rogerthat
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Post by rogerthat on Jan 15, 2020 21:27:46 GMT
Is it not legal requirement that FS had to have "Professional Indemnity Insurance" - normally in the very high millions. Surely we can sue FS also where they have been blatantly irresponsible like with this loan? Erm...im no legal beagle but as I understand it..FS no longer exist so... There was chat somewhere on here recently on where the line was drawn with regard to valuations plucked out of black holes and whether further investigations for reparation might be considered from RCIS indemnity insurance or some such (did I recall 50% ? )...As this particular valuation doesn't even make 10% of that, I think a few questions could at least be asked because if this example turns out to be the tip of an iceberg, then there is an awful amount of even worse news to come. Was any thought given by CG&Co to see whether HNW's or even lesser mortals would have had an interest in preventing this going for a derisory pittance ? Out of my £500 capital and accrued interest of £149.23 I suppose I'll be lucky to see £20 quid..very lucky in fact
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mikes1531
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Post by mikes1531 on Jan 15, 2020 23:26:02 GMT
Does anyone understand the PP situation for this property? I'm particularly confused by the following sentence from a FS update... From the word "additional", it looked to me as if the borrower had obtained PP and was trying to have if modified.
Did the borrower never have any PP granted?
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adrian77
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Post by adrian77 on Jan 16, 2020 9:49:19 GMT
agree but I feel FS were somewhat optimistic with the description and its relation to planning - I think we can assume there is minimal planning allied with maximum profit for the developer who has shelled out say £200K for purchase and initial planning and has walked away with £700K - I would say "I don't believe" but sadly owing to the crass incompetence (at best) of FS I do...
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Mucho P2P
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Post by Mucho P2P on Jan 16, 2020 10:11:19 GMT
Is it not legal requirement that FS had to have "Professional Indemnity Insurance" - normally in the very high millions. Surely we can sue FS also where they have been blatantly irresponsible like with this loan? There is no legal requirement for FS to have any insurance. From what we have heard, they were lacking several forms of insurances, including on many of the assets. We have heard that the administrators have taken out insurance on most of the assets [where possible] post their appointment.
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rogerthat
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Post by rogerthat on Jan 16, 2020 10:52:49 GMT
Id still like to know if the question has been asked of CG&Co whether the site is legally a done deal..money and/or contracts exchanged. If not, all's fair in love and war..I'd even contribute myself if a realistic (believable) valuation indicated it had more value than £150K. Still, at least we have the consolation of knowing that an ex director partly or wholly responsible for this mess was/is being gainfully employed and indirectly being paid by the very investors he conned..that gives me a warm glow inside
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Post by diamon89 on Jan 16, 2020 11:30:46 GMT
Does anyone understand the PP situation for this property? I'm particularly confused by the following sentence from a FS update... From the word "additional", it looked to me as if the borrower had obtained PP and was trying to have if modified.
Did the borrower never have any PP granted?
I'm not a planning expert, but the property is described by FS as merely having "a favourable Pre-Planning Application". In my part of the country 'pre-planning' just means you have a meeting with the planners and discuss your plan and they give you a verbal indication about whether it is likely to be approved or not. The later updates never actually say "planning was approved", so I assume it wasn't and the references to "additional planning approval" and so on are references to the borrower still trying to get planning. The valuation is based on the assumption that planning permission would be granted: "Our valuation is based on the assumption that planning will be granted for the proposed development of 120 units within a 22 storey block and thus reflected in the valuation which can be further attributed to valuation base upon “plot value” on a comparable basis or by the residual method of valuation. The value within this report is not reflective of land value without planning." Presumably there is some reason why planning wasn't granted (if it indeed wasn't), and that same reason could well be why the value is 10x lower than expected. Contamination? Flood risk? Who knows.
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crazi
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Post by crazi on Jan 16, 2020 19:00:10 GMT
So how can we find out if FS had PI Insurance?
If they did - it doesnt matter if they are bust now as they had insurance when this deal was done. When they listed the loan they listed it's LTV value at 49.97% which I believe is/was VERY misleading. They lent £900k for a plot worth £120k? Mismanagement at it's worst.
They only get away with it if we do nothing!
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Godanubis
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Post by Godanubis on Jan 16, 2020 19:00:26 GMT
Better put £140000 here you get 4 2 bedroom flats and a House with >£1200 PM income link
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adrian77
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Post by adrian77 on Jan 16, 2020 19:27:39 GMT
I studied in Scotland - loved the people loved the country which seemed a tad more desirable than this past of Cumbernauld - I am surprised this was not funded by FS !
I note these are sold without being seen - well that's a new one on me!
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iRobot
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Post by iRobot on Jan 16, 2020 20:02:17 GMT
I studied in Scotland - loved the people loved the country which seemed a tad more desirable than this past of Cumbernauld - I am surprised this was not funded by FS ! I note these are sold without being seen - well that's a new one on me! Read it and then once again, but your gonna have to explain that to me. What has been sold without being seen?
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iRobot
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Post by iRobot on Jan 16, 2020 20:03:47 GMT
Better put £140000 here you get 4 2 bedroom flats and a House with >£1200 PM income linkAnd how much per month in outgoings for repairs and renewals?
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adrian77
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Post by adrian77 on Jan 16, 2020 20:52:49 GMT
from agent's webs site wonder why they can't get access to one of the properties and how reliable the rental income is...
As I said surprised FS never funded this one - personally I think I will give it a miss!
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Godanubis
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Post by Godanubis on Jan 17, 2020 12:03:41 GMT
from agent's webs site wonder why they can't get access to one of the properties and how reliable the rental income is... As I said surprised FS never funded this one - personally I think I will give it a miss! Currently tennented so no access. Council pay up to £425 a month for these flats, The generally sell £20000-£30000 The 1/2 bedroom flats £8500-£20000
All are great return not a great area but rents get paid
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adrian77
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Post by adrian77 on Jan 17, 2020 13:35:52 GMT
2 of my houses are tenanted - clause is to allow access - serious point when I had council tenants they slapped in one bloke who had family issues in that he knifed his 3 of his immediate family to death - good to know our taxes go on such people! Doubtless these tenants are all wonderful people but I am not risking it and getting out of rental properties asap! Not sure in Scotland but in the UK I understand you can't take unemployed people to a small claims court.
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Godanubis
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Post by Godanubis on Jan 17, 2020 13:57:20 GMT
2 of my houses are tenanted - clause is to allow access - serious point when I had council tenants they slapped in one bloke who had family issues in that he knifed his 3 of his immediate family to death - good to know our taxes go on such people! Doubtless these tenants are all wonderful people but I am not risking it and getting out of rental properties asap! Not sure in Scotland but in the UK I understand you can't take unemployed people to a small claims court. No cost evictions here you go to tribunal takes less time than elswhere. We don't have sheriffs like england,
I ment DSS council pays you direct. Not huge risk if you are only paying £8000-£15000 Right of access is for inspection not multiple viewers. All properties for sale must have Home Report in Scotland it highlights any major problems and gives indicative value/rent
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