Steerpike
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Post by Steerpike on Oct 31, 2018 10:58:56 GMT
It appears that this project may have reached the stage where the developer can't make money and so has stopped work.
Presumably as the months go by the property will deteriorate as the overall debt increases and so it seems that delay in taking some sort of action is likely to lead to a worse outcome for lenders.
It may be that Funding Secure have something up their sleeve, possibly good news is expected, perhaps from the expert responsible for the F*rmby valuation, but if so one wonders why have they had nothing to say for two months.
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adrian77
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Post by adrian77 on Oct 31, 2018 11:54:42 GMT
looks that way to me
Also (I know this is a complicated area) but council tax is probably due as are security charges etc. If it were my property (thank goodness it isn't) I would be worried about squatters so I would say to FS get shot of the damn building and cut your/our losses asap. Just my opinion
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Oct 31, 2018 13:25:46 GMT
I think the borrower should rent out the apartments that are finished. Then offer to sell the apartment, with incentives, to the person renting the apartment, or increase the rent.
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adrian77
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Post by adrian77 on Oct 31, 2018 16:31:39 GMT
good idea - I think just leaving it empty it the worst thing for him, the building and most importantly people such as myself with money in this loan!
Has anybody local actually inspected this building and able to report just what state it is in? I could ask FS or some chicken entrails which will about as useful...
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jcm9000
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Post by jcm9000 on Nov 2, 2018 15:39:16 GMT
I was doing a wee bit of digging on this one as noted not much of an update in the last two months. Came across an article in the Echo yesterday noting they want to turn it into social housing. Assuming I can't link to the article here so posted in the DD section.
Mods, if this needs moved please do; I couldn't find a thread here for this loan!
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aj
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Post by aj on Nov 7, 2018 10:22:40 GMT
Update posted. No progress as such, but as I only hold the first charge i'm not too concerned on this one. Even in a firesale I think it would still easily beat 650K for the whole block.
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rs
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Post by rs on Nov 7, 2018 10:28:22 GMT
Update posted. No progress as such, but as I only hold the first charge i'm not too concerned on this one. Even in a firesale I think it would still easily beat 650K for the whole block. I reckon another supplementary loan will required to finish the tower block as seems like there's going to be a big snagging list in a sale.
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adrian77
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Post by adrian77 on Nov 7, 2018 10:55:41 GMT
I have never (nor will I) developed a Tower Block as way outside my area of expertise
The video is interesting and states the developer has spent over £1m on fire safety - good for him but what an expense!
I really can't see this one going for £100K per unit so can anybody who knows this market possibly comment
I am in this one but not exactly confident about a 100% recovery although happy to be proved wrong!
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r1200gs
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Post by r1200gs on Nov 7, 2018 11:39:50 GMT
I have never (nor will I) developed a Tower Block as way outside my area of expertise The video is interesting and states the developer has spent over £1m on fire safety - good for him but what an expense! I really can't see this one going for £100K per unit so can anybody who knows this market possibly comment I am in this one but not exactly confident about a 100% recovery although happy to be proved wrong! I'm not soo sure about 100 percent recovery either, but thankfully my unhealthily large chunk is in the first charge with an alleged LTV of 15 percent. It would take some remarkable fookwittery to not be able to recover that.
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rogerthat
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Post by rogerthat on Nov 7, 2018 11:56:08 GMT
Update posted. No progress as such, but as I only hold the first charge i'm not too concerned on this one. Even in a firesale I think it would still easily beat 650K for the whole block.Just checked what I hold in this and it appears mine is all 2nd facility..between T1 & T8..somewhat relieved to see there are (so far) 2 supplemental loans totalling £510K and looking at the pics that mrclondon added a further one might be needed to 'finish' it off. So 1st & 2nd facility loans are £2.075m against a supposed GDV of £4m + ..any cause for concern ?
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adrian77
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Post by adrian77 on Nov 7, 2018 12:21:28 GMT
agree with the above - had a very quick look at the maths - if the current series of loans are not finalised for 12 months then I make that about £0.3m (there is also interest already repaid) plus the £1m for the fire safety then that alone is £1.3m. Glad I am in the first charge! Interesting one to watch - looks as if it will be completed at around Brexit time...
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michaelc
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Post by michaelc on Nov 26, 2018 0:15:29 GMT
Another one for the receivers. 8-(
The latest update says the property is structurally complete. Wasn't it structurally complete before the refurb started?
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rookey123
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Post by rookey123 on Nov 26, 2018 9:14:16 GMT
It does make you wonder when the update was that kitchens were being fitted a year ago! There is clearly zero monitoring being done which compared with other P2P companies is just unacceptable. I am in the first charge on this so still remain hopeful that not even Funding Secure could destroy the entire value down and through 15% LTV.
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james21
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Post by james21 on Nov 26, 2018 9:21:39 GMT
In the DD section you will see this fellow has other loans inc Devel in the W***** and The D. these 2 are not looking too clever either, could explain why he is pot less to finish the interior of the tower
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aj
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Post by aj on Nov 26, 2018 11:02:05 GMT
I'm glad the receivers have been called in on this developer. The loaned money hasn't materialised into progress on their sites which fails to instil confidence.
The recievers seems the best possible solution for some recovery at this point.
My commiserations to anyone with money in the supplemental loans.
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