baldpate
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Post by baldpate on Jun 10, 2017 11:21:27 GMT
I don't understand the 42% statement: Once settled, the borrower plans to rebuild the property into 4 flats within its existing boundaries, consistent with the residual valuation of £1.25m.
LTV: 64% against original valuation; 42% against revised valuation plus estimated insurance payout.I can only assume that FS are relying on the fact (clearly stated in their post of 4th Jan 2017, earlier in this discussion thread) that the insurance company are obliged to pay the proceeds to FS. At which point FS would hold: 1st charge over land and burnt-out building, currently valued at £1,150K, PLUS the insurance monies, currently estimated at £760 = total estimated security value £1,910K. Against a loan of £805K, that's 42% LTV. If it all goes to plan, and this loan could be repayed in a few months, with the borrower taking out a much smaller loan for the difference necessary to pay the interest & to complete the development. A lot of uncertainties though (timing of insurance payout, amount, whether the currently proposed development is really allowed under permitted development rights, whether the valuer has got his sums right ...)! In particular, I note that FS have not made the same clear assertion (about insurance monies coming directly to them) in the loan description.
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shimself
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Post by shimself on Jun 10, 2017 12:03:29 GMT
I don't understand the 42% statement: Once settled, the borrower plans to rebuild the property into 4 flats within its existing boundaries, consistent with the residual valuation of £1.25m.
LTV: 64% against original valuation; 42% against revised valuation plus estimated insurance payout.I can only assume that FS are relying on the fact (clearly stated in their post of 4th Jan 2017, earlier in this discussion thread) that the insurance company are obliged to pay the proceeds to FS. At which point FS would hold: 1st charge over land and burnt-out building, currently valued at £1,150K, PLUS the insurance monies, currently estimated at £760 = total estimated security value £1,910K. Against a loan of £805K, that's 42% LTV. .... Which would lead to the absurd situation of a loan of borrowing 805K and allowing the the lender to hold 760K.
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rogerthat
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Post by rogerthat on Sept 29, 2017 12:08:19 GMT
Does this ring any bells with anyone on another P2P fairly recently..I mean other than the Fire Brigade ones ?
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adrian77
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Post by adrian77 on Sept 29, 2017 19:42:15 GMT
it most certainly does - I am sure I recognise the house from the same or very similar photo.
Also if I remember correctly a local resident warned this was in a hot (!) area and said security etc would be an issue. Were some tools stolen from this site?
If this was a case of arson then what is to stop it happening again?
Of course we may not be talking about the same house - wonder if FS have checked this one
thoroughly. I feel sorry for the developer but however much is all this delay etc costing him ...
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rogerthat
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Post by rogerthat on Sept 29, 2017 21:43:15 GMT
I set my bait hoping that you might respond  ..the moment I saw this loan, alarm bells were ringing. If I recall, the Fire Brigade and/or Plod were dragging their heels on a report to ascertain whether the blaze was completely accidental..or not. As a result the insurance company were in no rush to pay out..and the last I read of this on 'the other' P2P the estimation of any likely settlement would be a figure ive read elsewhere, very recently. And yes, the photo looked familiar too ! I let this one go..surprise surprise One presumes that the 'other P2P ' didn't follow this through ?  |
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rogerthat
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Post by rogerthat on Sept 30, 2017 10:44:21 GMT
it most certainly does - I am sure I recognise the house from the same or very similar photo. Also if I remember correctly a local resident warned this was in a hot (!) area and said security etc would be an issue. Were some tools stolen from this site? If this was a case of arson then what is to stop it happening again? Of course we may not be talking about the same house - wonder if FS have checked this one thoroughly. I feel sorry for the developer but however much is all this delay etc costing him ... By the way, I notice that on 'the other' P2P the Liverpool 37 pre-sold flats company has raised the extra funds to complete the development (by end of year ? )..don't know whether you had funds in that (I have £1K spread over 4 tranches)..so hopefully that's one less headache (at 2% penalty interest) leaving the esteemed Hotel California left. What the outcome of that is going to be is anybody's guess
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adrian77
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Post by adrian77 on Sept 30, 2017 18:28:52 GMT
I have 100% sold my FC holdings - just interested in how Hotel California and a few others pan out - my guess is that they will contest any legal action and make an offer of say 10p in the Pound to settle. I guess it all hinges on what they actually own and how much it is worth.
