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Arthur Kinnell

Lloyds To Dump Thousands Of Houses On Market

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Lloyds Banking Group plans to create a vehicle to manage thousands of homes that it could then sell or float. The bank, which is heavily exposed to the British residential sector, is thought to be at a fairly advanced stage of setting up a special-purpose vehicle, or "residential asset management platform," the Times reports.

Oh good

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Lloyds Banking Group plans to create a vehicle to manage thousands of homes that it could then sell or float. The bank, which is heavily exposed to the British residential sector, is thought to be at a fairly advanced stage of setting up a special-purpose vehicle, or "residential asset management platform," the Times reports.

Oh good

'Residential Asset Management Platform' or RAMP for short.

Freudian slip ?

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What is shocking is they are useing MY tax money to keep these houses off the market so prices are kept high so I pay more !!!!

This system seems to me corrupt.

Any politician that condones this systerm appears to me corrupt also.

I'll vote for the first politician than promises to end it.

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Bit more detail, courtesy of Propertyweek.

Source: http://www.propertyweek.com/news/news-by-sector/finance-and-recovery/agents-sought-for-lloyds-banking-group-homes-legacy/5012730.article

Lloyds Banking Group is on the verge of appointing consultants to asset manage vast residential portfolios that have breached loan covenants or have been repossessed by the bank.

The bank has taken off the market 694 properties held in the Veritas portfolio, which was owned by high-profile investor Grant Bovey before it went into administration. Lloyds’ change of strategy could mean thousands more homes will follow suit.

Lloyds wants agents to manage distressed portfolios, potentially amounting to thousands of homes, before selling them in 12 to 24 months’ time. It is understood the bank wants to work its assets and improve occupancy and, therefore, values, rather than selling unlet houses and flats at a discount.

Lloyds is understood to be looking at exit strategies for the residential assets including portfolio sales or floatations, once the asset management has been completed.

The bank is thought to have approached several firms, among them Lambert Smith Hampton, Savills and Grainger, to manage the project and

will pick a preferred partner within weeks. The appointed agent will attempt to let any vacant units and review breaking up the portfolios.

Lloyds took control of Bovey’s buy-to-let empire, which includes the Veritas portfolio, in 2008. Veritas was among the biggest and most high-profile residential ventures in which HBOS, now owned by Lloyds, took an equity stake through its Uberior joint venture arm.

The bank appointed Knight Frank in April to sell the portfolio, which was valued at around £100m. However, Lloyds is understood to have pulled out of a deal with an unnamed buyer that was lined up before Christmas, after deciding to take a more strategic approach to the homes.

All parties declined to comment.

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Sharecast:

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Lloyds Banking Group plans to create a vehicle to manage thousands of homes that it could then sell or float. The bank, which is heavily exposed to the British residential sector, is thought to be at a fairly advanced stage of setting up a special-purpose vehicle, or "residential asset management platform," the Times reports.

Oh good

Another sign of desperation and denial.

They'll probably sell it of to some shell Private Equity Vehicle lend them the money and then get shot of the bad paper to the Boe.

All good news for the bears IMO. All these moves might reduce nominal falls in house prices but as they continue to pile the burdens and losses to the taxpayer they cannot stop the real terms falls as our currency continues ti lose its purchasing power.

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Hoarding and price fixing.

Here is what a great man had to say about the hoarding and price fixing of corn:

When provisions are high, the people have so much to pay for them that they have little or nothing left to buy clothes with; and when they have little to buy clothes with, there are few clothes sold; and when there are few clothes sold, there are too many to sell, they are very cheap; and when they are very cheap, there cannot be much paid for making them: and that, consequently, the manufacturing working man's wages are reduced, the mills are shut up, business is ruined, and general distress is spread through the country. But when, as now, the working man has the said 25s. left in his pocket, he buys more clothing with it (ay, and other articles of comfort too), and that increases the demand for them, and the greater the demand...makes them rise in price, and the rising price enables the working man to get higher wages and the masters better profits. This, therefore, is the way I prove that high provisions make lower wages, and cheap provisions make higher wages.

