The monthly updates are pretty comprehensive in fairness. But imagine what the auditor/advisor bill is going to be for these perma-delayed results. |
I cannot understand how this is still not delisted from LSE. If you don't hand in reports of your private limited business to the authorities for two years, you'd be in jail for a while now. |
October's here and we still haven't received the results promised by mid September.
I can understand struggling with the "going concern" element, but surely the auditors have figured out how bad the numbers were... |
A bit off topic... but for any leaseholder unhappy with their service charges there's always the option of RTM (if the leaseholder believes that their charges are excessive). Not an easy route to go down there and it needs buy in from half of the leaseholders (ideally, all). I've got a leasehold flat at the moment that has excessive service charges where my long term plan is to let the (freeholder appointed) management company sort out the historic issues then I'll spearhead the appointment of the RTM company once the going is simpler. It's that or watch the capital value of the property be destroyed. |
Jeez. Yes, avoid leasehold for that reason. Have seen even "genuine" ones where the charges are rising faster than the rent, and will eventually consume all of it & more.
What really irks me with the "con" auction houses is how they bury the charges. They claim they're all in the legal pack, but then they stick the charges in random places, and put some as £, some in words. So you can search the Special Conditions and see "£1,999 contribution to legals" and several others, & think you've seen them all, but somewhere else it will say something like nine thousand nine hundred and ninety nine auction fee.
Feel for those who get suckered - the success of the auctions implies there's a never-ending supply. |
One of the property viewers yesterday bought off BP Auctions. House cost £11k plus £12k in hidden fees. Pictures online did not match reality. Another one bought a flat for £12k rented out at £7k a year. Flat was great and tenant great payer on time, but the service charge is £6800 a year. £200 income for £18 k with fees. |
Some of the cheapo auction houses are shocking - Bond Wolfe, one of the RLE boss's web of connected oompanies, sticks out. Vast hidden fees. |
There are so many auctions on at the moment and some Bp auctions are crooks along with a few others Allsops are better. Viewed a non Allsop yesterday and when I said I want to book a survey the estate agent said 3 people had carried out a survey and walked. Looked on Zoopla and house was bought for £80k in May 24 and on market for £30k. So many sharks in this game. |
I admit one of my five is in that category.
Other thing you need to consider on the flipping front is, just how many (1,000's) will be doing the same thing. Quite a few have been popping up in other auctions already. HOME are now including a clause to stop people agreeing an onward sale before the auction purchase has completed.
The best ones I've bought have had paying tenants and only minor maintenance backlog (always some - the CICs are paper-only in some cases). |
If you are going to just give them a coat of paint and rent to the desperate then it can work. I was looking to do up a few and flip. Looked at a few and where they are your final sale price means it is not worth doing. |
Agree some need £30k+, but from what I've seen from previous auctions, most are going at twice Guide. Very few going unsold. |
What I have seen today, there are some terrible properties that are worth less than the guide price. I have seen decent properties for not much money up north and would not buy one needing a new kitchen bathroom and everything else from decoration to plasterwork for £30k when rightmove has ones for £50k done up and even with tenants. Allsops are being greedy and I think a lot will go unsold. |
Must admit I didn't view any of the 5 I bought. Viewed quite a few others - HOME seemed better with viewings with the earlier ones.
What I wish I'd done with hindsight, is get the CIC name from the legal pack, then find out whom they'd appointed as managing agent (if any), then asked the agent which the better-paying, better-maintaining tenants were.
But life's too short if you're looking at eg 40 - and 200+ in this auction.
Best of luck. |
Thanks for the advice and taking a builder with me (known him since nursery school). Will only consider ones I can view. |
They put them on v cheap, it attracts bidders, sunk costs seem to do the rest. Seen few go genuinely cheap.
Still at prices of less than half what HOME shareholders paid tho :)
My experience is you sometimes get lucky (particularly if same AST tenants as prior to HOME's ownership), sometimes you get a trashed disaster, and even the ones HOME claim are tenanted often aren't. Have only to look at HOME's rent collection stats, albeit that's via the fake-eo CICs.
Good luck - also know that many of the original sellers buy back the properties they know to be decent.
Overall, I've been surprised how successful the auctions have been - you'd think there'd be a limit to how many cash buyers there are. |
I have looked at most of the home properties and half have no viewings and are occupied on terms unknown. How are you supposed to bid on something blind? And how can the auctioneer value them? |
I am going to see a few of them tomorrow as might buy depending on price and condition. Am half expecting ex tenants to have trashed them if honest. |
Looks to be a bumper sale of about 200 Home properties at this month's Allsopps auction 25th-27th September. |
"It has been clear from consultation with Shareholders, and the feedback received following the announcement on 17 June 2024, that there is significant support for a realisation strategy and the return of capital to Shareholders when the Company is able to do so." - Notice of General Meeting, p.7.
Nice to have been asked. Not. |
Relisting? Would be nice.
But who's buying once it's trading again? Especially since it's been made clear that there won't be any cash distributions due to the legal liabilities. (it should be the old Board and Alvarium who are liable but that's a different discussion...)
I can't say I have much appetite at this stage for giving away my shares at 5 or 10p. Might as well let things play out... |
"how can a £10.7m debt repayment cost £12.2m"?
That post needs to remain in history to explain to ADVFN'ers what happens when company breaches it's debt covenants. The lender bank pillages the balance sheet.
It might also be useful to some of the directors running some of the more highly geared investment trusts, but that's another matter. |
SW are screwing the corpse - how can a £10.7m debt repayment cost £12.2m, and what happens when (as I strongly suspect) the loan isn't fully repaid by the hard deadline of 31st December? Fees will be huge.
And HOME again quoting gross proceeds - would be interesting to know the legal/Allsop fees.
And seemingly some audited results "...Shortly", so perhaps finally a relisting? |
Let's give them some credit - a sale finally above NAV value. Did see one of the larger ones go for triple the (low) reserve.
"Monthly Summary
· As announced on 30 August 2024, 101 properties exchanged for sale at auction for a total of £18.5m at auctions held over the previous two days. The gross proceeds were 4.8% above the draft August 2023 values.
· Repayment of £12.2m of debt was made to the Company's lender in August comprising a cash repayment of £10.7m and net break gains of £1.5m applied to loan principal. Total borrowings were reduced to £93.8m as at 31 August 2024.
· Total gross income received for the month was £1.0m.
· The Company's audited results for the year ended 31 August 2022 ("FY22 Audit") are expected to be published shortly. "
But there's still a long way to go by 31st December, and repaying £10.7m and having a £1.5m break fee appliced on top seems... harsh? |
Curious how this epic racket affected house prices at the lower end.
Meanwhile: |
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