D****n Street, Liverpool

Said in jest I know, but nevertheless raises an issue I've been grappling with. There is something I would like to get off my chest concerning a resigned director of one platform who may still have informal influence over the platform, but have been struggling to frame an approach which would be acceptable on the forum, and wouldn't leave me vulnerable to defamation claims. If what I've said rings any bells, I'd be grateful for a PM conversation to discuss further.   (And for clarity here, I'm NOT talking about MT)

There'd be nothing at all wrong in principle with the practice if valuations were more reliable. 

Bog standard houses in stable neighbourhoods ought to be easier to shift at a reasonable price in a foreclosure sale than top end properties that only sell when the right person comes along, or derelict sites where planning permission to redevelop is being requested, or complex development projects, or commercial property.

I'm beginning to wonder whether I should be moving out of Lendy and FS with their high interest rates and high default rates and into platforms such as THC with lower interest rates and seemingly lower default rates.  The net return might not be that different and the ups and downs might be less severe.

Up for renewal today with new loan number 2446489656 (replacing the current 2 loans on the land). Planning approval has been granted subject to section 106 agreement payments totalling £219330, around half of which must be paid before development commences. Borrowing has increased from £117000 to £260000 for the purpose of "advancing other projects". Land has been sold with contracts exchanged at £831280 however the purchaser hasn't been named so no way to determine if they have sufficient capital or finance in place to complete the sale.

There is really no solid "valuation" of the scheme either, just a short letter from the original valuer suggesting that the new value is (surprise, surprise) more or less exactly the claimed sale price. If the pre-agreed sale doesn't complete for some reason, who knows what another purchaser might be willing to pay.

Probably one of the lower risk FS loans (which says more about the typical FS loan than it does about this one), but not one I'll be moving monies around for. Either all is as we're told, in which case it may repay within a month or so, or else the sale falls through and the true LTV is revealed to be XX% (insert wild guess here).

And here's me thinking this one looked alright. I do wonder if we might getting a little over sceptical these days? Probably not, though who could blame us if we were?

The first thing I'm thinking is that it's got to be fairly easy to set up a sale, grab a pile of P2P cash and then oops, the sale falls through but here, do have the security and good luck selling it.

Thanks for the money now I'm off to the Bahamas.

Oh yes, I'm as sceptical as anyone these days....

It might be worth reiterating that the borrower (or at least the directors behind the borrowing company) already have at least one other loan with FS - The Ne****m park hotel.

I think there would be some severe repercussions for the buyer if they were to pull out after exchange, and it very rarely happens. On that alone, I'm convinced enough.

I do want to do some more research here, but entirely disregarding the £825k 'valuation' £260k doesn't sound ridiculously high for the plot with PP in the worst case.

Edit: This said, I do agree that a proper VR and some info about the purchaser would be very helpful.

a nice chunk to be paid