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Ha! So Grant "profits yet to materialise" Bovey is going under the hammer.

This looks like an exit strategy for BTL empires gone bust. ;)

Memo to all other banks: First one out the door gets the most money. Then prices fall and you get less. It's time to stampede... :lol:

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The beauty of the corrupt UK insolvency laws is that for instance developers set up each building site as a separate limited liability entity to insulate the parent from risk as much as possible.

There may be a number of reasons why they may want to structure it this way. 1. To stop contagion to the main bank - 2. To raise funds. 3. To reduce visibility. etc

I would guess the main reason being to avoid a firesale in vast amounts of properties they repossess.

They can 'sell' the asset to the company and then sell it o again when they can get better value for it.

Edit. Pretty much what Timm said above.

Edited by Vagabond

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Ha! So Grant "profits yet to materialise" Bovey is going under the hammer.

This looks like an exit strategy for BTL empires gone bust. ;)

Memo to all other banks: First one out the door gets the most money. Then prices fall and you get less. It's time to stampede... :lol:

Yep. Shit just got real.

I wonder if The Wilsons' empire will follow.

That is, if it hasn't already, of course.

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Another sign of desperation and denial.

They'll probably sell it of to some shell Private Equity Vehicle lend them the money and then get shot of the bad paper to the Boe.

All good news for the bears IMO. All these moves might reduce nominal falls in house prices but as they continue to pile the burdens and losses to the taxpayer they cannot stop the real terms falls as our currency continues ti lose its purchasing power.

Yep, totally criminal and a r@pe of free markets and the taxpayer by the banks and government. That said, the currency destruction clusterf4ck the western powers are brewing up a a result is going to make a few of us very well off when it blows. So even though it's not their direct intention to make hard currency king again, fair play to them, I won't be standing in line to string any of them up :lol:

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Estate agents or landlords...?

I thought that too

but overall that's zero sum anyway, still causes massive increase in supply of rooves over peoples' heads, and will either suppress outright prices, or yields, which in turn will have the same effect

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The beauty of the corrupt UK insolvency laws is that for instance developers set up each building site as a separate limited liability entity to insulate the parent from risk as much as possible.

There may be a number of reasons why they may want to structure it this way. 1. To stop contagion to the main bank - 2. To raise funds. 3. To reduce visibility. etc

And the beauty of having money to lend is that when they protect their assets in this way, then you simply shouldnt lend to them without either a bigger amount of equity in the deal, or a higher rate of interest, and sometimes not even then. If you do, then you deserve to lose your money.

Deposit banks should never lend to anyone with this sort of complicated structure, as it is being done to rip off someone somewhere, which means the bank.

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Yep, totally criminal and a r@pe of free markets and the taxpayer by the banks and government. That said, the currency destruction clusterf4ck the western powers are brewing up a a result is going to make a few of us very well off when it blows. So even though it's not their direct intention to make hard currency king again, fair play to them, I won't be standing in line to string any of them up :lol:

What muppets they are. Simply sell each property off as soon as it comes into their possession, I hear there are these things called estate agents that help with this job. The cost of putting this into Special Purpose Vehicles adds only to the losses. Why are they so stupid?

Shame too that ownership of a property doesnt incur a hefty council tax rather than occupation. Then they would be sure to put property onto the market double quick.

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I thought that too

but overall that's zero sum anyway, still causes massive increase in supply of rooves over peoples' heads, and will either suppress outright prices, or yields, which in turn will have the same effect

only if they're empty now.

Is that why the rules have been changed to empty homes?

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Yep, totally criminal and a r@pe of free markets and the taxpayer by the banks and government. That said, the currency destruction clusterf4ck the western powers are brewing up a a result is going to make a few of us very well off when it blows. So even though it's not their direct intention to make hard currency king again, fair play to them, I won't be standing in line to string any of them up :lol:

:lol: Spot on!:lol:

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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