Why lendy RICS valuer are so out of whack?

The Castle was valued at 4.9m but sold for 1.5m. This was a PBL not a DFL so it goes to show that you should never trust these so called RICS “experts”. As the OP mentioned we never seem to see properties undervalued they always turn out to be wildly overvalued. The typical scenario we see time and time again is money lent against a wild overvaluation, loan defaults, a second valuation is commissioned and LY posts an update that says the 2nd valuation is “significantly” less than the money we lent. LY, here’s a suggestion, why not get the guy who did the 2nd valuation to do the 1st valuation? The takeaway is in p2p you can trust nothing and no one, it’s a giant den of iniquity.

Dear thegrumbler, thanks for your post.

What you have stated however is factually untrue, and does not reflect in any way how Lendy undertakes it independent valuations. As you might have read in the recent investor update, we have had constructive discussions with RICS over recent weeks. We are now working proactively with them to help ensure that all their members adhere to the highest standards set by the institution, which we will be updating investors on in due course.

Separately, on matters where Lendy is undertaking legal proceedings against third parties on behalf of investors, we need to be very careful that we do not breach legal privilege, which would almost certainly negatively impact our case, and therefore reduce the chances of a good and fair outcome for our investors. We will covering this issue in our podcast later in the month.

If you DM me with your contact details, we would be more than happy to discuss this matter on the telephone with you, however there is no pressure at all for you to do this.

Kind regards,

Paul 

hello paul64 i could understand the odd default but it has become embarrassing. almost every loan is causing problems with one excuse or another.where/what is the security that would make borrowers even think about paying back on time or even at all.all we here is legal this and legal that which us the lenders have to pay for while you continue to throw tranche after extension after anything else of the same loans.borrower compliance does not seem to be high on your list.

In that very example, it might be that my plan B is a cash savings account I wonder what Ly plan B could be.

When Paul64 refers to legal privilege regarding any possible future action do we think he means:

A/ He can't discuss anything to do with any possible future action due to legal privilege between Lendy and their solicitors
and/or
B/ We shouldn't discuss on this public forum anything to do with possible future action e.g. our views on specific valuations?

If A then sounds reasonable but I'm no solicitor. If B then a bit more worrying due to conflict of interest - i.e. Lendy (and many lenders) clearly would rather less of this sort of thing was discussed.

Personally, from talking and reading from others some of whom are employed in the p2p industry, the problem is not so much RICS but how their agents are instructed. If being instructed by the borrower's broker then there is a problem right there.

I don't use other pick your own property secured pbl or dfl platforms (this one is quite enough). I'd have thought that it might be worth asking are the valuations as off-true on other platforms as on Ly? Is there a significant persistent difference? If yes, what's the reason, eg crazy one off properties that people struggle to value because there's no comparitor; or dodgy valuer who asks the borrower what they want? Etc.

What kind of malpractice are Ly raising with RICS?

At the moment, I'm hoping that Ly are making claims about wrong valuations, which Ly aren't able to reveal...