stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jan 5, 2018 22:20:02 GMT
Dodged this one as well.
Reasons. Valuation assumptions are not known to be incorrect as the freehold is sold, or so it seems. No definitive statements about the holders of the 8% debenture and where they rank nor where the money is and what it will be used for. No calculation backwards from gdv figure in the report. No statement about spv/ borrower skin in the game that is definitive.
What could possibly go wrong?
Hopefully these questions could be dealt with before T1 development money is requested. S
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jjc
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Post by jjc on Feb 22, 2018 17:09:34 GMT
MoneyThing, the updated VR for the 2nd tranche of this development (going live tomorrow) mentions "Works have now commenced on site and a monitoring report has been provided to you in respect of progress with the development and expenditure."Will this monitoring report (& others issued on other loans) be made available to lenders, or will we have access only to the (maybe 2 line) result indicated in the VR updates? Or will your decision be taken case-by-case (in which event may we know what your criteria for deciding this will be)? I would imagine this might be an important point for many lenders.
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Jeepers
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Post by Jeepers on Feb 25, 2018 21:44:41 GMT
As soon as i saw the valuation report, I dismissed this loan.
The valuer is totally incompetent. Same valuer who valued a castle on LY at £4.9m which turned out to be worth £1.5m!
Dismiss any valuations from K***** ******, not worth the paper they're written on.
MOD COMMENT: I've just obscured a name where a serious accusation seems to have been made. I'm going to assume you don't want to fight the truth of this in court tho. Please avoid this sort of thing.
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copacetic
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Post by copacetic on Feb 25, 2018 23:13:35 GMT
I didn't realise the valuer on this loan and Lendy's castle were the same until I saw this post. I didn't invest in the castle and didn't like this one either for various reasons. While I agree that leveling accusations at a valuer could end up in court there is a great opportunity for a thread containing factual information linking particular valuers to loans that failed to recover at or near the restricted 90 day market value. e.g. Valuer | Firm | Platform | Loan | Market value
| 90 day value
| Actual sale value
| Other loans valued by the same valuer
| P*** W******* | K***** M***** | Lendy | PBL155 | £4,900,000
| £3,500,000 | £1,500,000 | MT-MTBC888, ...
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If platforms were able to see this they might avoid particular valuers and valuers themselves would see the risk of losing business for 'optimistic' valuations. P2P perhaps has an advantage over high street lenders in this respect as the banks may not share this information about their defaults with competitors. Of course this isn't to say that this loan will default but it's good to have knowledge of how other properties valued by the same person did in recovery when you're reading their valuation report.
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hazellend
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Post by hazellend on Feb 25, 2018 23:18:18 GMT
I would also prefer MT to avoid Using Crappy Messy for future valuations.
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dovap
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Post by dovap on Feb 25, 2018 23:51:50 GMT
not just the valuation but the ongoing monitoring in the hands of those who so covered themselves in glory in the Welsh castle. interesting coincidence of connected parties between the two loans - makes you wonder
another that's going to need lubing up with cashback innit
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oik
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Post by oik on Feb 26, 2018 12:22:26 GMT
As soon as i saw the valuation report, I dismissed this loan. I was happy enough with the original valuation of £800k for this site with the benefit of planning, regardless of the valuer. I was less sanguine when I saw how the valuation had suddenly been uplifted by 43% to £1.14m in order to justify a 43% increase in the loan. For a jump of that kind I want to see detail beyond that they've done some sort of drawings and had bit of a sweep up. I'd like a solid explanation of why a buyer might now pay 43% more for this bit of land than they would have done six weeks ago, as so far I'm not convinced.
