tx
Member of DD Central
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Post by tx on Apr 6, 2018 18:02:12 GMT
So did the investor only got 66% capital back so far? Or is Lendy taking the hit? There was a vote the other day - £2.1m offer on the house, against valuation of £4.25m. £1.97m repaid, leaving £1m to chase from the borrower. So the lenders are taking the hit at the moment? This seems to be a classic case (in my opinion) that using GDV as project value and lending 70% against that is inappropriate. When things goes wrong, like this one, it will never achieve the GDV! 90 Day distress sales price seem the most appropriate value for calculating LTV.
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sarahcount
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Post by sarahcount on Apr 6, 2018 19:31:03 GMT
There was a vote the other day - £2.1m offer on the house, against valuation of £4.25m. £1.97m repaid, leaving £1m to chase from the borrower. So the lenders are taking the hit at the moment? This seems to be a classic case (in my opinion) that using GDV as project value and lending 70% against that is inappropriate. When things goes wrong, like this one, it will never achieve the GDV! 90 Day distress sales price seem the most appropriate value for calculating LTV. I agree with your comments about GDV but in the case of PBL081 things were even worse as the loan came on the platform as a newly built house that just needed a few minor modifications for a prospective buyer. Then it all went wrong and the valuation was proved to be miles out. I would like to be able to say that was all in the past and new loans are much better. I'd like to say that but not sure if I can.
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Post by df on Apr 6, 2018 20:15:41 GMT
There was a vote the other day - £2.1m offer on the house, against valuation of £4.25m. £1.97m repaid, leaving £1m to chase from the borrower. So the lenders are taking the hit at the moment? This seems to be a classic case (in my opinion) that using GDV as project value and lending 70% against that is inappropriate. When things goes wrong, like this one, it will never achieve the GDV! 90 Day distress sales price seem the most appropriate value for calculating LTV. I think it is misleading when they use GDV as headline value of the asset. It is good to be mentioned, but the headline LTV should be fire sale value IMO.
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adrianc
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Post by adrianc on Apr 7, 2018 7:27:59 GMT
There was a vote the other day - £2.1m offer on the house, against valuation of £4.25m. £1.97m repaid, leaving £1m to chase from the borrower. So the lenders are taking the hit at the moment? This seems to be a classic case (in my opinion) that using GDV as project value and lending 70% against that is inappropriate. When things goes wrong, like this one, it will never achieve the GDV! 90 Day distress sales price seem the most appropriate value for calculating LTV. It was many things, but a stalled part-project wasn't among them.
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