m2btj
Member of DD Central
Posts: 626
Likes: 749
|
Post by m2btj on Dec 19, 2017 8:55:22 GMT
My other bone of contention is valuations by surveyors based hundreds of miles from the property they have been commissioned to value. I can think of a firm of valuers based in Lytham St. Annes valuing a development in Plymouth some 320 miles away. Local valuers understand the local market far better than someone hired to conduct a valuation in an area they are unfamiliar with. I'm sure we end up with some form of cobbled desktop valuation which is incapable of any stress test.
|
|
eeyore
Member of DD Central
Posts: 754
Likes: 750
|
Post by eeyore on Dec 19, 2017 10:12:59 GMT
That said, I could probably find a VR report on each platform that I believe is simply not fit for purpose. The only valuation that matters is what an asset will likely achieve in the event of a firesale by receivers. Agreed! I can recall a recent valuation on another P2P platform presented to back-up the proposal for a loan for the development of a design for high-speed transportation for wealthy individuals; the VR was on a prototype offered as security for the loan and was commissioned by the borrower. Quite reasonably, the valuer pointed out the apparent lack of a proven market niche for the proposed design and presented examples of similar products which had failed and the resultant difficulty of arriving at a valuation for an innovative design. But the valuer then went on to give a value in £000,000s for the prototype, with the proviso of "if such a market exists". This is useless to us as lenders because we're not interested in what a valuation is "if the market exists", what we want to know is the value if the market does NOT exist, since the borrower will have defaulted because his design has not found a market!
|
|
sirius
Member of DD Central
Posts: 161
Likes: 141
|
Post by sirius on Dec 19, 2017 12:53:30 GMT
I urge you all to take a look at the 'valuation' for the' two pubs into a hotel' on FS as the 'best' VR I have read since I started P2P a year ago. (I was not interested in investing as it is a second charge, but I do like to read fiction).
The valuer gives absolutely nothing tangible, not even comparables, as to how they came to the valuation.
"We are of the opinion due to location and potential of projected cleared site, taking account of the present economic climate and factors (sic) as outlined above, we are of the opinion that the value be to the order of £550,000".
That is it! Other than 5 pages of the usual padding and waffle.
A classic, even by FS standards!
Edit: The valuer has had 45 years 'experience', so I guess he will be looking to retire at any moment!
|
|
m2btj
Member of DD Central
Posts: 626
Likes: 749
|
Post by m2btj on Dec 20, 2017 8:41:44 GMT
I urge you all to take a look at the 'valuation' for the' two pubs into a hotel' on FS as the 'best' VR I have read since I started P2P a year ago. (I was not interested in investing as it is a second charge, but I do like to read fiction). The valuer gives absolutely nothing tangible, not even comparables, as to how they came to the valuation. "We are of the opinion due to location and potential of projected cleared site, taking account of the present economic climate and factors (sic) as outlined above, we are of the opinion that the value be to the order of £550,000". That is it! Other than 5 pages of the usual padding and waffle. A classic, even by FS standards! Edit: The valuer has had 45 years 'experience', so I guess he will be looking to retire at any moment! Looks like the sort of valuation that could see hard earned investor cash flushed down the toilet...100% LAV!
|
|