rogerthat
Member of DD Central
Posts: 2,048 
Likes: 1,994
|
Post by rogerthat on Aug 16, 2018 22:33:33 GMT
Could someone clarify what this update means please ? especially as there was a previous update which stated
"22/01/2018
We met with the borrower. A settlement figure has been agreed with the insurance company which will be sufficient to pay all interest on the loan. Revised plans were submitted some months back to replace the building with six dwellings"
"2 hours ago (16/08/18 )
We met with the borrower today:
1. On the insurance, they are waiting for counsel (barrister) opinion prior to meeting with the other side so as to strengthen their position. We re-iterated the point that they should settle for a reasonable sum.
2. On the planning, this has still not been granted although technically beyond service level targets "
|
|
empirica
Member of DD Central
Posts: 326
Likes: 235
|
Post by empirica on Aug 16, 2018 22:43:45 GMT
In general, I read that as FS saying: "Things are plodding along, but the ball isn't in our court (for once)."  If there is something more specific on which you require elucidation, you'll probably have to ask FS. |
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Aug 16, 2018 22:48:14 GMT
In general, I read that as FS saying: "Things are plodding along, but the ball isn't in our court (for once)." If there is something more specific on which you require elucidation, you'll probably have to ask FS. The server went down as I tried to post so you may not have seen my edit ?
|
|
|
|
Post by crystal on Aug 17, 2018 5:06:16 GMT
It sounds like the insurance issue is intertwined with legal action - hence a dose of uncertainty.
It is possible that a preapp was underway ‘some months back’ before January (where the scheme would have been discussed with the LPA) - though this is not the same as making a planning application or what is normally meant by most as ‘plans submitted’. The application was validated by the LPA in mid Feb 2018. It is possibly just inexperience but this (mis)description by FS has been given on other schemes also.
Given that the valuation of many schemes is heavily reliant on planning gain, it would be preferable if when stating plans have been submitted, that FS always provide the planning reference number given by the relevant LPA.
|
|
coop
Member of DD Central
Posts: 714
Likes: 571
|
Post by coop on Aug 17, 2018 9:22:30 GMT
I would take it that FS are encouraging them to settle with the insurer for 80-90% value of the claim, the borrower thinks they can get legal advice and hold out for more.
The wisdom of doing so when you owe £805k @ 13% pa is somewhat questionable. Every extra day they wait to settle will cost them £286 in interest. If they wait 2 weeks and the offer only gets increased by 2 grand they actually lose 2 grand...
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Aug 17, 2018 9:44:27 GMT
It sounds like the insurance issue is intertwined with legal action - hence a dose of uncertainty. It is possible that a preapp was underway ‘some months back’ before January (where the scheme would have been discussed with the LPA) - though this is not the same as making a planning application or what is normally meant by most as ‘plans submitted’. The application was validated by the LPA in mid Feb 2018. It is possibly just inexperience but this (mis)description by FS has been given on other schemes also. Given that the valuation of many schemes is heavily reliant on planning gain, it would be preferable if when stating plans have been submitted, that FS always provide the planning reference number given by the relevant LPA.Agreed.. this has been mentioned before
|
|
ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,168
Likes: 4,859
|
Post by ozboy on Aug 17, 2018 10:11:32 GMT
This is FS remember, why should they go to the bother of providing further information about an offered Loan when you'll only discover it's more than likely to be a steaming pile of excrement.
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Aug 17, 2018 10:56:56 GMT
I would take it that FS are encouraging them to settle with the insurer for 80-90% value of the claim, the borrower thinks they can get legal advice and hold out for more. The wisdom of doing so when you owe £805k @ 13% pa is somewhat questionable. Every extra day they wait to settle will cost them £286 in interest. If they wait 2 weeks and the offer only gets increased by 2 grand they actually lose 2 grand... Ok..so a back of a fag packet calculation suggests the borrower will owe as of tomorrow v approx. £1.14m (£880K cap + £134K int ) and if he gets £760K on the insurance and pays that all over to FS (legal undertaking ?) hes still £254K short. Interest is accruing at £315 a day, with a heap of rubble and no PA as of yet. Im wrong aren't I ?..sussed it..got there in the end 
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Aug 17, 2018 11:20:28 GMT
bascially I don't think so but I though the loans total £880K and due to my rough calculation insterest with interest this will be over £1m with him being £240K short - whatever not looking good except I don't know what this could fetch as a building plot so he may get away with it...
