michaelc
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Post by michaelc on Apr 24, 2017 20:20:26 GMT
Must admit I haven't yet looked at the refused planning application. This latest loan which is for development that is under permitted development rights doesn't look like it would be permitted under such pd rights would it? I mean just a cursory glance at the current vs proposed front elevations seem to show windows and doors moved around and rendering materials quite different to current. It looks like quite a different house. Would it really be allowed under pd ?
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mikes1531
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Post by mikes1531 on Apr 24, 2017 22:32:12 GMT
What struck me about this loan was the reduced valuation, from £1.5M to £0.95M, apparently just because the "borrower has changed his plans". (If the reason for the change of plans was because PP for the intended scheme was refused, ISTM that FS has been a bit economical with the truth here.)
What this tells me is that the valuation of a potential development is highly sensitive to the actual development proposed, and therefore is subject to a major revision if the plan changes for whatever reason. If FS had offered a 70% LTV loan against the original valuation, they'd have found themselves with a £1.05M loan against security now worth £0.95M, and the borrower could have walked away laughing.
It would appear that extreme care is required to avoid such a situation.
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elliotn
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Post by elliotn on Apr 25, 2017 0:55:51 GMT
That would certainly be a risk of residual values before the planning was set in concrete.
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Liz
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Post by Liz on Apr 27, 2017 12:26:22 GMT
That fall in value is worrying! Just shows the original value had a lot of "hope" value, not good.
I avoided, I just think there are safer loans if you are patient.
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rs
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Post by rs on Jun 2, 2017 20:25:37 GMT
That fall in value is worrying! Just shows the original value had a lot of "hope" value, not good. I avoided, I just think there are safer loans if you are patient. any update on this loan fs?
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Post by da2279 on Jun 26, 2018 9:04:34 GMT
Just had a chat with the people at FS and the latest is....
"Yes we have received the valuation report and we are just preparing the renewal loan, an email will be sent once the renewal is ready
"
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crazi
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Post by crazi on Sept 11, 2018 16:53:41 GMT
Is this the same loan as 3075461346
- Residential conversion at C***** C**** Quarry - Renewal and Increase?
Over the past 6 month loan, nothing was done and yet the "new" GDV valuation has miraculously jumped from £1.75M to £3M
Another trustworthy valuation being fed to Lenders! FS should hang their heads in shame...
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rogerthat
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Post by rogerthat on Sept 11, 2018 17:11:03 GMT
Is this the same loan as 3075461346 - Residential conversion at C***** C**** Quarry - Renewal and Increase? Over the past 6 month loan, nothing was done and yet the "new" GDV valuation has miraculously jumped from £1.75M to £3M Another trustworthy valuation being fed to Lenders! FS should hang their heads in shame... Even a cursory glance at the available loans page will give you your answer
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rs
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Post by rs on Sept 11, 2018 17:19:50 GMT
Is this the same loan as 3075461346 - Residential conversion at C***** C**** Quarry - Renewal and Increase? Over the past 6 month loan, nothing was done and yet the "new" GDV valuation has miraculously jumped from £1.75M to £3M Another trustworthy valuation being fed to Lenders! FS should hang their heads in shame... My understanding was Brexit has created a significant buyers market hence increasing valuations by 50% for large quarry properties! But then again Whitehaven had a favourable legal outcome for the borrower that would pay off the whole loan.
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james21
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Post by james21 on Sept 11, 2018 18:31:06 GMT
Is this the same loan as 3075461346 - Residential conversion at C***** C**** Quarry - Renewal and Increase? Over the past 6 month loan, nothing was done and yet the "new" GDV valuation has miraculously jumped from £1.75M to £3M Another trustworthy valuation being fed to Lenders! FS should hang their heads in shame... My understanding was Brexit has created a significant buyers market hence increasing valuations by 50% for large quarry properties! But then again Whitehaven had a favourable legal outcome for the borrower that would pay off the whole loan. Sorry you are well off the mark; managed to avoid this one; pure speculation
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cwah
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Post by cwah on Oct 7, 2018 23:49:29 GMT
hello all,
Anyone has done an analysis on this loan? 55% LTV looks good, but at current time under distressed sale would that hold the value?
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aj
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Post by aj on Oct 8, 2018 7:03:10 GMT
Wouldn't touch it personally.
-Already a list of delays and excuses on the renewal, no real progress made.
-The multiple loans/securities situation looks like the borrower is already in financial difficulties.
-Single high price ticket property is always going to be hard to value accurately.
-No planning permission on the base phase+Would I want views of a holiday park from my £3M clifftop mansion?
There are much better loans available than this one...
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cwah
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Post by cwah on Oct 8, 2018 12:10:27 GMT
Wouldn't touch it personally. -Already a list of delays and excuses on the renewal, no real progress made. -The multiple loans/securities situation looks like the borrower is already in financial difficulties. -Single high price ticket property is always going to be hard to value accurately. -No planning permission on the base phase+Would I want views of a holiday park from my £3M clifftop mansion? There are much better loans available than this one... Thanks. I was attracted by the 50% LTV but it's likely coming out of thin air (or nice cheque to the valuer) so I won't put my £ in!
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adrian77
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Post by adrian77 on Oct 9, 2018 0:29:40 GMT
totally agree - this one seems highly problematical to me. Would I rent a log cbin with fantastic views a of a quarry face.... On the other side I guess it may come good if refinancing occurs (à la cinema)
Personally loans that come with cashback tend to worry me - has anybody measured how many such loans have gone pear-shaped?
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Post by df on Oct 9, 2018 3:29:23 GMT
totally agree - this one seems highly problematical to me. Would I rent a log cbin with fantastic views a of a quarry face.... On the other side I guess it may come good if refinancing occurs (à la cinema) Personally loans that come with cashback tend to worry me - has anybody measured how many such loans have gone pear-shaped? It's first time I've seen cash back on FS, probably didn't notice them before. I remember some from Col and MT... I try to avoid them when cash back is offered at the start, but this one was offered when I already committed (only a little for this kind of loan). Cash back is usually offered because the loan is too large for platform to fill and/or not attractive. In this case (according to update) it is to speed up the funding, the borrower is desperate to receive the funds asap. Given that and available bonuses (somebody chucked 25k in this loan recently to get extra 2%) tells me that the prospect of selling it prior to maturity is very low, it will be flooded with 1% discount offers.
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