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Post by skint4achange on Dec 5, 2017 17:03:27 GMT
This is not sitting right with me. The fact that the property has not really been valued but rather the vendor has put it on the market for a value (That may or may not have been a genuine valuation) and the borrower has purchased it with a deferred payment to the vendor (Who may or may not be related to the borrower).
I can see a vendor (That may or may not be the borrower) offloading an overvalued piece of land to Lendy. If they wanted £1m for the land, what better way to get that money without having to try too hard? Make up a new company, sell your wasteland to that company and then let it default on the loan (having used a valuation that has been inflated by 50% by someone)!
Steering well clear of this one I am afraid (I may be wrong about how this is going to go and I hope I am, but something is not right).
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keith
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Post by keith on Dec 5, 2017 20:39:32 GMT
I wish there was a market where I could short some of these loans.........
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Post by skint4achange on Dec 5, 2017 20:46:17 GMT
I wish there was a market where I could short some of these loans......... Playing pass the parcel is good..............................Right up until the music stops and you are left hold a rather expensive parcel of poo
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keith
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Post by keith on Dec 5, 2017 20:54:09 GMT
Agree. I was referring to a market where I could short this without holding the asset and having to play pass the poo parcel and hope for liquidity at the end  |
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Post by loftankerman on Dec 6, 2017 9:13:25 GMT
Ah? A liquid poo parcel. Good thinking, there'd probably be a run on that.
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jfm
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Post by jfm on Dec 23, 2017 9:41:13 GMT
Is there any evidence of connection between vendor and purchaser?
As for the vendor's motivation, perhaps he prefers some cash now rather than wait for another purchaser to surface in future. If the deferred payment isn't made he can void the contract and possibly sue for inconvenience.
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zlb
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Post by zlb on Dec 23, 2017 11:10:13 GMT
There was an update issued yesterday (my bold): "This loan is now credit approved and property and legal due diligence will be completed before the loan funds are advanced to complete the acquisition of the security property. The valuer has reviewed the Report on Title and whilst the Open Market Value of the property has been confirmed at £1.5m, the value, on a restricted 90 day marketing period basis has reduced from £1.35m to £1m. We have requested a full explanation for this from the valuer. We are happy to proceed with the loan as outlined, on the basis the Open Market Value has been confirmed at £1.5m." It seems unlikely that a 90-day value could drop by more than 25% without it affecting the unrestricted MV, but it could just reflect the valuers thoughts of a cooling market and the gap that is increasing between the price someone may be prepared to pay if they want it and the price someone will possibly pay to take it off your hands. For me, it's another reason to avoid. Just read this also ... the valuer appears to be being realistic, which is good. It's industrial which I presume narrows the number of purchasers at quick sale. It seems in reasonable condition. I suppose on face value it means that if the loan defaults one will be hanging around for a long drawn out sale process (as with others). L are prepared to take a risk here that seems to be somewhat outside of remit - they will launch the loan whilst they are waiting to hear about the £1m 90 day reasons. This makes the 70%LTV more than the 90day valuation - has that happened before? There's no indication of the PF being used on the number of very overdue defaulted loans, so this raises the risk level. So if defaults, would need a buyer who will pay 70% of £1.5m. Still, the main question for me, is the relationship between the borrower and the person they bought the site from. The VR appears to have no reference to other/similar properties - although when I open it, there are several blank pages at the end.
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bloodycat
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Post by bloodycat on Dec 24, 2017 14:18:31 GMT
The 'blank' pages at the end are just a copy of the valuation instructions.
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webwizard
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Post by webwizard on Dec 25, 2017 6:15:53 GMT
The VR appears to have no reference to other/similar properties - although when I open it, there are several blank pages at the end. The pages are not actually blank. If you open the PDF document and then drag your cursor across all the blank pages you will highlight all the text that is coloured white. Then press CTRL-C and paste into a blank word document. Now you can read all the text.
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bloodycat
Member of DD Central
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Post by bloodycat on Dec 25, 2017 15:49:48 GMT
Alternatively, in Adobe reader just click on the 'blank' bits with the select tool and press delete to erase the white rectangles.
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trevor
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Post by trevor on Dec 27, 2017 11:27:47 GMT
I'm going to be very interested to see if all of this loan is allocated or some ends up on the SM. For me this is a very obvious loan to barge pole. I have experience of being part of a team involved in moving a manufacturing business and trying to find an ideal site that meets your requirements is very difficult. I don't believe the 90 day valuation so for me the loan is well over 100% LTV.
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Post by supernumerary on Dec 28, 2017 17:03:51 GMT
Having received BIG billing with five days advance notice, this loan has NOT gone live as advertised, on the 27th Dec 2017...  No further update from Lendy! Could it be that this loan will be quietly dropped, with no further mention?  |
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trevor
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Post by trevor on Dec 31, 2017 21:13:34 GMT
Zilch on the SM. I shall follow this one with interest but from the sidelines.
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Post by picanto on Jan 3, 2018 10:20:50 GMT
£150k now available on the secondary market. Am I right in saying that they were £150k short on the amount they need for the loan to be drawndown? If that is the case then I am extremely surprised, it was in the pipeline for a very long time and only a £1.05 million loan is not that much compared to others on the platform. Is this a sign that people aren't investing their funds into Lendy?
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SteveT
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Post by SteveT on Jan 3, 2018 10:36:12 GMT
£150k now available on the secondary market. Am I right in saying that they were £150k short on the amount they need for the loan to be drawndown? If that is the case then I am extremely surprised, it was in the pipeline for a very long time and only a £1.05 million loan is not that much compared to others on the platform. Is this a sign that people aren't investing their funds into Lendy? More likely that's £150k of accidentally pre-funded orders that haven't been paid for.
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