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malcolm roberts
Posted: 28 January 2012 18:06:37(UTC)
#1

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Nine acres of leased land and has had £200k invested. It now produces £44k turnover for from only fourteen days use per annum.
Due to lease conditions the rest of year it does nothing.
The site has been valued at £425k.
The owner wants to sell and has offered it at £250k.
The banks are not lending at present but have indicated they would lend if owned the site. Alternative funding is too expensive.

The land is suitable for many uses and local authority have indicated they would welcome a application for warehousing/industrial units on a small scale.
The valuation suggests if planning sought and granted for 50% coverage of site for warehouse/industrial units, OMV is £1.1million.

Indicated return for any investor would be £20400 at a Annual Percentage Rate 8.16%.
monthly return of £1700.


Looking for suggestions from potential investor/s not purchasers..
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malcolm roberts
Posted: 28 January 2012 18:25:33(UTC)
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malcolm roberts;13650 wrote:
Nine acres of leased land and has had £200k invested. It now produces £44k turnover for from only fourteen days use per annum.
Due to lease conditions the rest of year it does nothing.
The site has been valued at £425k.
The owner wants to sell and has offered it at £250k.
The banks are not lending at present but have indicated they would lend if owned the site. Alternative funding is too expensive.

The land is suitable for many uses and local authority have indicated they would welcome a application for warehousing/industrial units on a small scale.
The valuation suggests if planning sought and granted for 50% coverage of site for warehouse/industrial units, OMV is £1.1million.

Indicated return for any investor would be £20400 at a Annual Percentage Rate 8.16%.
monthly return of £1700.


Looking for suggestions from potential investor/s not purchasers..
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Clive B
Posted: 28 January 2012 23:21:55(UTC)
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Joined: 25/11/2010(UTC)
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"The valuation suggests if planning sought and granted for 50% coverage of site for warehouse/industrial units, OMV is £1.1million."

Sounds like a classic land banking scam to me, suggesting a piece of land will be worth way more than its current value IF ONLY it gets planning permission (which the seller knows is never going to happen).

My suggestion ? - stay clear.
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malcolm roberts
Posted: 29 January 2012 01:21:36(UTC)
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Hi Clive B.

Thanks for that.
Fortunately I am fully informed, I have seen the valuation and checked its credibility and I know the site.
The reason for the sale price is due to an agreed price arranged between the owner and the lessee before the remedial work and investment was implemented.

The only way the owner can back out of the sale is: if the lease expires before the lessee can purchase.
Under the lease terms, in the event that the site has to be vacated, the lessee has to return the site back to the state it was in. (which was a muddy field).
Returning it back to its value of £180k.

Should the purchase conclude I do know that a covenant is being put in place, It will state that `in the event the land is sold for development that 50% of the uplift will be claimed by the seller.

The idea is not to sell but to expand the development and rent out the units.
Hence not having to pay the up lift.

What do you think now?
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Alex Duncan
Posted: 30 January 2012 14:03:13(UTC)
#5

Joined: 05/01/2012(UTC)
Posts: 1
When things seem too good to be true they usually are.
I regularly receive lovely expensive brochures telling me how much money I would make if I would only make an investment. If I know of such a deal would I be writing to total strangers( ie mugs ) letting them know how they could share in my good fortune. I dont think so.

Anyone living in the Bristol area will tell you about Bristol City FC trying to sell their ground for development and moving a few hundred metres away to a nice green space. The same scene is being played out all around the country.

I would probably be better off trying my luck in the Euro Millions draw twice a week. If I manage to pick two numbers out of 50 I will at least get my money back.
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alan thorburn
Posted: 30 January 2012 14:13:51(UTC)
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Alex Duncan;13670 wrote:
When things seem too good to be true they usually are.
I regularly receive lovely expensive brochures telling me how much money I would make if I would only make an investment. If I know of such a deal would I be writing to total strangers( ie mugs ) letting them know how they could share in my good fortune. I dont think so.

Anyone living in the Bristol area will tell you about Bristol City FC trying to sell their ground for development and moving a few hundred metres away to a nice green space. The same scene is being played out all around the country.

I would probably be better off trying my luck in the Euro Millions draw twice a week. If I manage to pick two numbers out of 50 I will at least get my money back.


Agreed! TOO GOOD TO BE TRUE !
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malcolm roberts
Posted: 30 January 2012 14:33:16(UTC)
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Out of curiosity.
Just for a moment put the idea of a scam to the back of your mind.
Now what would your opinion be if this was a true account of this offer?
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linhurst
Posted: 30 January 2012 22:13:58(UTC)
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Joined: 03/01/2012(UTC)
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The covenant which is being put in is for "overage" and is a standard clause the seller will want to put in to cover the future development gain. It does cause a lot of disputes when development actually occurs either through planning permission or actual building depending on the trigger point. These sort of covenants used to be for perpetuity which was 80 years but I think is now 21 years.

You want a good "legal eagle" because these clauses are not bullet proof as the legal cases are very new and almost every case has a different set of facts.

Needs a lot of trust by all parties.
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