adrian77
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Post by adrian77 on Jul 26, 2018 9:34:58 GMT
As I said 38 years in this game and I have never come across this...I would love to see the purchase and demolition contract! Surely the purchasers are going to want a hefty premium for doing the work which will increase the value of the site or to put another way reduce the selling price! The demolition company may or may not be on a fixed price contract which will not be cheap and they may be a clause in the purchase agreement that any overun comes off the selling price. Looking at the photos this building has to be taken down carefully so it does not damage the neighbours. I would guess this building is very well made and taking it down won't be a 5 minute job.
FS told us 2 weeks from last Monday and the Birmingham Post states a conservative 4 - 6 weeks from now. Who is running this project FS or the Birmingham post who unlike
FS can spell "metre" correctly!
Let us hope the neighbours aren't damaged by the demilition work - seen that many times in my career....
Long way off the below aren't we :
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empirica
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Post by empirica on Jul 26, 2018 10:29:47 GMT
... We were told the delay was to be about 2 weeks and now the latest estimate is a further conservative 4-6 weeks (we all know about builders' estimates!) And now we are looking at September or later ! Wonder what the next excuse will be. Gordon Bennett! From FS: I'm reading that as the two weeks required to get the site down to 1.5m all that is required to satisfy the requirements of the Borrower's purchaser. That it takes another 4 weeks (6 weeks total) to completely clear the site may be irrelevant and it might be the purchase can proceed after the initial 1.5m / 2wk activity. (Not an FS customer so don't feel entitled to ask, but certainly would if I were an actual investor in this.)
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adrian77
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Post by adrian77 on Jul 26, 2018 10:39:17 GMT
fair point but I am very worried not only about the actual cost but more what the purchaser is going to want in return unless he is a charity!
Considering that FS were ,at best, somewhat lacking, when it came to Whitehaven I am worried somebody here is being very astute and I am not sure who it is! If FS can't even validate a building site has progressed and a timber frame ordered then what hope have they got in prejudging this one which is the most legally problematic and complicated development I think we have had on this site.
Wonder where we will be in 6 weeks - if I were a betting man I would wager we will get a post similar to "demolition has proceeded well but due to unforeseen issues it is taking longer then expected...we will soon provide a 'meaningul update'"...
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adrian77
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Post by adrian77 on Jul 26, 2018 14:14:50 GMT
interesting and highly plausible especially if the new developer doing the retirement flats will benefit - this seems to be a very big company and probably anything but stupid...as we don't know who the purchaser is could they possibly be the same company as doing the retirement flats....
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micky
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Post by micky on Jul 26, 2018 14:26:40 GMT
In this case, doesn't the demolition of the site make it more attractive to other developers?
The development next door is great and it is plausible that the same developer could be behind the purchase of our site. Certainly, its reduction in height/ final demolition will put the apartments next door in a more attractive location and make them easier to market.
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adrian77
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Post by adrian77 on Jul 26, 2018 16:56:16 GMT
That makes sense to me but FS are more than welcome to deny it....
OK so the retirement flats developer gets a bill but he also enhances his property - not convinced he would want another development next door spoiling his view unless the price was right which in my book would be well under the loan offered to the cinema owner....
Pleased for a second opinion but I can't think why anybody else other that the retirement developer would do this.
I am fed-up of FS giving us, at best, incomplete and confusing information and treating us all as complete idiots - this one has still not got a completion date which says it all to me.
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micky
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Post by micky on Jul 26, 2018 22:35:40 GMT
The grumbler -'Hence it is critical for FS to have a very substantial non-refundable deposit before moving a stone'. Many of us would agree with you. Why don't FS?
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locutus
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Post by locutus on Jul 27, 2018 21:24:45 GMT
An excellent update from FS.
Observing evidence of multiple borrower actions first hand: tick
Communicating a hard deadline to borrower: tick
Putting in place a Plan B: tick
Putting in place a Plan C: tick
More of this please.
