criston
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Post by criston on Jul 28, 2020 14:08:56 GMT
So with the loan at £1,328,300; the interest could be approaching £400,000 (rough figure without any real knowledge of each tranche)
£1m down payment with £700k odd as second charge should be rightly rejected.
However, I would like to know what the real finished development valuation is.
Always wary now, of FS borrowers trying to pull a fast one.
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pfffill
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Post by pfffill on Jul 28, 2020 14:15:22 GMT
So with the loan at £1,328,300; the interest could be approaching £400,000 (rough figure without any real knowledge of each tranche) £1m down payment with £700k odd as second charge should be rightly rejected. However, I would like to know what the real finished development valuation is. Always wary now, of FS borrowers trying to pull a fast one. I'm unclear - who would we rank behind as second charge, were the deal to be taken by C&G?
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criston
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Post by criston on Jul 28, 2020 14:26:01 GMT
So with the loan at £1,328,300; the interest could be approaching £400,000 (rough figure without any real knowledge of each tranche) £1m down payment with £700k odd as second charge should be rightly rejected. However, I would like to know what the real finished development valuation is. Always wary now, of FS borrowers trying to pull a fast one. I'm unclear - who would we rank behind as second charge, were the deal to be taken by C&G? After the lender of the £1m I assume.
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ozboy
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Post by ozboy on Jul 28, 2020 14:58:57 GMT
So with the loan at £1,328,300; the interest could be approaching £400,000 (rough figure without any real knowledge of each tranche) £1m down payment with £700k odd as second charge should be rightly rejected. However, I would like to know what the real finished development valuation is. Always wary now, of FS borrowers trying to pull a fast one. Yes, and I wonder who, in the background, might be giving them guidance and advice?  
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adrian77
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Post by adrian77 on Jul 28, 2020 16:51:21 GMT
I agree with CG -just why the hell should CG take a second charge ? Maybe I am being thick yet again but given the total loan is £1.38m plus say £400K interest then we will only get the remaining capital back plus interest if this house is sold for this sum plus the new loan plus interest less £1m - to me this has disaster written all over it and is just yet another FS horlicks with atrocious DD and project oversight. Say the new finance is £2m then the house will need to be finished to get anything like this so that will need to cover finishing costs, plus interest, and then they will need to find a buyer which can easily be 3 months before we get the readies - as I have said before - most developments do not have the profit margin to cover borrowing money at say 20% for a couple of years and this bloke hasn't exactly got an impressive track record of finishing developments on time and that is being generous
From Sir Ozboy OBE
Nice thinking and I know who you mean - looks like we were right about this one as well
I would wager that this chap is hoping FS (as was) would take a loss whilst he rolls this one over to a new mug lender rather than have it repossessed as he know FS have let themselved get into a right mess over this one i.e. accept a capital loss now or foreclose and accept a loss after all expenses paid in about a year - only question is which will give the lower loss!
don't forget "organic growth it's a process"...
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iRobot
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Post by iRobot on Jul 28, 2020 17:29:13 GMT
So with the loan at £1,328,300; the interest could be approaching £400,000 (rough figure without any real knowledge of each tranche) £1m down payment with £700k odd as second charge should be rightly rejected. However, I would like to know what the real finished development valuation is. Always wary now, of FS borrowers trying to pull a fast one. Allowing for the staggered tranches, my calcs suggest £280k at the lender rate of 13% and £430k at an assumed borrower rate of 20%, so £400k pretty much spot on! As is so often the case with these things, the devil is in the detail, and I suspect lenders are privy to about 10% of the details at best. You've mentioned the important one, but for my money, I'd be wanting to see: # a fully costed completion estimate with target date, # a set of revised valuations from valuers and estate agents with local knowledge # a redemption statement from the proposed funder set at a point in time which reflects the estimated completion date plus three months to allow marketing and a sale to transact. # the new funder agrees to cap their exposure at the redemption figure above Then if the sums add up and there's £500k left over to cover lender's outstanding capital and admin / receiver costs (forget lender interest - that's pie-in-the sky territory, in my view) it could be a viable proposition, if * the new funder is also guaranteeing funds to finish * the new funder has a proven track record in development loan management The key is to have everyone's interests aligned. Without a cap on the new first charge holders exposure - which would certainly focus their efforts - any second charge holder is left to the whims of the new funder and might as well kiss lenders' outstanding monies goodbye. Given CG&Co don't appear keen to progress with the proposal, I can only presume some or all of the above is absent.
