Land in Rishton (1960999217 - final id) DEFAULT

Surely this isn't going to fill; time to pull?

This raises an interesting question...  What happens if a 'renewal' loan fails to be fully funded? 

Are all of the original investors treated as if there hadn't been a renewal attempt and the loan becomes Unredeemed and Defaulted?  And what happens to the new investors who only put money into the new loan?  Are they treated as if they had invested in a loan that failed to fully fund and get their money back -- plus accrued interest -- as soon as FS give up trying to fund the loan?  I would hope so, as otherwise they've just invested in a defaulting loan.

Has this ever happened before?

It would be a great embarrassment for FS, so I'd expect them to call in underwriters to provide the missing funding.  But the fact that people aren't queueing up to invest £100k chunks into this loan at 17% may say something about how lucrative/expensive underwriting could be.

Maybe what we need to do is set up a crowdfunding website to pool together all of our small investments into a £100k investment and earn 17% for ourselves! 

Since this loan was originally written at the beginning of this year, some important research has been published (dated 25th May 2016) by the Office for National Statistics concerning population growth across England for the next few years. Whilst the research was clearly undertaken and published before the Brexit referendum, Brexit is very unlikely to impact the conclusions on areas with predicted population declines.

The Guardian report states "Barrow-in-Furness in Cumbria is projected to have the biggest fall in population in England, declining by 4.3% to 64,700 by 2024. It is at the head of a list of northern boroughs and districts, including Blackpool, Blackburn, Hyndburn (Accrington, Lancashire) and Richmondshire (North Yorkshire) where the population is expected to shrink."

Rishton is in the Hyndburn council area, and is one of only a handful of areas in England expected to see declines in the local population.  Any large scale development in an area with a declining population is going to need an overwhelming financial justification before development finance will be forthcoming, and some posts on the first page of this thread suggest that the GDV being presented to us appears overly optimistic even before a declining demand for property in the area is factored in.

Blackburn & Hynburn seems to have been a local hotspot for p2p loans with several on FS, AC & TC, and it might imply a reluctance of mainstream financiers to get involved with the more speculative propositions in that particular area.

www.theguardian.com/world/2016/may/25/dramatic-population-increases-forecast-for-london-as-northern-towns-lose-workers

www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationprojections/bulletins/subnationalpopulationprojectionsforengland/2014basedprojections

This research was unfortunately published during the referendum camapign, and didn't receive the media coverage that it deserved.

Has the trend in declining average family size been reversed?  If not, then more housing will be required even with a static population.  While I accept that a 0.5%/year decrease in population wouldn't help the demand for new developments, would it eliminate that demand entirely?  Also, ISTM that people generally prefer newer, more energy efficient, homes to older ones, and that also provides demand for new developments.

By coincidence I happened to walk by this site today and if it's of any interest to anybody I can confirm that nothing has happened to it since the loan started except a bit more grass has grown.

Hmmmmm.  All of what you say makes sense in general mikes1531 .  But this part of East Lancs really has no housing shortage at all.  Just in the next town to Rishton (Great Harwood, location of several other loans with various platforms) which is a fair bit nicer than Rishton and has many more amenities, theres a superb 'new', very small development of houses (20) in a much better location than this one.  Many of these 'new' houses have not sold after something like 5 years - possibly longer now (I've lost count).  Most Hyndburn towns are all but shutting down, with Great Harwood being the one exception, partly because it's just nicer and partly because it's a stone's throw from the Ribble Valley, one of the most desirable areas in the country.  I have watched and noted in the past few years many posters on this forum, including really very experienced property people, making statements along the lines of "everybody knows that property values have been going up everywhere................so how come the value of this [defaulting loan security] seems to have gone down....it's not credible...blah, blah, blah".  During all of that time there have been daily reductions in prices on properties for sale round here, at all levels in the market.  East Lancs hasn't had a property boom, and in consequence a huge part of this area is owned by BTLers.  I was living in a rented house myself in one of the Hyndburn towns - it was a perfectly desirable house on a desirable development really, but it took the owner 2 years to sell it and only because she knocked the price down to a ridiculously low level in the end.  I'd have bought it myself, but it wasn't really a practical location for me in the first place, so I took the opportunity to move to where it made my life easier.  And at least one other lovely house there is still for sale now, having gone on the market before the one I was renting.  It's just how it is round here at the moment.

Well, yes, especially for property owners.  On the other hand, as a tenant, I find I live in what is non-the-less a beautiful area and can afford a really good standard of living for little money by UK standards, and that stone's throw to the Ribble Valley that I mentioned gets me to some really fantastic cocktail bars, coffee bars, restaurants and shops on a nice little train just a few mintutes walk from my house if I don't want to drive the few minutes it would take.  And my regular drive over the hills to my mum's is spectacular and uplifting to say the least.  So there are benefits

On your question about why the developers continue, it also makes me wonder.  The one who developed the ones I mentioned earlier, is waiting till they all sell before cracking on with pulling down the other half of the OXO factory which used to stand there, and developing that.  That same developer turned down a low, but I felt reasonably acceptable offer on another canalside development of theirs a few miles away where a few houses had stood empty for a couple of years.  Were I them, I'd have accepted that offer and moved on to the next thing, because money tied up doing nothing in property that isn't appreciating would be worth less to me than it would be used to get on with something else.  But what do I know?  They ARE fairly local, also large and very experienced, and have a very good name locally, so I have to assume they know what they're doing.  Perhaps when the Northern Powerhouse gets going.....................................