kielbasa
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Post by kielbasa on Dec 4, 2019 18:07:28 GMT
No news is bad news, I assume.
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adrian77
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Post by adrian77 on Dec 4, 2019 18:22:58 GMT
Be interested to know where we are with this one (I am in it) We were told there was a buyer so no idea if that has progressed - I just hate to think how much this is costing us in maintenance and security let alone the mega expected capital loss.
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syalith
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Post by syalith on Jan 17, 2020 0:52:17 GMT
The property has reappeared on Rightmove this month.
This is confirmation that the buyer has pulled out, as they had paid a non-refundable fee of £25,000 for exclusivity.
I'm beginning to sense a pattern here, with buyers initially eager to purchase the property only to hastily retreat upon closer examination. It appears something is seriously wrong with the property. Upon taking another look through the valuations provided on the Fundingsecure website, it struck me that the valuers are very keen to point out that no structural survey was undertaken in the process of making their valuations. We also know that when the receiver commissioned their own valuation, the cost to refurbish the property came in "significantly higher" than expected, perhaps due to a previously unknown structural issue coming to light during the survey? The property is listed at around £650k on Rightmove, a price which would be consistent with such huge refurbishment costs, probably in the millions.
We're now left in a truly dire situation, our property remains unsold, with no buyers lined up and developers seemingly afraid to touch it even at a knockdown price. In addition, we have the mounting costs of both the receiver and administrator to come out of any proceeds.
In my view, based on the evidence I see, the property is likely in need of £2-3million spending on it to bring the apartments to a habitable state, at which point it will be worth £3-£4million. It's entirely possible that the property needs more spending on it than it would be worth afterwards, making it almost worthless in its current state. We can see from this borrowers other loans that his playbook was to borrow against near worthless properties using inflated valuations with one just recently selling for below 10% of what it was valued at. We could be looking at this selling for below £500k which will mean a huge capital loss for those in the first ranking loan. For anyone not in the first ranking loan I don't see any possibility of getting anything at all back.
These are just my thoughts and observations, I'm no expert, I could be wrong and with £50k at stake I sure hope I am.
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rogerthat
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Post by rogerthat on Jan 17, 2020 1:22:32 GMT
Ive often wondered whether the pattern you sense has any connection to the more significant loans on the platform whereby the same borrower was involved but not disclosed and ex directors of an ex company currently in Administration.
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Steerpike
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Post by Steerpike on Jan 17, 2020 9:39:30 GMT
The imaginative and inventive pet surveyor on this loan was also responsible for the entertaining reports produced for The D*ll, F*rmby et al. It is almost as if the valuations were calculated to fit the required loan amount and have little or no relation to the value of the asset. 2938283517 should see a return but probably the other loans, unfortunately for those of us that hold them, are worthless.
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adrian77
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Post by adrian77 on Jan 17, 2020 10:28:39 GMT
I tend to agree with this - I note it was sold off cheaply by the council as discussed previously - well they might just have done this for a reason! What worries me is that there is concrete cancer, asbestos or whatever. In fact this could be the mother of all Horlicks where the only option is demolition - I don't like Trump but he has a fantastic team of building engineers etc who work for him and not even he would have engaged on such a venture without a full structural survey before spending any money on this one.
I find this £25K lost deposit a bit curious and never come across this in my dealings - I find it very hard to believe the interested party never had a let-out clause. if he has written off £25K for nothing either he is mega wealthy or knows he is throwing good money after bad!
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adrian77
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Post by adrian77 on Feb 3, 2020 14:01:24 GMT
Anybody know where we are with this one (I am in it) Can't find any definitive proof it is still for sale - maybe we could ask the administrators where we are with it?
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syalith
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Post by syalith on Feb 3, 2020 17:41:23 GMT
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adrian77
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Post by adrian77 on Feb 3, 2020 18:08:53 GMT
Thanks - but if you search by Realla we get
The office listing at ******* House, ***** *****, Wallasey, Merseyside ***** *** is no longer available
so maybe their listing is out of date - it strikes me the sales effort here is very low key at best - if you type the house name + for sale into google you don't get the estate agents details on the first page....
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adrian77
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Post by adrian77 on Feb 12, 2020 18:13:49 GMT
part of latest update I said there was a problem with this one! Bleeding obvious I know but I can't recall FS mentioning this - I also said I bet the buyer would look to renegotiate - developers - honestly!
I hate to think what the problem is here - I am no structural engineer but I guess in a block such as this is forms part of the structure - and just how much is this going to cost to renovate - in fact I wonder if mega remedial work needs doing and the upper flats at least will be impacted. The scaffolding alone will cost a fortune and maybe the roof needs removing and re-doing along with structural amendment - I like a challenge but I would not go anywhere near such a technical challenge such as this. Complete and utter horlicks by amateur idiots! Why the hell did FS advance OUR MONEY when they knew there was a problem with the roof!
I find the rest of the post confusing and in poor English - not sure how long 3rd parties have to make an offer?
As I pointed out the valuer clearly stated he had not done a structural report - so that is Goodnight Vienna to suing him as he will rightly state he should have been informed about the roof... also as I said there was a demolition request on this building so maybe that was for a perfectly good reason!
I need a drink !
Gordon Bennett...
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Post by overthehill on Feb 12, 2020 18:36:45 GMT
I sent the administrators an email asking them to provide an update and they did it in minutes, I don't see any reason to withhold this information from investors.
I can only see my loans now so I don't know how many are still to have any kind of post-FS update. Send an email requesting an update of some description large or small for any loans without an update since the administrators took over.
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adrian77
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Post by adrian77 on Feb 12, 2020 21:11:08 GMT
Can somebody remind me how much this block was purchased for - having read the latest update I am just depressed - I am in the second tranche and wondering if I am going to take a 100% loss - not only are we going to get a very poor sales result we are going to get hit with maintenance, security, legal, administration costs etc...
I just hope it is going to be economically viable to repair the roof!
I thank you
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aj
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Post by aj on Feb 13, 2020 8:14:33 GMT
Unfortunately I reckon the second charge may now be in for a 100% loss.
While the original offer fully covered the first charge, this has now fallen through and been replaced by a presumably lower offer. In the meantime, the first charge interest and administrators fees are still increasing and seem to be set to continue for the foreseeable future.
It seems strange the administrators are refusing the exclusivity fee for this new offer. Perhaps it is significantly below the first?
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adrian77
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Post by adrian77 on Feb 13, 2020 9:29:00 GMT
sadly I agree - as for the other lower charges definitely Goodnight Vienna- I think we could have a £2m loss here - so definitely in the Whitehaven league for gross incompetence
If I were a betting man I would say it was!
Feeling even more depressed now....
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kielbasa
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Post by kielbasa on Feb 13, 2020 15:09:26 GMT
The update of 12/2/2020 states:
"Exchange did not take place as expected mainly due to the fact that we experienced significant issues with the flat roof that failed in November 2016."
The loan started in November 2017, so this should have been disclosed. The loan I am in started (renewed) in November 2017. I would never have put money into this loan had I have been properly informed.
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