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criston
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Post by criston on Jul 28, 2020 17:52:31 GMT
I had £14k with FS at one point just before they folded & was already winding down. I am down to around £7k now without loss, with 4 loans left, so lucky so far.
However, having seen some of the nightmares lenders are having to suffer, it's about time borrowers started to suffer.
Can't wait to see lenders getting fully repaid & borrowers like this one, (who play it along) getting stuffed, with any surplus funds swallowed up by receivers etc.
Mind you, I am still pessimistic about this one.
I am also disillusioned by some lenders across all platforms that appear to be so forgiving. You know; the people that are always taken for a ride.
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ozboy
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Post by ozboy on Jul 28, 2020 20:14:26 GMT
I had £14k with FS at one point just before they folded & was already winding down. I am down to around £7k now without loss, with 4 loans left, so lucky so far. However, having seen some of the nightmares lenders are having to suffer, it's about time borrowers started to suffer. Can't wait to see lenders getting fully repaid & borrowers like this one, (who play it along) getting stuffed, with any surplus funds swallowed up by receivers etc. Mind you, I am still pessimistic about this one. I am also disillusioned by some lenders across all platforms that appear to be so forgiving. You know; the people that are always taken for a ride.
Yep , QUITE a few of 'em too. I think I can count on the fingers of one hand where extraordinary forbearance has had a successful outcome.
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iRobot
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Post by iRobot on Jul 28, 2020 20:19:53 GMT
I had £14k with FS at one point just before they folded & was already winding down. I am down to around £7k now without loss, with 4 loans left, so lucky so far. However, having seen some of the nightmares lenders are having to suffer, it's about time borrowers started to suffer. Can't wait to see lenders getting fully repaid & borrowers like this one, (who play it along) getting stuffed, with any surplus funds swallowed up by receivers etc. Mind you, I am still pessimistic about this one. I am also disillusioned by some lenders across all platforms that appear to be so forgiving. You know; the people that are always taken for a ride.
Yep , QUITE a few of 'em too. I think I can count on the fingers of one hand where extraordinary forbearance has had a successful outcome. "Thus, though we have heard of stupid haste in war, cleverness has never been seen associated with long delays." -- Sun Tzu’s The Art of War
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michaelc
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Post by michaelc on Jul 29, 2020 13:31:06 GMT
Not in this loan - don't even know what it is - but see it go past every now and again and wonder if it should be slightly renamed to:
C***s Quarry ?
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iRobot
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Post by iRobot on Jul 29, 2020 13:38:38 GMT
Not in this loan - don't even know what it is - but see it go past every now and again and wonder if it should be slightly renamed to: C***s Quarry ? Why? (The number of *'s in the current subject does accurately reflect the number of missing letters on FS' loan heading(s).) (Edit: although arguably a second part could be added - C***e - which was included in later tranches / renewals, but missing from the earliest loans.)
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Post by overthehill on Jul 29, 2020 14:32:43 GMT
Quarry also has another meaning. They should have suffixed all the loans with Quarry.
"an animal pursued by a hunter, hound, predatory mammal, or bird of prey."
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michaelc
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Post by michaelc on Jul 29, 2020 15:20:20 GMT
Perhaps I have an element of dyxlexia in my genetic makeup but my brain seems to read anything that starts with a C and ends with a T the same way. For the clarification of doubt, the penultimate letter would be an N.
As I say I know nothing about this loan but starting to tar most borrowers with the same brush.
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iRobot
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Post by iRobot on Jul 29, 2020 17:39:20 GMT
Perhaps I have an element of dyxlexia in my genetic makeup but my brain seems to read anything that starts with a C and ends with a T the same way. For the clarification of doubt, the penultimate letter would be an N. As I say I know nothing about this loan but starting to tar most borrowers with the same brush. Ah... maybe a smiley or two would have given a hint to the quimsical whimsical nature of your post
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 15, 2020 16:11:24 GMT
FS filed a winding up petition against this one 21/9/20
Receivers (3) appointed 16/10/20
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