13, 2016 20:37:14 GMT
My exposure to SS amounts to a rounding error on a rounding error as a %age of my p2p, so I'm hardly in a position to make much commentary. However, what on earth is the justification given by SS for presenting LTV values based on assumptions of lease lengths which are (so it is being said) simply fiction ? Have lease extensions been agreed already with agreed costs ? Has the borrower/SS confirmed that the borrower has the resources to meet the agreed prices ? And as for those on sub 25 year.... I may be missing something here as I know that the situation is somewhat different when yoiu are an owner / occupier. Perhaps the money is being raised in order to fund the lease extensions and refurbishments.....or is that all a bit circular  |
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Post by bracknellboy on Jun 13, 2016 20:41:17 GMT
Does anyone have a handle on just how much the lease extensions would cost? My own experience in London 3-4 years ago was that pushing a lease up from around 70 years to 99 on a £250k flat would have cost, according to the agent, around £10k. From memory, there was some valuation body that could arbitrate on the cost if the leaseholder disagreed with the freeholder's proposal. Can't really provide much insight but that has never stopped me in the past. As per my post above: I believe the situation may be considerably different for owner/occupier (Joe Bloggs) versus owned by company. This was result of some legislation or similar changes that I do remember when I was in leasehold in London a good few years ago; to avoid Joe public 'home owner' being stiffed. But I thought it was restricted to that scenario not company ownership. But I may be completely wrong.
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agent69
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Post by agent69 on Jun 13, 2016 20:41:17 GMT
In the living room with the Laptop You're making it sound like a game of Cluedo. Think I'll have a small punt on those with long leases
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