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Post by mrclondon on Feb 26, 2018 12:26:25 GMT
In addition to cooling_dude 's elloquently agrued post, it is worth remembering that a different firm of surveyors engaged by AC valued the apartments part of the "Large Fortified House" marginally higher than Lendy's valuer did. A firesale realisation of a unique one off asset is likely to realise (after costs) 40% to 60% of the open market value given in a RICS red book valuation, and perhaps even less if its based on a residual land value. Lending at 70% LTV is pretty much guaranteeing a loss on default, apart from on mass market residential property, or other mass market asset (e.g. cars). In most cases blaming the valuer is futile, they are carrying out the instructions given to them. Yes, they may be being influenced by the platform/borrower to some extent to produce the "right answer", but personally I feel this is on the margins and might account for a 10% or 20% over valuation of OMV, but not a 100% plus over valuation.
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ptr120
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Post by ptr120 on Feb 28, 2018 13:37:31 GMT
Cashback now added to this new loan advance.
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Post by Badly Drawn Stickman on Feb 28, 2018 13:49:52 GMT
Cashback now added to this new loan advance. It was only a matter of time. I suspect a bit like the cashback on the other unfilled loan, it will make precious little difference in the current climate. Maybe its time for a bit of 'out of the box' thinking by moneything. A loyalty card scheme type arrangement giving buyers into these unpopular loans extra dibs on the 'good stuff'.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Feb 28, 2018 13:55:31 GMT
Cashback now added to this new loan advance. It was only a matter of time. I suspect a bit like the cashback on the other unfilled loan, it will make precious little difference in the current climate. Maybe its time for a bit of 'out of the box' thinking by moneything. A loyalty card scheme type arrangement giving buyers into these unpopular loans extra dibs on the 'good stuff'. Dunno about that, I'd have thought some very basic "inside the box" thinking, such as simply ensuring VRs & LTVs were reasonably accurate, honest & trustworthy would do absolute wonders for filling Loans? Which of course means more realistic (lower) relevant amounts loaned to Borrowers. Wottashame for them.
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Post by Badly Drawn Stickman on Feb 28, 2018 14:04:52 GMT
It was only a matter of time. I suspect a bit like the cashback on the other unfilled loan, it will make precious little difference in the current climate. Maybe its time for a bit of 'out of the box' thinking by moneything. A loyalty card scheme type arrangement giving buyers into these unpopular loans extra dibs on the 'good stuff'. Dunno about that, I'd have thought some very basic "inside the box" thinking, such as simply ensuring VRs & LTVs were reasonably accurate, honest & trustworthy would do absolute wonders for filling Loans? Which of course means more realistic (lower) relevant amounts loaned to Borrowers. Wottashame for them. And there was me thinking the suggestion that there may actually be 'good stuff' was the controversial bit.
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jlend
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Post by jlend on Feb 28, 2018 14:05:26 GMT
It was only a matter of time. I suspect a bit like the cashback on the other unfilled loan, it will make precious little difference in the current climate. Maybe its time for a bit of 'out of the box' thinking by moneything. A loyalty card scheme type arrangement giving buyers into these unpopular loans extra dibs on the 'good stuff'. Dunno about that, I'd have thought some very basic "inside the box" thinking, such as simply ensuring VRs & LTVs were reasonably accurate, honest & trustworthy would do absolute wonders for filling Loans? Which of course means more realistic (lower) relevant amounts loaned to Borrowers. Wottashame for them. The following loans being paid back would also help as these seem to be dragging on now after some positive updates previously about payment - Prestbury - Self Storage - Bridging loan with the shortfall
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Jeepers
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Post by Jeepers on Mar 3, 2018 18:42:44 GMT
Why are idiots people putting money in the first tranche ?
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elliotn
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Post by elliotn on Mar 4, 2018 3:38:30 GMT
Why are idiots people putting money in the first tranche ? One reason might be the queue is smaller with a ready sales market so capital access in a fast changing p2p environment might be one reason. Perhaps they price liquidity above being locked in to a slow filling tranche that will be followed by a huge flip as soon as the 1% cash back is paid that may lock you in in for term. Pure conjecture on my part, of course - I have a hold to term amount in T2 and it was those buyers that you refer to that allowed me to do so. Also, perhaps it's not necessary to suggest investors with different lending criteria to you are idiots, there are some on here that consider cash back hunters the same way.
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