09dolphin
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Post by 09dolphin on May 2, 2017 10:32:22 GMT
Please disregard above post. I've reread the valuation and think I haven't totally understood the valuation
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Liz
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Post by Liz on May 2, 2017 10:52:22 GMT
Please disregard above post. I've reread the valuation and think I haven't totally understood the valuation I think your first assumption was right.
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Post by mrclondon on May 2, 2017 12:18:07 GMT
Two approaches to get a feel for current valuation excluding residential planning hope value: a) Investment yield. VR Section H reveals the lease to garage operator is monthly license, with target of £65,000 pa. Given the lack of a long term lease, I'd suggest an investment yield of no less than 10% which implies the site as a garage is valued at c. £650k b) Cleared brownfield land (for light-industrial re-use) VR Section F reveals to site area is approx 0.1 hectares. According to 2015 government figures brownfield land in SE of England is approx £1.1m per hectare. If we assume a modest £20k to demolish the garage buildings and remove footings etc then the site as cleared brownfield land is valued at c. £90k for light industrial reuse Worth noting from the same government figures, 1 hectare of cleared land in Wycombe council area with residential permission is c. £4.4m valuing the site at around £450k for a typical building density. VR para I.02 states the proposal is for 3 or 4 detached 3 or 4 bed properties. On a 0.25 acre site that is really stuffing them in, and is perhaps causing even a residual value valuation (with hope value) to be overstated. Needless to say I've not touched this loan. |
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Post by mrclondon on May 2, 2017 12:43:54 GMT
... VR Section F reveals to site area is approx 0.1 hectares. According to 2015 government figures brownfield land in SE of England is approx £1.1m per hectare. If we assume a modest £20k to demolish the garage buildings and remove footings etc then the site as cleared brownfield land is valued at c. £90k for light industrial reuse ... Unfortunately your link is broken / incomplete - any chance of fixing or just posting it 'long hand', please? Ta  Link hopefully now corrected, but belt and braces, here it is longhand www.gov.uk/government/uploads/system/uploads/attachment_data/file/488041/Land_values_2015.pdf
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09dolphin
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Post by 09dolphin on May 2, 2017 15:59:53 GMT
I've read and reread the valuation many times and I'm still not sure I understand it. Thank you for the additional information given in the responses which has enabled me to make a better informed decision.
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elliotn
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Post by elliotn on May 2, 2017 16:06:28 GMT
I've read and reread the valuation many times and I'm still not sure I understand it. When you don't understand a loan it's probably fate that you and Hazel weren't meant to be
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Liz
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Post by Liz on May 2, 2017 21:36:28 GMT
I've read and reread the valuation many times and I'm still not sure I understand it. When you don't understand a loan it's probably fate that you and Hazel weren't meant to be What's this about 09dolphin and hazellend 
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mikes1531
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Post by mikes1531 on May 6, 2017 17:14:11 GMT
Two approaches to get a feel for current valuation excluding residential planning hope value: a) Investment yield. VR Section H reveals the lease to garage operator is monthly license, with target of £65,000 pa. Given the lack of a long term lease, I'd suggest an investment yield of no less than 10% which implies the site as a garage is valued at c. £650k b) ... I considered a similar calculation, but I got stuck over the 'target' lease rate. Is that a meaningful term that I just don't know the definition of? Or does it mean little more than what the owner would like to achieve? ISTM that what we really need to know is what the garage actually is paying -- or at least the valuer's opinion of the market rent.
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peteuk
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Post by peteuk on May 8, 2017 22:07:24 GMT
Thanks to mrclondon working out the pros and cons has become a lot easyer on this loan , highlighting the low qaulity of dd FS do for there loans, eventually this will bite them in the backside as people become more savvy and get cheesed off with there attitude of growth at cost to investers
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rs
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Post by rs on Jun 10, 2017 18:26:32 GMT
Thanks to mrclondon working out the pros and cons has become a lot easyer on this loan , highlighting the low qaulity of dd FS do for there loans, eventually this will bite them in the backside as people become more savvy and get cheesed off with there attitude of growth at cost to investers Finally 100% funded so hopefully will renew in 8 months time.
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fp
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Post by fp on Jun 16, 2017 8:33:24 GMT
20 mins ago
There have been some delays from the vendor of this property and we are currently seeking confirmation as to whether the loan will still proceed. If cancelled, interest will be paid for the duration of the investment.
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rs
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Post by rs on Jun 16, 2017 19:54:04 GMT
20 mins ago There have been some delays from the vendor of this property and we are currently seeking confirmation as to whether the loan will still proceed. If cancelled, interest will be paid for the duration of the investment. Shame it's not proceeding as thought it was a good loan.
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