jlend
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Post by jlend on Aug 8, 2017 10:11:25 GMT
Morning Ed, I'm convinced that Scotland will have better/safer loans to offer Team MT than this one, please please pull this threat to our collective 'purses'. J, in Central Scotland, I feel a bit sorry for MT over this one. The platform's awash in cash, and must be seeing sizable withdrawals, after the AE loans all repaid - and the cupboard is bare. There's only Birkenhead and the odd snidge of Plymouth - both of which, we're all replete with. Then we look at the pipeline, and turn our noses up... Plus another 2 million to be repaid over the next couple of weeks with Edinburgh and a couple of lambo cars if I have read it correctly
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Aug 8, 2017 10:18:18 GMT
Thanks for DD on this guys. Interesting to see Ed's respomse, and there is the new team member with a focus on prop, good test for him. AE cash firmly in pocket. Bobo on hols My eyes often play tricks on me and at first glance I read this as "new team member with focus on poop" - and I thought, " Well, they've got that right!"
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Aug 8, 2017 10:21:18 GMT
I feel a bit sorry for MT over this one. The platform's awash in cash, and must be seeing sizable withdrawals, after the AE loans all repaid - and the cupboard is bare. There's only Birkenhead and the odd snidge of Plymouth - both of which, we're all replete with. Then we look at the pipeline, and turn our noses up... Plus another 2 million to be repaid over the next couple of weeks with Edinburgh and a couple of lambo cars if I have read it correctly No excuse whatsoever for taking your eye off the ball though is it? Allegedly.
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robski
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Post by robski on Aug 8, 2017 10:22:40 GMT
I'm sad to say that my confidence and trust in MT has already been damaged as a result of this debacle. Previously I have trusted the platform to the extent of even leaving my money invested up until the end of the loan and then rolling over etc because I trusted all of the in-house DD and the platform's overall competence. Even when I was caught unawares by Birkenhead I still felt reassured by the platform's reputation and had confidence all would be resolved very satisfactorily. This has changed how I think altogether. MT is currently my biggest platform but I think that is about to change. Have we heard what Ed has to say yet? I haven't seen anything. I think realistically hes got 45 minutes. If he lets this go live with no comment back here then he will for sure lose some of the good feeling the platform has on these boards. In the real world its sometimes hard to cover all the bases, lets face it some people will look to pull the wool, assuming they wont get caught and happy to move on if they do. Its quite possible some of the "facts" on this thread are new to Ed and he is actively looking into ramifications. Websites for example are often put live by mistake, but if enough negative evidence is forthcoming then eventually you vote with your feet. I have already reduced my planned investment by a factor of 15, as it is now I am looking to make a token investment, but even that will probably not happen unless we see some correspondence soon(ish)
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robski
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Post by robski on Aug 8, 2017 10:25:33 GMT
MoneyThing Putting to one side the questions surrounding the borrower, there is one big reason why you shouldn't proceed with this loan The property was marketed between 21 Dec 2016 & 10 July 2017 at £500k; it didn't sell. It shows that the valuation is frankly rubbish, but also shows that the borrower has little intention of proceeding with the project and has been actively trying to get rid of the property Today you stand at a crossroad... please don't proceed with loan It is Scotland though, with their seemingly wierd pricing that means you seem to offer 40% over the top of the "price"
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Post by Butch Cassidy on Aug 8, 2017 10:26:51 GMT
I'm sad to say that my confidence and trust in MT has already been damaged as a result of this debacle. Previously I have trusted the platform to the extent of even leaving my money invested up until the end of the loan and then rolling over etc because I trusted all of the in-house DD and the platform's overall competence. Even when I was caught unawares by Birkenhead I still felt reassured by the platform's reputation and had confidence all would be resolved very satisfactorily. This has changed how I think altogether. MT is currently my biggest platform but I think that is about to change. Have we heard what Ed has to say yet? I haven't seen anything. Give MT a chance to respond; this thread highlights both the strengths & weakness of P2P - great collective DD can unearth things no platform could or might have missed (both good & bad) but also can create mass hysteria & panic selling (Thanks to those who have enabled me to reinvest much of my AE repayments )
Whilst I agree reputation can be fragile & easily lost MT have yet to make clear their response to the evidence uncovered by the diligent members of this forum, for which we all benefit, but no one has lost a penny on this proposed loan yet & if you are uncertain hold off investing until it's future becomes clear. I trust the judgement of MT & it's management but also pick & chose which loans I invest in & nothing I have seen so far has changed my opinion on either.
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robski
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Post by robski on Aug 8, 2017 10:40:09 GMT
It is Scotland though, with their seemingly wierd pricing that means you seem to offer 40% over the top of the "price" True, but regardless, it would seem there were no offers (or bids, or whatever they call it) over the 500k guide I think its a little too far to go to that, when you consider this from the MT updates, "[Update 30/06/2017] – Valuation report now received (higher than expected). Considering a slightly different structure." If you received that valuation and someone just offered you £800k, would you take it? I guess it depends on if you think the valuer was correct or not!
