pip
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Post by pip on May 18, 2017 6:58:10 GMT
The loan renewal property development in P******h states that the land was bought in October 2016 for £39,999 and the current land value is £315,000.
Not a bad return at all! Either that or its another FCFU.
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Post by Butch Cassidy on May 18, 2017 7:09:32 GMT
Possible bought as agricultural/waste land & then valued as development land with approved planning permission? Alternatively just has a "good mate" who happens to be a RICS valuer - seem to be a lot about!
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am
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Post by am on May 18, 2017 14:39:05 GMT
The loan renewal property development in P******h states that the land was bought in October 2016 for £39,999 and the current land value is £315,000. Not a bad return at all! Either that or its another FCFU. I presume that this is planning uplift. (£315,000 for 12/13 building plots seems quite reasonable - even cheap.) I am in two minds about the practice of councils selling off land cheap without planning permission. On the one hand it means that the profits from planning uplift go to private individuals rather than the public; on the other hand if councils sought planning permission before selling they would have a conflict of interest (maximising returns versus regulating development in the public interest.)
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blender
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Post by blender on May 18, 2017 15:35:34 GMT
If it is sold off cheap then you would worry about the "moral hazard" to those public servants who sell it on our behalf. The benefit must surely go to the public. If sold cheap you would think there would be a condition of sale which either prohibits a planning application for a long period or that in the event of planning permission being gained an additional sum becomes due.
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adrianc
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Post by adrianc on May 18, 2017 17:36:47 GMT
If sold cheap you would think there would be a condition of sale ... that in the event of planning permission being gained an additional sum becomes due. That kind of uplift clause is far from rare.
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pip
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Post by pip on May 18, 2017 17:39:48 GMT
I think we are going off topic here. I highly doubt the land was bought off the council for £39999 and is worth £315000 6 months later. Even taking into account if planning permission was granted in the period, a ten fold gain. As I say if that is possible I should be buying land! It makes me suspect something else is happening here, either a) the land was severely undervalued when bought, b) the current valuation is crazy or c) the prospectus has an error in it.
Until I get an answer I won't get a warm fuzzy feeling with this one that lets me sleep at night. If I had lent to this one I would be tossing and turning every night thinking it though in my head.
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blender
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Post by blender on May 18, 2017 20:33:53 GMT
Sorry, Pip. Naturally we were assuming that an error by FC was impossible. And once you have eliminated the impossible, then what remains, however improbable, must contain the truth.
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Post by yorkshireman on May 18, 2017 22:02:31 GMT
Sorry. Naturally were we assuming that an error by FC was impossible. And once you have eliminated the impossible, then what remains, however improbable, must contain the truth. mmm..... 
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Post by gaspilot on May 19, 2017 8:59:23 GMT
Sorry, Pip. Naturally we were assuming that an error by FC was impossible. And once you have eliminated the impossible, then what remains, however improbable, must contain the truth. Elementary..... my dear Watson.
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