markdirac
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Post by markdirac on Mar 17, 2017 11:29:17 GMT
What a vague valuation! After 4 pages of waffle, there is a bland finger-in-the-air estimate of "the order of £200k". No calculations, no evidence, no comparables, no justifications, no photographs. But at least we know what the weather was like.
And yet this valuation conforms to Red Book standards. Don't know what that makes me think about Red Book standards.
What confidence level should we ascribe to a valuation of this quality? +/- 10%? +/- 20%? +/- 50%
I do note that, for this LTV of 47.5%, if the valuation were out by even 50%, then the loan would still be secured (exl. interest accrual & fees).
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Mar 17, 2017 11:38:35 GMT
Try complaining to RICS about these "Valuations", they don't want to know. It's all about providing excuses to protect their Members, but, more importantly, their Industry. Can't have the fact that many P2P Loans are awash with dodgy, incompetent "Valuations" can we? RICS and FCA, fine bedfellows, I feel very safe, warm and comfortable that together they are doing their job and looking out for us.  PS: See my Posting under General P2x Discussion. |
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Post by chielamangus on Sept 14, 2017 18:06:39 GMT
For those of you itching to throw some money at a certain loan at 11.00am tomorrow, ponder on the size of the site. Is it 782 sq mtrs as in the application for planning permission, or is it 1569 sq ft (127 sq mtrs) as in the FS info? Or is it something else again, but he does not know what, but its worth £200k according to the valuer? On these figures, the site is worth between £255 and £1372 per sq meter but have no idea which figure is closest. But never mind - throw the money first and think later.
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oldgrumpy
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Post by oldgrumpy on Sept 14, 2017 18:13:20 GMT
FS certainly don't have the expertise to check that details like that are meaningful or have been professionally prepared. FS just believes and reproduces what anyone tells them (or so it seems. What a pity FS staff's own professionalism is under scrutiny, and I don't just mean with respect to valuations. It is becoming more and more difficult to be sure about even the apparently good loans which FS offers.
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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 Sept 15, 2017 1:12:03 GMT
For those of you itching to throw some money at a certain loan at 11.00am tomorrow, ponder on the size of the site. Is it 782 sq mtrs as in the application for planning permission, or is it 1569 sq ft (127 sq mtrs) as in the FS info? Or is it something else again, but he does not know what, but its worth £200k according to the valuer? On these figures, the site is worth between £255 and £1372 per sq meter but have no idea which figure is closest. But never mind - throw the money first and think later. FS particulars say it is 750-800sq mtrs. I cant see the sq ft figure you refer to but its clearly not that as the GF commercial units are 400sqm and the communal area 300sqm. Edit I see the sqft figure is on the original loan so its been corrected on the renewal.
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Post by chielamangus on Sept 15, 2017 7:45:03 GMT
What really appalls me about this loan is the valuation. No mention of the area involved, no comparables given, nothing. Just a figure plucked out of the air with no justification. I have put this valuer on my (growing) blacklist of unreliables
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adrian77
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Post by adrian77 on Sept 15, 2017 8:22:48 GMT
Great posts above - I am in this business and won't be touching this one with a barge-pole
Funny how a lot of FS property loans come in at 70% or just under....
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rs
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Post by rs on Sept 15, 2017 9:27:39 GMT
Great posts above - I am in this business and won't be touching this one with a barge-pole Funny how a lot of FS property loans come in at 70% or just under.... yes but this will fund 100% in a minute surprisingly even though no one will be going near this one!
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Post by mrclondon on Sept 15, 2017 14:40:06 GMT
[Admin Note]
I've just merged the recent posts on this loan with the two from when it was first offered in March, which were equally as sceptic.
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mikes1531
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Post by mikes1531 on Sept 15, 2017 17:40:27 GMT
Funny how a lot of FS property loans come in at 70% or just under.... Is that really unexpected? Client comes to FS wanting to borrow as much as they can against their property. FS obtain a valuation, multiply the value by 0.7, and -- hey, presto -- a 70% LTV loan is offered to investors.
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bugs4me
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Post by bugs4me on Sept 15, 2017 21:54:56 GMT
Funny how a lot of FS property loans come in at 70% or just under.... Is that really unexpected? Client comes to FS wanting to borrow as much as they can against their property. FS obtain a valuation, multiply the value by 0.7, and -- hey, presto -- a 70% LTV loan is offered to investors. - it's not just FS that are 'guilty' of this - I suspect many P2P platforms adopt the same 'standards'. Personally I'm moving out of property in the P2P marketplace until some reality creeps into those generous platform folks brains that seem to show a lack of respect for lender's money. The forum is littered with many examples of what could be considered reckless lending and I do not buy into the VR being the be all and end all as to whether an investment is worthwhile from a risk point of view. The background of the borrower is equally as important IMO. So when it's possible to carry out in-depth DD..... say no more - although I would suggest that if the platforms themselves were loaning their own money they may possibly decline. Whilst obtaining the best result in the event of a default is in everyone's interests, the failure of a platform to act in a timely manner is of concern. Are they simply trying to prop up their default statistics kicking the infamous can down the road by goodness knows how many months/years? Unfortunately the number of P2P lenders reading this forum is in the minority so I expect sooner or later there will be a 'blow up' and once the s**t hits the fan it will be contagious.
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Post by chielamangus on Sept 16, 2017 11:35:42 GMT
... The background of the borrower is equally as important IMO. Absolutely, but it seems to be given no credence by most of the platforms.
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oldgrumpy
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Post by oldgrumpy on Sept 16, 2017 11:41:23 GMT
Better look more closely at the background of some of the platform directors! Start putting a few bits about them up here regarding their limited credentials. They don't like it up'em, you know.
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r1200gs
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Post by r1200gs on Sept 16, 2017 12:11:44 GMT
... The background of the borrower is equally as important IMO. Absolutely, but it seems to be given no credence by most of the platforms. I bet Lendy pay a bit more heed in future! They were warned, but "only the security matters". Actually no, not when the borrower is out to shaft you.
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Post by chielamangus on Sept 16, 2017 13:39:35 GMT
Better look more closely at the background of some of the platform directors! Start putting a few bits about them up here regarding their limited credentials. They don't like it up'em, you know. OK, oldgrumpy , you take the first pot shot! (Bearing in mind all the rules surrounding this forum and the fear of those-who-must-be-obeyed of any identification of anybody or anything)
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