micky
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Post by micky on Aug 31, 2017 14:31:20 GMT
Have you read this update from 2 weeks ago?
16/08/2017
The first charge receivers have now placed the property on the market at £2.45m. No offers have yet been received although 10 parties have made enquiries, many of these being viewings.
The receiver has confirmed that the debt due to the first charge holder is £1.8m. Total debt on this facility is £625k plus interest. For those invested in loan reference 3867743062, the total debt is £725k – as this loan ranks behind the other loans.
There is, of course, equity in the other two properties, which we estimate to be around £300k. In discussion with our receivers, we have decided to hold off on the sale process of these until the outcome of the main property becomes more certain.
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djpix99
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Post by djpix99 on Aug 31, 2017 14:36:04 GMT
Thanks for that, i'm in 1223006016 where the last update was 15/7/2017, they must have forgotten to post the update on that loan.
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djpix99
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Post by djpix99 on Aug 31, 2017 14:39:01 GMT
P.S. nice to see some movement.
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Liz
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Post by Liz on Aug 31, 2017 16:56:31 GMT
Thanks for that, i'm in 1223006016 where the last update was 15/7/2017, they must have forgotten to post the update on that loan. I wouldn't be feeling very positive on this one, once the accrued interest to the 1st charge holder have been paid, receivers, selling costs etc, then I don't expect there will be much left.
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Post by scrooge on Sept 4, 2017 7:47:02 GMT
Agreed. With the first charge holder running the show, they'll take any offer that comes their way and we'll be wiped out. As for the equity in the other properties.......
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09dolphin
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Post by 09dolphin on Sept 4, 2017 8:52:52 GMT
I emailed FS asking why they'd made further loans available - taking account of the progress made by the borrower. I did say that I intended to publish their reply on the Independent Forum.
Alas. They basically told me that they couldn't give any information as this would disadvantage investors who didn't use or access the Independent Forum and suggested I read the updates.
As this response is unacceptable to me I now intend to make a complaint to the FSA.
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adrian77
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Post by adrian77 on Sept 4, 2017 10:48:36 GMT
Totally agree but have FS £1m or whatever to spare? I deal in distressed property and in my humble opinion this chap has 2 mega problems
1) he has started to spend £quillions on updating an already nice house- OK this may work in Belgravia for a dodgy Russian oligarch but I really don't think it was a sensible move in North Yorkshire (I am based nearby). This is a very specialist market for expert architects etc who know what they are doing.
2) he has run out of money before completion - utter and complete disaster - not least as a lot of builders won't touch such a property due to insurance and other issues. How easy is it to get a mortgage on an unfinished property - not very!
Sadly I don't deal at this high end of the market but personally I think FS will be lucky to come out with £1m after expenses etc. Believe me I know several very wealthy individuals in the area and they would all smell blood and really hammer the price down as they could buy for cash and pay to complete the work....hands up all of those of us who have say £2m cash reserves!
I don't even think a forced sale of all the 3 properties will cover this one....will be interesting to see where this one ends up!
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Doc
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Post by Doc on Sept 4, 2017 12:02:12 GMT
These loans were given a 15/16% rate for a reason.
I think a good proportion of lenders in P2P don't fully appreciate all the risks involved with P2P lending.
Excessive valuations are common across all the the platforms, it is up to lenders to do their own DD to determine if the valuations are reasonable or not. It appears in this case that all three final completion valuations from Kempston-Parkes, Ashtons and Fine & Country were excessively optimistic.
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r1200gs
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Post by r1200gs on Sept 4, 2017 12:39:08 GMT
These loans were given a 15/16% rate for a reason. I think a good proportion of lenders in P2P don't fully appreciate all the risks involved with P2P lending. Excessive valuations are common across all the the platforms, it is up to lenders to do their own DD to determine if the valuations are reasonable or not. It appears in this case that all three final completion valuations from Kempston-Parkes, Ashtons and Fine & Country were excessively optimistic. Giving better rates does not remove a platforms responsibility when it comes to accurately describing a loan. Yes, it is wise for investors to do their own DD, but again this does not allow the platform to mislead investors, deliberately or otherwise. I'm not the only one stuck in a loan where investors were grossly mislead and it's simply not on. Platforms that are taking valuations at face value and posting developers dreams and wishes as facts on development tranches are going to have a limited life. Whitehaven has some very big hitters and I am quite sure they are not going to take a massive capital loss with nothing more than a shrug because the interest rate was pretty good.
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Post by bonfemme on Sept 20, 2017 10:02:34 GMT
Update been posted this morning.
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adrian77
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Post by adrian77 on Sept 20, 2017 19:15:48 GMT
Ref : The receiver has confirmed that the debt due to the first charge holder is £1.8m. Total debt on this facility is £625k plus interest.
I note the current asking price at £2.45m is over £1m less than the lowest original valuation- does not mean it will be achieved! In my experience 30% below asking price is typical for distressed sales. Considering there are mega legal, and administration fees etc still to pay I really can't see 100% recovery here....in fact I will be very surprised if 50% is recovered...
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mikes1531
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Post by mikes1531 on Sept 20, 2017 21:07:40 GMT
Ref : The receiver has confirmed that the debt due to the first charge holder is £1.8m. Total debt on this facility is £625k plus interest. I note the current asking price at £2.45m is over £1m less than the lowest original valuation- does not mean it will be achieved! In my experience 30% below asking price is typical for distressed sales. Considering there are mega legal, and administration fees etc still to pay I really can't see 100% recovery here....in fact I will be very surprised if 50% is recovered... Anything less than the full recovery of principal and accrued interest for the holders of the first-ranking £625k of FS lending would be an absolute disaster for the investors in the £100k second-ranking FS loan -- they'd not receive even a penny of their investment back!
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adrian77
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Post by adrian77 on Sept 21, 2017 13:48:57 GMT
agreed - if this does sell for 30% below asking price then that is under the £1.8m before legal fees etc - I am no legal expert but if the first charge is not 100% recovered then I think the first charge holder could bring a claim against FS?
Sqeeky bum time for FS and their lenders.....
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phil
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Post by phil on Sept 21, 2017 15:32:50 GMT
agreed - if this does sell for 30% below asking price then that is under the £1.8m before legal fees etc - I am no legal expert but if the first charge is not 100% recovered then I think the first charge holder could bring a claim against FS? Sqeeky bum time for FS and their lenders..... I'm not a legal expert either but pure common sense would dictate that first charge holder is wholly responsible for their decision to lend and they can hardly blame a second charge holder for any losses they incur. I'd be astonished to learn otherwise.
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micky
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Post by micky on Sept 21, 2017 17:55:24 GMT
Sorry but I can't follow your thought process adrian, please explain.
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