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micky
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Post by micky on Jul 27, 2018 21:44:45 GMT
Well, FS has made a move to follow up on information provided this time. A much more comprehensive and thought out sales strategy than for previous problem loans. Hopefully, we will benefit from this. The update also states-'Having paid their deposit monies to the solicitors at the time of 'exchange, and funded the pre-commencement conditions, they are now funding the demolition of the building in order to satisfy their lender’s requirements. Grumbler-this should make pleasing reading  From the images under Files-Note the change in demolition company- from PBM on the previous notices to Beaver actually starting the work. |
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adrian77
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Post by adrian77 on Jul 28, 2018 0:42:07 GMT
Agree with the latter part although not so sure about the former part....
I have been thinking about this one - maybe I should get out more but this is very interesting to me
I think the key question is this
Has this new purchaser got a let-out clause in the exchange contract that allows him not to complete if he can't raise the funds?
If I were a betting man I would say "yes" especially as FS were not involved in the contract!
Maybe I am mis-understanding the situation but it looks to me as if the original applicant is playing Russian Roulette and hoped to quickly flip the property - he has failed and has only found a purchaser who hasn't got the readies to complete and is also playing Russian Roulette and is gambling that doing the demolition is going to bring about a quick sale! Even if the purchaser gets funding I wonder if it will be enough to cover the original FS loan plus interest (and possibly the demolition work). Personally I this the orginal valuation is like many other FS valuations - a tincy-wincy bit on the optimistic side...
Personally I don't think the original applicant should have been advanced 20 quid let alone £2m and that FS should have immediately repossessed the asset once it defaulted.
If funds aren't forthcoming I don't think there will be enough time for the September auction and the last thing we want (I have a nibble in this one) is a delayed auction with a Whitehaven type result!
My predition for a major haircut and a 100% loss on lower ranking loans is still looking reasonable to me - not that I hope I am proven wrong...
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micky
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Post by micky on Jul 29, 2018 15:19:48 GMT
Several photos on Frank and recent FS update showing the start of the demolition process.
Another update 8.30pm - image showing progress made with the demolition on Friday 27/7.
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aj
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Post by aj on Jul 30, 2018 7:07:27 GMT
An excellent update from FS. Observing evidence of multiple borrower actions first hand: tick Communicating a hard deadline to borrower: tick Putting in place a Plan B: tick Putting in place a Plan C: tick More of this please. Agreed, a good update. Deadlines to borrowers as just empty threats unless there is a consequence to the deadline being missed. For those hoping for a swift resolution: The 6th of September is just a listing date for auction. I would then expect to see the fabled 90 day marketing period (Auction date arond December the 5th???) after which a 'professional valuer' expects a sale price of £2,635,000. At that point the total loans+interest should be somewhere around the £2.3M mark. (Not including FS/Auctioneers fees)
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locutus
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Post by locutus on Jul 30, 2018 8:04:44 GMT
Agreed, a good update. Deadlines to borrowers as just empty threats unless there is a consequence to the deadline being missed. For those hoping for a swift resolution: The 6th of September is just a listing date for auction. I would then expect to see the fabled 90 day marketing period (Auction date arond December the 5th???) after which a 'professional valuer' expects a sale price of £2,635,000. At that point the total loans+interest should be somewhere around the £2.3M mark. (Not including FS/Auctioneers fees) I presume it is this auction in which case completion will take place within 30 days of 6th Sept if the property sells. www.sdlauctions.co.uk/auction/250/aston-villa-fc/
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paulb
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Post by paulb on Jul 30, 2018 8:24:10 GMT
Ah, that's an auction AT Aston Villa, not OF Aston Villa..... Even so, getting our money back does rely on the property selling for a decent amount of the valuation price. I've not been using FS for long (not long enough to be in the Mega Failures listed), but I've seen enough to not be too optimistic.
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adrian77
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Post by adrian77 on Jul 30, 2018 12:29:12 GMT
if this one defaults (and I am not saying it will although personally I think it is likely)
then I estimate auctioneers fees at 2.5% which is £50K on £2m and I think FS charge 5% which is a further £100K so that is £150K before receivership fees which is really going to eat into the first charge.
I don't deal at this level of the market (like to sleep at night) but I really can't see this one going for the valuation so is there any local developer or similar who could comment on the valuation.
I have read about the castle that went for about 30% of valuation on a different platform - what a mega horlicks! I really hope this one is not in the same league as I have a nibble in it but I am really not very confident - in fact I can't see in making £1m at auction but what do I know.
I thank you.
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