The thought of all the legal expense here to untangle what on earth has happened may be too much for FC to consider adding to the administrator's fee. I am no expert but I really don't expect any repayment anytime soon. Personally I think there is potential for a class action by the lenders (I sold out when I smelt a rat).
To be honest I have checked the FS valuation by my own DD-most standard items such as watches etc seem very reasonable but about 50% of property ones look very problematic to me - I am disappointed as this is what I was getting from FC! I am telling you as an small developer the costings for the mill in Accrington are a joke and I would genuinely hope the borrower knows what he is doing and if he doesn't he takes professional advice from a local architect/builder before he hits a mega problem.
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rogerthat
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Post by rogerthat on Sept 30, 2017 18:48:51 GMT
Not into Accrington..or Stanley ..but I do like the idea of no fees...unfortunately all P2P's rely on valuations of one sort or another..time will tell.. |
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Post by mrclondon on Jan 23, 2018 13:04:07 GMT
Latest update states " A settlement figure has been agreed with the insurance company which will be sufficient to pay all interest on the loan." which since the loan is only 6 weeks over due is not a huge sum outstanding. IIRC there was hope the insurance funds would more or less cover the capital itself.
The update goes on to say that the planning application has taken a back seat to avoid prejudicing the insurance claim, but is now being progressed.
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rogerthat
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Post by rogerthat on Jan 23, 2018 13:17:18 GMT
Latest update states " A settlement figure has been agreed with the insurance company which will be sufficient to pay all interest on the loan." which since the loan is only 6 weeks over due is not a huge sum outstanding. IIRC there was hope the insurance funds would more or less cover the capital itself. The update goes on to say that the planning application has taken a back seat to avoid prejudicing the insurance claim, but is now being progressed. Noted earlier..this was definitely one that migrated (along with myself) from another P2P..not that I'll ever find out but id be interested to know what the settlement figure is/was..certainly taken a long time to be resolved. Potentially a valuable site and I think the explanation given is reasonably plausible..one to watch...mebbe
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Mousey
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Post by Mousey on Mar 2, 2018 13:17:40 GMT
Just been updated:
"Borrower is still waiting for the insurance to be settled. In the meantime, the building has been demolished."
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Mousey
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Post by Mousey on Apr 20, 2018 11:23:13 GMT
There's been a couple of updates since. I'm not sure how privileged they are suffice to say the payout has yet to be forthcoming. Of note was "Borrower has agreed to a solicitors undertaking so that a substantial part of the debt be paid out of settlement proceeds" - I'm unsure why this was required as FS have previously advised in an update on 2888506800 dated 18/11/16 that "...the insurance proceeds, which would accrue to FundingSecure as the first change holder". Perhaps fundingsecure could confirm whether that update was indeed accurate. I was in the area yesterday evening and indeed it has been demolished.   |
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TheDriver
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Slightly bonkers
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Post by TheDriver on Jul 4, 2018 6:57:45 GMT
The last we were told is that the insurers had been put on notice to make an offer to settle by 20 June. Be good to know what the outcome was!
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Post by crystal on Jul 10, 2018 15:39:00 GMT
FS Update from 09/07
"Planning application is now registered on the portal under reference 18/****/F. We have been told that if there are no objections then it will not go to committee but will be approved by the planning department under delegated powers. The borrower is trying to ascertain whether there are any objections - although none are currently showing on the portal.
The 21 day notice to the insurers has lapsed with no response. Borrower is meeting his loss assessor tthis week to determine next steps."
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rogerthat
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Post by rogerthat on Jul 27, 2018 15:14:16 GMT
18 mins ago
We have just received an email chain from the borrower where the insurer's lawyers have responded requesting a number of documents; they have also requested a "without prejudice" meeting with a suggestion that they may wish to negotiate a settlement.
1 hour ago
We are still waiting for the planning to be approved. This seems to have been delayed as a result of holidays.
Summary...as you were then
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..the moment I saw this loan, alarm bells were ringing. If I recall, the Fire Brigade and/or Plod were dragging their heels on a report to ascertain whether the blaze was completely accidental..or not. As a result the insurance company were in no rush to pay out..and the last I read of this on 'the other' P2P the estimation of any likely settlement would be a figure ive read elsewhere, very recently. And yes, the photo looked familiar too ! I let this one go..surprise surprise
