Edit: I keep loosing your quote. What you said was 'The most impotent thing for us investors...' But it seems to have got to me too!
Spelling mistake terminated....
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The property is totally complete and refined. So that's the end valuation for me. The market is not going to go up anytime soon (at best will stay stable), so how would this lady pay the fees for bridging finance? Is she really hopying to resell at short time distance with a profit (for having done what?).
I don't see this being a market where you can buy, wait and hope to resell higher... so I am out of this. I see much much more value in some older loans (even on the SM now)
I think she just thinks it be nice to have a large portfolio of property which I am sure we all would, however the logic of this escapes me. Even if she was renting it out once brought I doubt that would even cover the fees/interest to SS.
There is no work to be done and she is not getting a bargin so unlikely be any significant growth in property prices, especially not to keep up with the amount SS charge. If she pays £2.2 million like the valuation reports says she must be mad paying that much more then the property is worth. If she pays £2.2 million she must have a £1 million in change hanging around she be far better of finding a property for that amount and having no mortage/loan to pay.
The valuer viewed the property on Referendum day and wrote the report on 27th June when the shock of Brexit was very fresh in the mind. I suspect the valuer provided a very cautious valuation, that could easily explain the variation from the purchase price.
Personally I think it is one of the better ones recently. Relatively easy to sell on if issues with borrower and likelihood of loss low. Defaults are to be expected in bridging loans, the quality of the asset is the most important thing and this looks fine with a first charge.