r1200gs
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Post by r1200gs on Aug 24, 2018 9:56:12 GMT
I've just had a contractor ask for more money, it took him about 30 seconds to send me a picture of the receipt for the materials he's already paid for.
Everything that could be said about this loan has been said, now let's just see what the loss is and go on from there.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Aug 24, 2018 10:34:52 GMT
maybe the lender could do the valuation at the borrower's expense - I don't think pawn shops accept valuations from the borrower? I don't need yet another lecture about how the building industry work thanks but there again all my developments are now funded from my cash reserves - seen too many "house of cards" collapse - not least the string of bust developers from the excellent mrclondon DD...and the bust FS developments of which I seem to recall Wimbledon, Knaresborough etc not that there won't be many more. FS is clearly the port of last resort for many developers (not all I accept) who have been turned down by the banks and may possibly explain the ever growing list of problematic property loans. I was once a member of Rotary so I know exactly how some fine upstanding virtuous members of the public actually operate... I think it is fair to say the Whitehaven loan was a tincy-wincy bit inaccurate. but that is what happens, the lender instructs the valuation at the borrowers expense, but i guess you would know that being a developer .. good for you having the cash reserves to fund your own stuff, unfortunately not quite as easy in london on small margins with heavy buy ins... You have hit the nail on the head “LONDON MARKET “ Here just outside Glasgow you can buy property 2 bedroom flats requiring upgrade for £8000-£20000 so you can buy 15-20 for price of small London flat . Once refurbished can be rented for £250-£450 aand easily get BTL mortage with 10-30 increased value should you decide to flip. I am sure there are similar areas throughout England I think London markets are difficult certainly for developers that are also landlords. London property for £200000 + refurb investment one property prob £1000 so let’s say £1500 pm Same sum spent on 15-20 properties + refurb rental £3750-£6750 PM for 15 properties obviously refurbishment costs would be higher say total of £400000 for 15 and in London say £300000 . Massive ROI on flats even more attractive if mortgaged or just flip. I think London is Getting less and less attractive I hope not too soon and it doesn’t happen till I get all my money out of London properties on p2p :-)
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aj
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Post by aj on Aug 24, 2018 14:20:42 GMT
I think FS have made it pretty clear that they have no faith in the so called 'buyer's communications. FS are really just wasting time chasing them further, if they intend to pay up, the ball is entirely in their court.
I am glad to hear the auction is attracting interest as this is our only realistic exit for the loan. Any FS time spent on this loan would be better spent promoting the upcoming auction.
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arby
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Post by arby on Aug 24, 2018 16:38:24 GMT
I think FS have made it pretty clear that they have no faith in the so called 'buyer's communications. FS are really just wasting time chasing them further, if they intend to pay up, the ball is entirely in their court. I am glad to hear the auction is attracting interest as this is our only realistic exit for the loan. Any FS time spent on this loan would be better spent promoting the upcoming auction. Yes, I would be glad too, if I could believe a single word by FS. As I can't trust them anymore, then the real message I get is: 'we have no idea how the auction will turn out to be, but let's write a positive message anyway as it migt raise the moral of the lenders....' At least they stated a date so we'll know for sure when we should have received an update, but haven't 
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blender
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Post by blender on Aug 24, 2018 16:50:27 GMT
Latest update: We have spoken today with the new lender. There are two remaining obstacles to completion: one is the formal removal of the restriction by the neighbouring developer (they have confirmed the demolition is complete but the document required for the land registry has not been signed off); the second is signing of the security documents by one of the purchaser's directors who is currently overseas (they are scheduled to meet with their lawyers on Tuesday next week to sign). Completion is expected shortly thereafter.
In the meantime the auction listing is attracting considerable interest. The auction is scheduled for September 6 which the purchasers are well aware of.
as usual FS continues with their lies. If one of the purchasers is overseas and his signature was required, how could they write earlier this week: 'The new funders have called today to confirm that they will be in a position to complete on Wednesday this week, worst case Thursday'...
Something continues not to be right I start to have some sympathy with FS here. They are damned if they do not chase borrowers and give updates, and they are damned if they do. If these are lies then they are clearly the borrower's lies and not FS. They seem to be doing the right thing here and just keeping lenders up to date. Of course lenders would not wish to be in this position in the first place.
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arby
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Post by arby on Aug 24, 2018 16:58:31 GMT
Latest update: We have spoken today with the new lender. There are two remaining obstacles to completion: one is the formal removal of the restriction by the neighbouring developer (they have confirmed the demolition is complete but the document required for the land registry has not been signed off); the second is signing of the security documents by one of the purchaser's directors who is currently overseas (they are scheduled to meet with their lawyers on Tuesday next week to sign). Completion is expected shortly thereafter.
In the meantime the auction listing is attracting considerable interest. The auction is scheduled for September 6 which the purchasers are well aware of.
as usual FS continues with their lies. If one of the purchasers is overseas and his signature was required, how could they write earlier this week: 'The new funders have called today to confirm that they will be in a position to complete on Wednesday this week, worst case Thursday'...
Something continues not to be right I start to have some sympathy with FS here. They are damned if they do not chase borrowers and give updates, and they are damned if they do. If these are lies then they are clearly the borrower's lies and not FS. They seem to be doing the right thing here and just keeping lenders up to date. Of course lenders would not wish to be in this position in the first place. It feels like FS are increasing the frequency of updates. Is that just me? I'd rather they chase more, even if it's unsuccessful, than just sit idly by.