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dovap
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Post by dovap on Aug 8, 2017 10:42:12 GMT
maybe all the students learning English and goldmining put potential buyers off ?
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SteveT
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Post by SteveT on Aug 8, 2017 10:42:41 GMT
It is Scotland though, with their seemingly wierd pricing that means you seem to offer 40% over the top of the "price" True, but regardless, it would seem there were no offers (or bids, or whatever they call it) over the 500k guide Or just none that the current owners thought high enough to accept. The guide price is pretty meaningless under the Scottish system. (crossed with robski)
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robski
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Post by robski on Aug 8, 2017 10:53:23 GMT
I think its a little too far to go to that, when you consider this from the MT updates, "[Update 30/06/2017] – Valuation report now received (higher than expected). Considering a slightly different structure." If you received that valuation and someone just offered you £800k, would you take it? I guess it depends on if you think the valuer was correct or not! There are a lot of Hypertheticals there! We've already covered the issues surrounding the Surveyor and the location, but that VR was for the purpose of the loan, not the sale which was presumably valued (or est. the guide) by the agents selling it (based in Paisley); so I'm not buying that the Borrower withdrew the property because he undervalued it Also, if was was such a good deal (£700k off the supposed MV!), then surely somebody would have snapped it up in the 7 months it was listed Sorry but I think your just not getting the Scottish system Its more like a confidential non binding auction than a buy it now, forget the listing price its practically irrelevant, it could have been 50p for all its guide worth. You have no way of knowing (like the rest of us) if any offers were made, and if they were how much for. The vendors could have been looking for a speculative £1M all we can do is guess.
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Post by MoneyThing on Aug 8, 2017 10:57:07 GMT
Morning, My apologies for the delay in posting.
We have been spending quite considerable time since the start of this thread, reviewing our file on this loan and also speaking to the borrower, valuer & solicitors in case we have missed something. To be fair, we are still happy to present this loan on the platform and none of our follow up enquiries have surfaced anything which causes concern (I was quite prepared to pull the loan had there been anything adverse we had missed). In answer to the main points in this thread:
1 – Our borrower purchased an option at the end of 2015 when there was just the planning in place for the nursing home. The borrower subsequently purchased the property in May 2016 for £580,000 once revised planning was secured. (The sale listings which show offers over £500,000 are old cached versions pre-planning). 2 – The exit is from the development of the site (by us or another lender), and not the sale of the individual units. 3 – There is no issue with selling the ground rents for this type of property in Scotland whereby the units are sold as long leasehold on a commercial basis. (As there was a public holiday in Scotland yesterday, we were waiting to speak to our solicitor this morning to confirm). 4 – Whilst the RICS valuer’s firm is based in the south of England, they cover the whole country and have a good deal of experience valuing property all over Scotland. 5 – The proposed development retains the listed building. 6 – We are using a Scottish agent with respect to the legals.
7 - Side letter from the valuer attached to the listing.
8 - Website on the school was put up there for internal purposes and the URL had not been advertised for public access. This has since been taken down.
Kind regards,
Ed
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m2btj
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Post by m2btj on Aug 8, 2017 11:07:15 GMT
This loan is 20% funded in just 5mins! Plenty of bid limit loans of £2500 taking place just now.
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robski
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Post by robski on Aug 8, 2017 11:12:16 GMT
Morning, My apologies for the delay in posting. We have been spending quite considerable time since the start of this thread, reviewing our file on this loan and also speaking to the borrower, valuer & solicitors in case we have missed something. To be fair, we are still happy to present this loan on the platform and none of our follow up enquiries have surfaced anything which causes concern (I was quite prepared to pull the loan had there been anything adverse we had missed). In answer to the main points in this thread: 1 – Our borrower purchased an option at the end of 2015 when there was just the planning in place for the nursing home. The borrower subsequently purchased the property in May 2016 for £580,000 once revised planning was secured. (The sale listings which show offers over £500,000 are old cached versions pre-planning).I owe you an apology - the Cache was date Jul 2017, listing updated December 2016 so all signs were that it was online between those times. On further inspection (after your post) I note that Brochure is dated February 2015 Sorry Ed - my mistake Kudos for holding you hand up, I am sure your numerous valuable posts mean there is plenty of forgiveness for one minor slip up
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Post by mrclondon on Aug 8, 2017 11:12:52 GMT
So it has been valued on a residual value basis from the sale of student rooms (ref: valuer side letter now attached to loan listing), not on what a site of that size (believed to be just over an acre) might fetch on the open market.
I don't have the confidence that the language school is a viable concept, and the exit from this loan is convincing someone to lend development funds to develop the language school ... which means convinicing someone the concept of selling rooms on a leasehold basis in Scotland is viable. Failing which the plot will have to be sold for some other use.
I don't have the confidence that the plot could be sold for over £500k in a timely manner, so I will not be lending on this loan.
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Post by sannytwist on Aug 8, 2017 11:22:30 GMT
I don't have a problem not taking any part of this loan either, considering the issues that was discussed at the start of this thread. More % for you guys who want to pump money in this
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