rogerthat
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Post by rogerthat on Apr 3, 2018 11:43:55 GMT
This property was valued at £890K on 15th April 2017 yet Zoopla states it was sold in June 2017 for £672K - considerably less! The LTV doesn't look great in these circumstances. "An additional 38 acres of land (approx.) is available via separate negotiation." Presumably that's worth something ?
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adrian77
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Post by adrian77 on Apr 3, 2018 14:38:20 GMT
I have had a quick look at the history of this one - again we seem to have smoke and mirrors with several loans by the same person on vastly overvalued poperties. I know this area and totally dispute the valuations - not least the farmhouse on which FS has a second charge and the immortal lines.
you what - I think the "mortgage company" they used for the "valuation" refered to is in fact an American bank with an interesting reputation
This one has got the Wimbledon fiasco signs tattoed all over it - unless this borrower has substantial other income (which seems very unlikely) then as he can't refinance as planned I just don't see how on earth he is going to honour his debts. Or to quote rogerthat
I just don't see any evidence whatsoever of FS business acumen in the property market and only invest in very few property loans now. . I give up...
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Liz
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Post by Liz on Apr 3, 2018 14:57:47 GMT
This property was valued at £890K on 15th April 2017 yet Zoopla states it was sold in June 2017 for £672K - considerably less! The LTV doesn't look great in these circumstances. "An additional 38 acres of land (approx.) is available via separate negotiation." Presumably that's worth something ? £167,000 according to the valuation company. A figure they didn't justify with companies, so that could be a pie in the sky value(would never happen in p2p!)
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rogerthat
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Post by rogerthat on Apr 3, 2018 15:25:13 GMT
"An additional 38 acres of land (approx.) is available via separate negotiation." Presumably that's worth something ? £167,000 according to the valuation company. A figure they didn't justify with companies, so that could be a pie in the sky value(would never happen in p2p!) on the VR it stated 'in the region of £170K'...but ive included a link below where you might get an idea yourself:- www.rics.org/Global/RICS_RAU_Farmland_Market_Directory_of_Land_Prices_H2_2017.pdfA complete stab in the dark based on nothing but the tea leaves but maybe Bare Land is cheapest..Grassland has more value and Arable land the most
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Liz
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Post by Liz on Apr 3, 2018 15:50:08 GMT
Let's say £550k for a quick sale and £80K for the land, after costs is less than £600k, leaving the 2nd charge loan holders with a problem. Maybe nothing.
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james21
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Post by james21 on Apr 3, 2018 15:57:33 GMT
Let's say £550k for a quick sale and £80K for the land, after costs is less than £600k, leaving the 2nd charge loan holders with a problem. Maybe nothing. According to the valuation report (2017) on the main house its tenanted and the end of terrace is also let out, nothing will be quick about this one
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Liz
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Post by Liz on Apr 3, 2018 16:09:57 GMT
Let's say £550k for a quick sale and £80K for the land, after costs is less than £600k, leaving the 2nd charge loan holders with a problem. Maybe nothing. According to the valuation report (2017) on the main house its tenanted and the end of terrace is also let out, nothing will be quick about this one No, the process won't be quick. Quick sale was referring to the marketing period and my point was about a possible loss and not about timescales, which on FS property are rarely quick. Often very prolonged!
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sarahcount
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Post by sarahcount on Apr 3, 2018 16:18:43 GMT
I'm in the first charge loans for each property. The end of terrace has been one of my favourite loans and even if the valuation is high there should be a full recovery in a fire sale.
Lenders in the second charge loans may start to get anxious if the loans drag on for too long.
Once again there's a lesson to be learned over loan selection and reading the smallprint about order of loan priority.
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Liz
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Post by Liz on Apr 3, 2018 16:58:19 GMT
Reading the VR the tennant was the applicant and partner and 5 children. Hence the tennant bought the property and is no longer tenanted. Not that it will be any easier to sell not being tenanted, maybe harder.
The forced sale value was £800K, which is propbably £200k too much. Which should pretty much cover the capital for the 1st charge holder. The land enough for 1st charge holders' interest and top-up capital.
Not looking pretty for 2nd charge holder even if they can get £700k for the property.
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spyrogyra
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Post by spyrogyra on Apr 3, 2018 17:38:58 GMT
1764214549 is a loan to the same borrower. Overdue 4 months. The latest update from 18/3 claims the borrower is "given a final ultimatum of March 30".
Helloooo, is there anybody out there? Nooo, just some grumpy lenders.
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michaelc
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Post by michaelc on Apr 3, 2018 18:06:26 GMT
In the circumstances, I'm fairly relaxed about this despite being involved at least knee high. I've always taken the view that loans may overrun and may overrun massively. So long as eventually I get at least my capital and on most loans my interest, I'm broadly comfortable and I think this is the case here (at least for the 1st priority loan).
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sapphire
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Post by sapphire on Apr 4, 2018 8:40:47 GMT
I realise such things could drag on but if the charge does need to be enforced and the property sold, based on past history, any idea what is the quickest period within which FS has managed to dispose of a residential property and repay the lenders?
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rogerthat
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Post by rogerthat on Apr 4, 2018 10:26:21 GMT
I realise such things could drag on but if the charge does need to be enforced and the property sold, based on past history, any idea what is the quickest period within which FS has managed to dispose of a residential property and repay the lenders? Might come in handy
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ashtondav
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Post by ashtondav on Apr 4, 2018 10:30:29 GMT
I realise such things could drag on but if the charge does need to be enforced and the property sold, based on past history, any idea what is the quickest period within which FS has managed to dispose of a residential property and repay the lenders? FS don’t do anything quick. I would have a stiff drink and forget about it. Wake up in a couple of years time and repeat.
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SteveT
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Post by SteveT on Apr 4, 2018 10:47:04 GMT
I realise such things could drag on but if the charge does need to be enforced and the property sold, based on past history, any idea what is the quickest period within which FS has managed to dispose of a residential property and repay the lenders? Take a look at the FS loan book ("All active and past loans") and sort them by the "Defaulted" column. Loans marked "Recovered" concluded with a full recovery, those marked "Defaulted" concluded with some level of loss (capital and/or interest). The only purely residential property I can see that's reached a conclusion is the Telford one, which eventually repaid in full after 532 days (so about 1 year after the original 6 months term). Other examples are still dragging on and on... Based on other platforms, anything closed out within a year from default is rather good. Depending how complex the case / awkward the borrower, it can take much, much longer.
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