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Post by mrclondon on Aug 4, 2017 20:01:19 GMT
A better than average valuation report, based on planning approval granted a few months ago, for a development of flats in an infill location reasonably close to the town centre and station. I've visited the Medway towns on several occaisons, and like the overall area.
Inevitably its a residual value valuation, but its important to note it includes £157,000 of capitalised ground rents (£300 pa per unit 4% pa investment yield). Ref: pdf page 29 1st para (page footer numbering: page 25). If the government rules that ground rents must be peppercorn on all new leases, then £157k needs knocking off the residual value, so potentially the site value is actually £760k or 84% LTV. Site is being purchased for £910k with £640k FS loan
I still need to check the comparables for legitimacy, but all things being equal I'll probably take a slice of this one. The email from FS said it launches tomorrow (Sat 11am) but its actually live now.
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Liz
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Post by Liz on Aug 4, 2017 22:18:18 GMT
These type of loans always worry me. What happens if they can't get development finance?
I would much prefer a site with finance and progress in place; and with an "out" in the near future.
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Post by dan1 on Aug 4, 2017 22:44:41 GMT
For what it's worth the station is served by high speed Javelin trains with journey times to London St Pancras of under 40 minutes.
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elliotn
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Post by elliotn on Aug 5, 2017 3:33:41 GMT
Rochester high street has good footfall, the nearby castle is popular as are the town festivals, particularly Charles Dickens, well served by trains and buses and as dan1 notes fast train (after Gravesend) to St Pancras and a short hop to the coast the other way. I'm in*. *Except I'm exiting because of risible overdue loans' 'management'. |
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oldgrumpy
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Post by oldgrumpy on Aug 5, 2017 8:52:51 GMT
Rochester high street has good footfall, the nearby castle is popular as are the town festivals, particularly Charles Dickens, well served by trains and buses and as dan1 notes fast train (after Gravesend) to St Pancras and a short hop to the coast the other way. I'm in*. *Except I'm exiting because of risible overdue loans' 'management'. ...in ... out... shake it all about 
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jjc
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Post by jjc on Aug 10, 2017 13:15:46 GMT
From a quick look at CH unless I’m mistaken the likely borrowers (principals) may have a troubled scheme funded by Wellesley (& another portion of land intended to make up Phase 2 of that development funded by another lender) in administration. Loans made by these two lenders were c. £2.74m & 450k respectively. Reason for the problems a 500-600k overshooting on costs.
We can’t (yet) be sure this is our borrower, but if it is it seems there’s been some shenanigans with dates of birth & addresses on CH entries, not usually a good sign.
Perhaps troublingly it seems the Administrator is looking into c.£80k of funds possibly misappropriated by the directors.
I presume FS’ super duper duedil will have picked up on this straightaway (took me 2 secs) but thought worth flagging to lenders.
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rs
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Post by rs on Aug 10, 2017 13:35:24 GMT
I suppose this explains why it's on FS as there is a complete lack of transparency unlike other FS p2p competitors. No doubt the loan will not be funded and maybe FS will have to cancel the loan pretty quickly now due to various shenanigans.
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jjc
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Post by jjc on Aug 10, 2017 14:28:00 GMT
rs if you think this loan will be pulled you might be mistaken &/or have a misappreciation of what sort of lending goes on in p2p. I have been looking at borrowers for a couple of years now, & would suggest more of us lenders do. Happy to PM a CH link to those less versed there. As a side-note the case in question is similar to LY's DFL1 - incomplete build that has run out of funds, in this case being resolved by the lender (Wellesley) injecting £700k more funds to complete it & get better recovery for lenders. The administrator's reports worth reading. Anyhow flagging for lenders to look at & come to their own judgements. I'm not saying it's a loan to ditch, pull or invest in - as always dyor. I am however a little curious as to whether FS duedil picked up on this (it really was just 2 secs of work).
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copacetic
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Post by copacetic on Oct 10, 2017 16:43:25 GMT
This loan was cancelled today (capital and accrued interest repaid) due to the death of a business partner connected to the borrower. It didn't actually go live, just had awaiting activiation status for 62 days.
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