As discussed we think this one was funded by a different platform where a local resident warned this was a "hot" area - well he was right there both literally and metaphorically!
Didn't FS check the insurance ?
I really don't like the sound of the above - talk about a godsend for the insurance company!
And what happens if the broker goes bust...
I read his comment and did not invest in the second loan - just love this forum!
OK I was an idiot for investing in the first one but nothing ventured....
|
|
paulb
Member of DD Central
Posts: 131
Likes: 112
|
Post by paulb on Aug 17, 2018 11:23:45 GMT
And what happens if the broker goes bust... It appears (assuming the update is accurate) that the broker has insurance, which presumably would still pay out even if the broker disappears.
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Aug 17, 2018 11:28:26 GMT
bascially I don't think so but I though the loans total £880K and due to my rough calculation insterest with interest this will be over £1m with him being £240K short - whatever not looking good except I don't know what this could fetch as a building plot so he may get away with it... As discussed we think this one was funded by a different platform where a local resident warned this was a "hot" area - well he was right there both literally and metaphorically! Didn't FS check the insurance ? I really don't like the sound of the above - talk about a godsend for the insurance company! And what happens if the broker goes bust... I read his comment and did not invest in the second loan - just love this forum! OK I was an idiot for investing in the first one but nothing ventured.... Jeepers its even worse than that as I see there was a supplemental loan of £75K  ..and no I didn't..but im in the first..give it 5 and I will recalculate
|
|
adrian77
Member of DD Central
Posts: 3,920
Likes: 4,145
|
Post by adrian77 on Aug 17, 2018 19:34:30 GMT
have re-read the original FS post :
I am puzzled - are the insurance going to pay out about £800K or whatever on a derelict building and allow the owner to keep the plot ? Or is the insurer offering the money in return for the plot. If the former then surely he would have to sell the land to make good the FS loan but will make a lot more than the £250K or whatever shortfall.
I was thinking this was going to be another loss but now I just don't know.
I thank you.
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Aug 17, 2018 19:40:00 GMT
have re-read the original FS post : I am puzzled - are the insurance going to pay out about £800K or whatever on a derelict building and allow the owner to keep the plot ? Or is the insurer offering the money in return for the plot. If the former then surely he would have to sell the land to make good the FS loan but will make a lot more than the £250K or whatever shortfall. I was thinking this was going to be another loss but now I just don't know. I thank you. The building has already been demolished..see update 11/04/2108
|
|
coop
Member of DD Central
Posts: 714
Likes: 571
|
Post by coop on Sept 7, 2018 10:12:55 GMT
substance-less update, still no planning, still no insurance payout. Capital owed £805k (£53k of this was borrowed from FS lenders to repay interest to other FS lenders who were in on the original £730k loan ) Interest owed £128.8k and rising by about £285 a day. Insurance payout was expected "in a few weeks" when this loan went live in June 2017. What a farce. |
|
coop
Member of DD Central
Posts: 714
Likes: 571
|
Post by coop on Oct 23, 2018 10:30:28 GMT
substance-less update, still no planning, still no insurance payout. Capital owed £805k (£53k of this was borrowed from FS lenders to repay interest to other FS lenders who were in on the original £730k loan ) Interest owed £128.8k and rising by about £285 a day. Insurance payout was expected "in a few weeks" when this loan went live in June 2017. What a farce. I've no idea what my maffs was doing... £75K was borrowed to service interest from original loan (maybe my hand was in the wrong place over the numberpad...) Interest owed on this loan now £142.2k plus the £75k means they're down about £217k in interest if/when it all gets paid. 30% of the original loan value! There was another meeting last week, wonder how that went!
|
|
..and no I didn't..but im in the first..give it 5 and I will recalculate