adrian77
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Post by adrian77 on Jul 18, 2018 12:42:14 GMT
Just been to the auction site and this has been withdrawn for the second time in a row! What on earth are FS playing at - I would say get rid of this damn development before I hit post-retirement and if need be take a 50% loss and FS can pay the auction withdrawal fees. This must be costing FS (us!) money for insurance, rates , secutrity etc and the entire North West must know this one is a right lemon! Gordon Bennett - however long is this one going to drag on for...
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adrian77
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Post by adrian77 on Jul 18, 2018 18:19:29 GMT
update to my last post
wondering if this one is going in my FA league
Personally I just can't see this one being worth anything near £1m - just seen a flat for sale for 10K in Liverpool...is there anybody with local expertise who could comment on what this damn development is probably worth. Granted some flats in Liverpool are very expensive but there are loads of cheap ones on the market...
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Post by solicitorious on Jul 19, 2018 10:54:15 GMT
Formby ain't Liverpool. If it was in the south it'd be Surrey. A quiet dormitory town with quick rail connection to the city centre. Lawyers, doctors, accountants, footballers, beach, pinewoods, red squirrels, natterjack toads, Tory councillors (another endangered species on Merseyside)... www.allertonoak.net/merseySights/OutlyingAreasHA.html
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adrian77
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Post by adrian77 on Jul 20, 2018 7:01:49 GMT
glad to hear it is one of the better outer areas - however not exactly flying off the shelvers is it
Have compared to other 2 bed flats in the area and I still think £1m is pretty optimistic. If this was one of my investments I would guess about £700K before I started extensive DD (hello FS).
Can anybody who deals in the area comment
I thank you.
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Steerpike
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Post by Steerpike on Jul 25, 2018 10:03:28 GMT
Chat 25-Jul-18
Q. It is now five weeks since the meeting with the confident broker, please can you say how much more time you will allow for refinance before taking effective recovery action?
A. "We are still working with the broker and borrower in order to gain further information for the valuation report. We are still working hard to achieve a positive outcome and once we gain furter information it can be posted onto the loan page. Unfortunately I do not have any information on a specific timescale for this loan, however I will enquire about this and see if there is any additional information able to be added to the loan page."
That makes little sense, there have been two valuations this year, so what more information can be required? It seems likely that auction will be the exit and it is just a question of when, perhaps £500k to £700k later this year?
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Post by brightspark on Jul 25, 2018 19:46:32 GMT
This is more of kicking the can down the road. When the next financial crisis occurs FS investors are going to be cleaned out. Fortunately i will not be one of them as I am practically disinvested apart from 5 small loans including a bit of this piece of rubbish.
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adrian77
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Post by adrian77 on Jul 25, 2018 21:45:41 GMT
exactly what I thought - considering it is still not sold we both can't be that far off the mark?
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r00lish67
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Post by r00lish67 on Jul 26, 2018 8:41:01 GMT
This is more of kicking the can down the road. When the next financial crisis occurs FS investors are going to be cleaned out. Fortunately i will not be one of them as I am practically disinvested apart from 5 small loans including a bit of this piece of rubbish. via Imgflip Meme GeneratorCatch you guys back here in September.
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goofy115
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Post by goofy115 on Jul 26, 2018 9:39:20 GMT
Latest update posted on the 25th of July:
‘Refinance is ongoing and confirmed by the broker although the valuation report has still not been issued. In the meantime we have identified 2 potential developers who would take the property as a complete unit. Discussions ongoing. Additionally we have contacted Allsops to have the property listed in their September auction. These are both precautionary measures in case the refinance does not complete.’
In all likelihood it will go to auction.Whether it’s the one in September is another matter.
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adrian77
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Post by adrian77 on Jul 26, 2018 10:06:33 GMT
if it goes to auction in September that will be 14 months late!
Of course there is no guarantee it will sell then even if the price is realistic....all UK developers must know by now this one is a complete lemon and will bid accordingly!
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goofy115
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Post by goofy115 on Aug 17, 2018 9:23:28 GMT
The following update was posted yesterday.
We have spoken today with the broker who confirmed that, despite a lull due to holidays, everything is on track. We are still awaiting results of valuation but that is not considered to be an issue. We have, in the meantime, been in discussion with 2 parties who might purchase the building outright. Discussions are still ongoing. The discussion with the auction house was unsatisfactory.
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james21
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Post by james21 on Aug 17, 2018 10:41:24 GMT
The following update was posted yesterday. We have spoken today with the broker who confirmed that, despite a lull due to holidays, everything is on track. We are still awaiting results of valuation but that is not considered to be an issue. We have, in the meantime, been in discussion with 2 parties who might purchase the building outright. Discussions are still ongoing. The discussion with the auction house was unsatisfactory. Had to chuckle when I read that "everything is on track" hilarious
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adrian77
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Post by adrian77 on Aug 17, 2018 10:46:25 GMT
How many valuations has this development had! Maybe in a tiny hamlet like Liverpool it is difficult to find a commercial valuer you can evaluate a property within 3 months?
I guess FS are paying the ground rent etc for this one so goodness knows what that costs - not sure if they have to pay rates (long time since I had an empty new build)
What discussions with the auction house ? This development is not listed with them - withdrawn lot no 3 ?
Yet again we are getting weasel words about an "imminent" purchase but it just goes on and on and on - in fact this one is now very nearly a year late.
To be honest I suspect if these buyers aren't stupid and realise they have FS over a barrel and have gone in at £0.5m which is exactly what I would do and all this "delay do to holidays etc" is FS speak for "we only have silly offers but are playing for time whilst we dream of finding somebody stupid enough to pay way over the odds for this one" - just my opinion.
Personally I expect to lose at least 50% of my investment - bother!
As we say in Germany Gordon Von Bennett!
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Steerpike
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Post by Steerpike on Aug 17, 2018 11:52:46 GMT
The only way that this saga makes sense is if the borrower has already made his profit out of the £1,072,000 borrowed against this property and he has some developer friends that will pick it up for between say £400,000 and £650,000 (at auction?) so that they can tidy it up and make their profit. Of course the outcome for lenders is not quite so good, with no interest and no capital return on the 2nd and 3rd loans and 1st loan returning no interest and about 50%-80% of capital.
The unknown is how long FS will delay the inevitable.
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james21
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Post by james21 on Aug 17, 2018 12:06:58 GMT
The only way that this saga makes sense is if the borrower has already made his profit out of the £1,072,000 borrowed against this property and he has some developer friends that will pick it up for between say £400,000 and £650,000 (at auction?) so that they can tidy it up and make their profit. Of course the outcome for lenders is not quite so good, with no interest and no capital return on the 2nd and 3rd loans and 1st loan returning no interest and about 50%-70% of capital. The unknown is how long FS will delay the inevitable. This is a fair summary in my opinion, some developers will take their profit element from the money lent (if things look less favourable with the development) and not rely on the difference between what it cost them all in and what it fetches as their profit. Although the latter is what I would expect a respectable developer to do. In this case it will likely have been the former. Its a finished block apart from a bit of internal works so has a value and a deal will be done one way or another, it is only a matter of time. I think we all know the outcome for investors its a matter of how much we will lose, should know soon
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