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adrian77
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Post by adrian77 on Aug 24, 2018 16:59:48 GMT
do FS think we are stupid or what - the above is total garbage - all he had to do was authorise his soclitor with power of attorney to do this. Supposing this director had a stroke would his business cease to run - would it Hades .Besides I am not convinced the LR will be updated before Tuesday - the one day he is away is the one day this is due to complete - yeah right. What's next did not return as planned due to food poisoning in Malabu....
FS are supposed to be managing our interests - not for the first time they are getting messed around by the "purchasers" - the tail is wagging the dog here. I don't think they did enough DD in the first place and should never have put this one to market - it is a speculative £2m loan to a person that seems to have no money and a problematic track record - it is not £10K against a Rolex watch held in secure storage! Also I just don't see why the flat developers would be in a hurry to lift the restriction as they have got what they want.
We were told "all system go" in May , Monday 20th August, Wednesday, Thursday at worst, end of this week and now Tuesday 28th...September 6th is not very far away so at least FS have got this one to auction.
we were also told
well if the restriction was lifted then how on earth could the completion date have been set - weasel words yet again - maybe stating "aiming" for August 20th would have been a bit more honest.
I don't believe these purchasers want the damn plot - just the restriction lifted
To me this is the final straw I am running down my porfolio asap and then looking for somewhere else to put my money and not going back to FS whatever happens... Sooner or later the truth about this one will come out.
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Post by Proptechfish on Aug 24, 2018 18:37:57 GMT
Shame you can't say the same for the Whitehaven timber frame. However as you are local could you comment on the valuation of this site - my very crude and superficial research indicated nothing like the FS valuation - looks a lovely town - I will have to visit. Thanks a lot Off to work now - wonder if this one will have completed when I return... I only recently came across this investment so i'm not invested. It's a shame i didn't notice earlier as i might have been able to comment. Value wise, i'm not qualified to confirm specific values but what stands out for me as being a 'stinker' about this development is the type of accommodation. 'Studio flats' tend to aim for either students or 'a young and trendy' demographic. Lichfield does not have a university (expect a very small campus faculty of Staffordshire university ie. negligible student accommodation demand). Lichfield is also a lovely place to live for an older generation not so much for a younger generation. For example it took the council 15 years to part renovate the play area facilities in the local park, in the same time it fully funded not one but two bowling greens for local clubs with an average membership age in the 60's. The council has also turned down a KFC application at least 5 times in the past, there is in fact only a McDonald's in the town centre in terms of fast food (Dominos on the outskirts).There are a few pubs about the high-street (some of them quite nice) but i don't ever recall there being a proper night club and all drinking establishments stop serving by 11pm (maybe slightly later on a special occasion). Point being it's not particularly a draw to the 'young an trendy'. Some back ground to Lichfield it's self technically it's a city because of it's Cathedral but in name only, with a mere 32'000 population (intercity) it's hardly city size. It's also historically rich as being the sight of a significant battle in the English civil war (involving the Cathedral), also the birthplace of Samuel Johnson (wrote one of the first english dictionary's) and Erasmus Darwin amongst others. Given it's history a lot of the city centre is listed and redevelopment is notoriously difficult to get through. Local properties do tend to sell for a premium given it's desirability however I would argue rental yields are probably not too attractive especially for flats/apartments. Directly behind the person taking the main photo of the front of the building ( in the investment pack) are a row of traditional independent shops, many of which have 2 bed flats above them. I have personally had a couple of friends renting these flats and i recall (going back 5 or 6 years) rent in the £500-600 p/m mark for significantly better sq ft than is on offer here. Finally the site it's self would be a nightmare to develop from an access point of view, especially for a virtual rebuild. The front of building is impossible to access for HGV's given the one way, down hill, hair-pin road the site is off. The rear access is not much better with a tight right and left hand turn with narrow paths popular as a cut through to the lower high street (Google Maps it). A nightmare yes but not impossible, just consider though the sizeable additional cost a difficult access can add to development, and maybe even compensation for negatively effected business. Honestly my heart sank when i saw this, I personally wouldn't have touched it with a barge pole.
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Post by dan1 on Aug 24, 2018 18:42:01 GMT
So, now we know adrian77, it's not a "lemon", it's a "sausage"  |
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arby
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Post by arby on Aug 24, 2018 19:23:30 GMT
New update: "To clarify: our most recent posts are based on our conversations and email correspondence with the new lender which is a bank regulated by the Prudential Regulation Authority. We are not basing our updates on conversations and correspondence with the borrower." It seems they're onto us! |
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adrian77
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Post by adrian77 on Aug 24, 2018 21:17:03 GMT
Thanks for the full and interesting answer - more development information than from FS - looks like the retirement flats developer have got it right! Believe me restricted access can be a complete nightmare and very expensive to deal with.
Sounds a great place to live - it's a lemon it's a sausage - it's a lemon flavoured sausage!
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adrian77
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Post by adrian77 on Aug 25, 2018 10:55:24 GMT
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arby
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Post by arby on Aug 27, 2018 18:38:10 GMT
Not sure which part is fun 
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adrian77
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Post by adrian77 on Aug 28, 2018 15:24:50 GMT
Not looking good for completion today is it ?
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Post by brightspark on Aug 28, 2018 18:41:59 GMT
Was it this year?
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