r1200gs
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Post by r1200gs on May 29, 2018 17:10:09 GMT
Now updated with "to be renewed shortly".
Anyone got any thoughts on this with apartments now not exactly flying off the shelves(as far as I can see) for 85K and auction sales coming up at a guide of 75K?
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adrian77
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Post by adrian77 on May 29, 2018 20:03:56 GMT
I note an agent is offering the first 20 flats (out of 42?) at a claimed price of below market value of £85K so I guess that is not a good sign...
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adrian77
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Post by adrian77 on May 30, 2018 11:01:49 GMT
done a bit more research; the same agents are offering a 3 bed flat for £60K with no service charge for 10 years. if my maths are correct then FS are into this loan for £2.6m. If we take an average price of £75K than will realise £3.15m gross so after fees etc I am not even convinced this one will repay all the interest owing ...just my opinion based on very quick and superficial research
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aj
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Post by aj on Jul 27, 2018 11:11:42 GMT
Total loans on this development: £2,585,000 6 Months Interest @13% on those loans: £168,025 (Most are now over 6 months, some under so this is quite a rough figure) Extra FS fees, etc to borrower:  I put the total owed well over £2.8M, dividing that by 42 apartments* gives a break even sale price of somewhere over 65.5K. Apparently the first 2 have sold and the borrower will start to pay the loan down soon. It would be interesting to know the sale price of the first two, they are listed at a 'reduced/auction guide' price on rightmove of 75-85K. My gut instinct says that there is still a decent profit to be made by the developers here, but there are too many unknown factors to be sure! My first charge holding seems rock solid, but i'd like to see enough profit left to renew the developers other loans... *Ignoring the value of the leasehold for this rough calculation |
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r1200gs
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Post by r1200gs on Jul 27, 2018 12:05:07 GMT
That renewal "shortly" is sure taking one hell of a time, FS cagey when asked why.
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r1200gs
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Post by r1200gs on Aug 30, 2018 7:19:57 GMT
Another month rolls by and no renewal, no payments, no sign of any sales. What's more is I can't see any marketing.
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adrian77
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Post by adrian77 on Aug 30, 2018 11:16:37 GMT
worrying !
I have found some marketing but they are advertised as BTL not sure how old the marketing is and it is not obvous whether they are all finished. The seller is wanting a 20% deposit which strikes me as very high. I have read that property sales are very low at the moment and that
the very big player CountryW** estate agents are in big trouble (I'm gutted)
This one is over 2 months late - very worrying not least as I am in this one and I think another loan by the same borrower.
Just looked at the excellent mrclondon DD - should have read it before I nibbled - looks like another mega horlicks to me as this chap is out of readies and up to his eyes in debt but what do I know.
As I see it there is only one option - immediate defaut and put the damn thing to auction and stop waiting for Godot as he's not coming unless he gets the powerboat stored in Whitehaven to run with the NI wind turbine.
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paulb
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Post by paulb on Aug 31, 2018 15:29:44 GMT
Another update (on some of the tranches, at least) - completion was delayed, but is now expected. I assume for two apartments, as per the previous update, but it's not clear.
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Post by mrclondon on Sept 1, 2018 21:50:28 GMT
Photos taken today 11am (1st Sept)
Construction hoardings still surround the building. New windows and balcony doors throughout, but in various places bits of the cladding are missing. Balcony railings haven't been repainted and are badly corroded. Quite a few of the black cladding panels have a whitish stain on them. No advertising hoardings of any description, and stating the obvious the place doesn't feel ready for imminent occupation. Has the money run out before it could be completed ?
The neighbouring properties are all reasonably smart terraced houses. Feels like it should be successful if only it could be completed.
looking southwards    looking northwards   looking westwards at the side   looking eastwards at the side 
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adrian77
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Post by adrian77 on Sept 2, 2018 7:52:04 GMT
Thanks for the photos - love this forum where such information can be so easily disseminated - unlike when I were a lad and one had to wait for t'pigeon...
I am about to put this one in my FA league as this chap has several other FS loans which seem to be in a similar state which with no sales and interest at 2% (or whatever) per month is not a good place to be.
These flats look nowhere near ready to me and the overall street appeal is pretty poor with no advertising hoardings etc. I have downloaded and enlarged the photos - the rooms you can see don't seem fitted-out, rusty original soil pipes are still showing as in damaged concrete in places - if you look at the photo above the text "looking northwards" you can see a drain pipe sticking through the balcony railings -this does not indicate highly quality renovation to me! These photos area are a stark contract to the photoshop mock-up! As a dealer myself I would not touch this current building with a bargepole.
I will do some more research but this one looks like a major haircut to me.
Should have done more research before I invested in this one!
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james21
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Post by james21 on Sept 2, 2018 11:13:02 GMT
Thanks for the photos - love this forum where such information can be so easily disseminated - unlike when I were a lad and one had to wait for t'pigeon... I am about to put this one in my FA league as this chap has several other FS loans which seem to be in a similar state which with no sales and interest at 2% (or whatever) per month is not a good place to be. These flats look nowhere near ready to me and the overall street appeal is pretty poor with no advertising hoardings etc. I have downloaded and enlarged the photos - the rooms you can see don't seem fitted-out, rusty original soil pipes are still showing as in damaged concrete in places - if you look at the photo above the text "looking northwards" you can see a drain pipe sticking through the balcony railings -this does not indicate highly quality renovation to me! These photos area are a stark contract to the photoshop mock-up! As a dealer myself I would not touch this current building with a bargepole. I will do some more research but this one looks like a major haircut to me. Should have done more research before I invested in this one! Good summary of C***** House , its unfinished why: probably run out of cash the borrower has several big loans with FS. If you are in the earlier loans you should be OK but there is a loan for £370k that ranks behind (FS love their seconds) and if that you had better be feeling lucky
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Steerpike
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Post by Steerpike on Oct 1, 2018 9:53:48 GMT
I requested an update from FS on this apparently neglected project today and was told that there isn't one (FS last update was 31-Aug-18).
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jonno
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nil satis nisi optimum
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Post by jonno on Oct 1, 2018 9:58:11 GMT
I requested an update from FS on this apparently neglected project today and was told that there isn't one (FS last update was 31-Aug-18). What? an update or a neglected project??? 
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adrian77
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Post by adrian77 on Oct 1, 2018 15:45:55 GMT
I agree this one looks neglected - will check just how much money this chap has borrowed for this project (can't remember if he had the Formby flats as well)
Have blown up the photos from sep 1st above - very useful - impossible to say what has been done on the inside but the exterior work is either very poor or not even started - cladding is flaking, hand rails rusty etc, disused drainage pipe left in building, no groundworks done etc etc. Believer me scaffolding does not come cheap so is this chap going to rehire it or just hope nobody will notice the grotty exterior?
This photo is nothing like the architects mock-up and I don't think these flats will attract anywhere near the valuation.
This is not exactly contradicted by the below
The Formby flats seem a better buy to me - wonder how much they are now!
Sleeper alert: yes I have a nibble in this one...
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r1200gs
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Post by r1200gs on Oct 25, 2018 8:46:13 GMT
Nearly two months since being told that completion could now go ahead on the sale of two flats and ….nothing. FS apparently can't tell me a single thing other than the promised update last week is likely to now be in the next couple of weeks.
One thing I have come to understand in this peer to peer lending lark, no news is usually bad news.
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