ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on May 31, 2022 20:54:15 GMT
A missive received from one of my P2P Platforms where an asset was "Professionally Valued". But turned out to be criminally overvalued. As usual. Wottasurprise .....
"As regards the original valuation in relation to this loan and any claim against the valuer, while the bankruptcy proceedings were ongoing, we entered into a standstill agreement with the valuer in 2020 and obtained a retrospective valuation which opinion valued the property at £XX Million. We understand that the valuer is now in liquidation and it is not known whether there is a notified insurer. After seeking legal input and having considered the difficulties of pursuing such a claim and significant costs risk without certainty of success we will not be taking the matter any further."
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Post by overthehill on May 31, 2022 21:22:38 GMT
I've noticed a few valuations recently on the popular P2P platforms in this forum that are just suspect, speculative or optimistic and once the LTV starts hitting 70% and over it's asking for trouble in a price downturn and there are always downturns and upturns. I prefer low unit developments as it's much easier to use 'sold prices' in the same postcode as a comparison. If the unit valuation is 40/50k more than any other property has sold for in the last 2 years, I avoid it. It's much easier to spot bad valuations on bridging loans. I struggle with commercial valuations.
One of the golden property rules is never purchase or invest in the most expensive property in the street to make money, better to buy the cheapest. Cheapest is pulled up and the most expensive is pulled down in the best generalisation you've heard this week.
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Post by c64 on Jun 1, 2022 8:13:02 GMT
To be fair, they did a valuation, and they got paid for it.
I dread to think how an "amateur" valuer would have done, although they would have been worth every penny.
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Steerpike
Member of DD Central
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Post by Steerpike on Jun 1, 2022 8:15:43 GMT
A missive received from one of my P2P Platforms where an asset was "Professionally Valued". But turned out to be criminally overvalued. As usual. Wottasurprise .....
"As regards the original valuation in relation to this loan and any claim against the valuer, while the bankruptcy proceedings were ongoing, we entered into a standstill agreement with the valuer in 2020 and obtained a retrospective valuation which opinion valued the property at £XX Million. We understand that the valuer is now in liquidation and it is not known whether there is a notified insurer. After seeking legal input and having considered the difficulties of pursuing such a claim and significant costs risk without certainty of success we will not be taking the matter any further."A platform that fails to ensure that the valuer has adequate insurance cover is negligent.
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69m
Member of DD Central
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Post by 69m on Jun 1, 2022 21:19:45 GMT
A missive received from one of my P2P Platforms where an asset was "Professionally Valued". But turned out to be criminally overvalued. As usual. Wottasurprise .....
"As regards the original valuation in relation to this loan and any claim against the valuer, while the bankruptcy proceedings were ongoing, we entered into a standstill agreement with the valuer in 2020 and obtained a retrospective valuation which opinion valued the property at £XX Million. We understand that the valuer is now in liquidation and it is not known whether there is a notified insurer. After seeking legal input and having considered the difficulties of pursuing such a claim and significant costs risk without certainty of success we will not be taking the matter any further."Ah, an unrealistic valuation combined with a platform that apparently gave up trying to recover lenders' cash (because it was a bit of a faff). A P2P scenario which is far too common. RICS publishes a fairly short list of approved indemnity insurance underwriters. Therefore, if the platform in question had really wanted to establish whether or not there was insurance in place, then the task wouldn't have been especially onerous. RICS might even have assisted them given that one of its (presumably) member firms went into liquidation.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 1, 2022 21:25:50 GMT
A missive received from one of my P2P Platforms where an asset was "Professionally Valued". But turned out to be criminally overvalued. As usual. Wottasurprise .....
"As regards the original valuation in relation to this loan and any claim against the valuer, while the bankruptcy proceedings were ongoing, we entered into a standstill agreement with the valuer in 2020 and obtained a retrospective valuation which opinion valued the property at £XX Million. We understand that the valuer is now in liquidation and it is not known whether there is a notified insurer. After seeking legal input and having considered the difficulties of pursuing such a claim and significant costs risk without certainty of success we will not be taking the matter any further."Ah, an unrealistic valuation combined with a platform that apparently gave up trying to recover lenders' cash (because it was a bit of a faff). A P2P scenario which is far too common. RICS publishes a fairly short list of approved indemnity insurance underwriters. Therefore, if the platform in question had really wanted to establish whether or not there was insurance in place, then the task wouldn't have been especially onerous. RICS might even have assisted them given that one of its (presumably) member firms went into liquidation. Erm, not sure you could really say they have given up trying to recover lenders cash ... theyve spent huge sums & time on pursuing the borrowers ... got a copy of the 2014 list? I suspect relevant questions have been asked
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