BL00046 - Darwen, Blackburn

Afternoon,

The borrower is looking to change the planning as family properties are more in demand than apartments in this area. From the individual values in the valuation report, the calculations are as follows;

Removing 36 x 2 bed apartments @ £105,000 = £3,780,000
Adding 22 x 3/4 bed houses @ £170,000 = £3,740,000

The valuation is therefore £40,000 more with the existing planning than with the new planning application, however the houses are expected to sell quicker than the apartments would.

I hope this clears it up for you. 

Gordon

Now tagging Collateral Rep .

Exit - the answer is we are paying for purchase (as platform due diligence will have confirmed), clearance and professional costs but our agents are not in the position to advertise 100% ltpv (with no/minimal borrower equity) and must rely on uplift provided by valuers (as I think you are perfectly aware from your Ly and every other platforms' investments ).

collateral is there a reason for the disparity between the purchase price and the valuation? - eg is this a distressed/reduced sale for any particular reason, so there might be more value in the site than suggested from the purchase price?

How long has it been previously marketed?

£550,000 difference is almost half the purchase price, so really needs an explanation. I suspect this is the reason for the extremely slow uptake on this loan.

You may want to reconsider the valuation, as it stands it looks like the loan is 100% LTV  

Errrrrr, Yep!  I hope to be corrected when The Professional Valuer comes back with their excuses reasons. (I refrain this time from using quotation marks around the words Professional and Valuer  )

Afternoon,

The borrowers have confirmed that they are buying the site under value, this is due to the work they have undertaken over the past six months on the site. The site has had issues due to planning and they have spent months working in the archives of the Borough planner to resolving these issues. This work has cost in excess of £200k to date and has increased the saleability and value of the site considerably.

This is a high priority site for the local council and they have assisted with planning queries. The feedback they have received from the local council and agents is that there is a requirement for family homes in the area and that is the reason for the suggested changes to the planning approval, however this only affects one of the titles on the site and won’t delay commencement of the development.

The agent has had offers in excess of the advertised price but they were declined due the agreement in place with our borrowers. A lot of the work has been completed to validate the planning and work to date with foundations, piling, S106 payments plus other costs and reduction of S38 costs.

The valuation with the planning as it stands calculates at just over £20k per unit and just under £24k per unit if there are more houses and less apartments on the site. As the majority of the ground works have already been completed the value of the site has increased significantly.

We don’t acknowledge estate agents as valuers as we are only covered by the professional indemnity insurance of the surveyor providing the valuation and will call on this should there ever be a shortfall in any default.

This has been added to the loan details along with a PDF with aerial views of the land.

If anyone wants to meet on the site, we are happy to meet to cover off any questions or concerns anyone may have. We will also invite the borrowers and surveyors to attend.

Many thanks,

Gordon

Well, given your recent Rottweilerish tendencies regarding certain Packaged Cars Loans, we would tend to believe you Gordon COLL!  

And your final sentence is nothing short of astonishing, you are gaining good positive ground fast. I'm not sure wot more you can do?!

Again, Certain Other Platforms, Please Note.