ozboy
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Post by ozboy on Aug 25, 2016 21:01:37 GMT
2309385453 Industrial Unit in Wallasey - Slightly mystifying to me this one. Lower LTVs usually get snapped up (this one 41.8%) but this is taking its time to fill, plus it's Freehold and a 1st Charge. However, buried in the Valuation is that a small amount of Japanese Knotweed has been discovered, is being dealt with, and the Valuer says this doesn't have a significant impact on the Valuation?!!! What do my fellow P2P Investors think of this one, given the uplift to 13% plus 0.5% for £5K to £9.999K?  |
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locutus
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Post by locutus on Aug 25, 2016 21:18:59 GMT
I think knotweed is fairly easy to treat and not such a big deal. However, mortgage companies will be very reluctant to lend on any site which has had knotweed so the borrower may struggle to get his commercial loan to pay the lenders back. I've still not made my mind up about this one.
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ozboy
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Post by ozboy on Aug 25, 2016 21:22:58 GMT
Thanks locutus, very good point. One which I wouldn't have thought of because I'm not overly bright.
Which is why I am grateful for this platform!
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locutus
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Post by locutus on Aug 25, 2016 21:43:30 GMT
All the comparables are to much more modern developments so I'm not convinced the rental value will stand up. Having said that, 42% LTV with 1st legal charge leaves a lot of buffer in case this one defaults. It could take up to a year to sell on though so that is also important to keep in mind.
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oldgrumpy
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Post by oldgrumpy on Aug 25, 2016 21:48:53 GMT
The J. Knotweed is more effectively and quickly eradicated now than even just a few years ago, when it was extremely difficult. It does need checking on regularly for a few years after though, just in case.
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ilmoro
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Post by ilmoro on Aug 25, 2016 21:52:33 GMT
I think knotweed is fairly easy to treat and not such a big deal. However, mortgage companies will be very reluctant to lend on any site which has had knotweed so the borrower may struggle to get his commercial loan to pay the lenders back. I've still not made my mind up about this one. Dont think it is, takes months if not years and means any spoil from the site is potentially a controlled substance as it could have knotweed in it. www.gov.uk/guidance/prevent-japanese-knotweed-from-spreading
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locutus
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Post by locutus on Aug 25, 2016 22:14:41 GMT
I think knotweed is fairly easy to treat and not such a big deal. However, mortgage companies will be very reluctant to lend on any site which has had knotweed so the borrower may struggle to get his commercial loan to pay the lenders back. I've still not made my mind up about this one. Dont think it is, takes months if not years and means any spoil from the site is potentially a controlled substance as it could have knotweed in it. www.gov.uk/guidance/prevent-japanese-knotweed-from-spreadingGood find. A gardener contact of mine doesn't think knotweed is a big deal to get rid of but the government website makes it sound much scarier. The truth is probably somewhere in between. Either way, I think I'll give this a miss. I don't get the valuation. The property is untenanted and the buyer is looking to get a 10% yield after doing renovations. I see industrial units up for auction with sitting tenants that already pay well above 10% so the venture doesn't seem to add up to me.
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jcm9000
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Post by jcm9000 on Aug 26, 2016 7:59:37 GMT
As a side story, a guy in my mum's street with a relatively new build house had to pull his house down brick by brick as it got into the foundations, currently trying to eradicate japanese knotweed, once done will rebuild brick by brick. All at his own cost (I suspect he didn't have insurance or didn't read the fine print). Lucky the guy is a builder. Anyway, fact is knotweed was everywhere before the hype in the press, it is still everywhere, and mortgage lenders will probably just look for proof it is being professionally dealt with. See: www.cml.org.uk/policy/policy-updates/all/japanese-knotweed/ |
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Aug 26, 2016 9:34:59 GMT
As a side story, a guy in my mum's street with a relatively new build house had to pull his house down brick by brick as it got into the foundations, currently trying to eradicate japanese knotweed, once done will rebuild brick by brick. All at his own cost (I suspect he didn't have insurance or didn't read the fine print). Lucky the guy is a builder. Anyway, fact is knotweed was everywhere before the hype in the press, it is still everywhere, and mortgage lenders will probably just look for proof it is being professionally dealt with. See: www.cml.org.uk/policy/policy-updates/all/japanese-knotweed/Hum, I wonder how much bigger the property will be, when rebuilt? 
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ozboy
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Post by ozboy on Aug 26, 2016 11:00:45 GMT
Again, thanks Gentlemen, all valuable contributions and food for thought.
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ilmoro
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Post by ilmoro on Aug 28, 2016 11:29:18 GMT
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am
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Post by am on Aug 28, 2016 12:14:02 GMT
By reputation all Fallopia japonica plants in Britain are female, and in the absence of males don't produce seed (except for the occasional hybrid with Russian vine), so if you can kill off a colony it won't reappear from a seed bank. (I do wonder why it's so widespread if it only spreads vegetatively). The problem with it is that it has a persistent root system which is difficult to kill off, and that it's capable of damaging buildings. It can be seen off with repeated treatment with glyphosate - particularly if the glyphosate is injected into the (hollow) stems. I've read reports that consistent mowing or grazing (hire a goat) will see it off as well.
There are several colonies on the open ground next to the railway line near my home. One colony, next to the rear of the garden of an adjoining house, has been exterminated. (I think that the householder took action, perhaps because it was threatening to spread into his garden.)
The other problem with knotweed is that it outcompetes native plants. Biological controls are being trialled.
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Post by martin44 on Aug 28, 2016 12:41:41 GMT
Squirt it with Roundup, i use this all around our place and it works... TIP. do not use in breezy weather, it kills everything it touches.  |
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oldgrumpy
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Post by oldgrumpy on Aug 28, 2016 12:46:32 GMT
Squirt it with Roundup, i use this all around our place and it works... TIP. do not use in breezy weather, it kills everything it touches. I think (k)not. Japanese Knotweed is in a totally different league to your average " 'allo mate!" dandelion or hawkweed. edit: Ignore that. Apparently it is the recommended method for use in the garden. I think deeper infestations require a lot more severe treatment.
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SteveT
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Post by SteveT on Aug 28, 2016 12:47:40 GMT
Squirt it with Roundup, i use this all around our place and it works... TIP. do not use in breezy weather, it kills everything it touches. Roundup is simply Monsanto's trademarked brand of glyphosate. Much cheaper to buy generic glyphosate concentrate and dilute as instructed (5L of Gallup 360 can be had for £25 on Amazon and lasts me a year or two of regular weed-killing)
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