SteveT
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Post by SteveT on May 16, 2017 10:13:38 GMT
(Mod hat on)
Threads merged and loan ID added to thread title, as requested
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dandy
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Post by dandy on May 16, 2017 10:23:45 GMT
Has the dodgy dealings of this Borrower actually had any effect? If the valuation was ~ £2.8m (for a £2m loan) then how has the value suddenly dropped to £1.25m (~ 40% of valuation)? Surely the apparently false valuation is the issue and not the borrowers previous behavior? I suppose there is the chance that the borrower forged the valuation/bribed the valuer?
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oldgrumpy
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Post by oldgrumpy on May 16, 2017 10:28:27 GMT
Seems to me that lendy have had their pants pulled well and truly around their ankles with this, and are currently wondering why they cant see any soap on the floor of the shower, hopefully the PF will provide some dignity for the ones who will ultimately foot the bill for this misadventure. Lendy had ample warning that they were dealing with a crook but believed they were smarter than his other victims. His criminal convictions were the least of their concerns, it's what he gets away with that's the real issue. Careful. What convictions? I thought his speciality was avoiding them.
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r1200gs
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Post by r1200gs on May 16, 2017 10:28:35 GMT
Has the dodgy dealings of this Borrower actually had any effect? If the valuation was ~ £2.8m (for a £2m loan) then how has the value suddenly dropped to £1.25m (~ 40% of valuation)? Surely the apparently false valuation is the issue and not the borrowers previous behavior? I suppose there is the chance that the borrower forged the valuation/bribed the valuer? Was the valuation not influenced by the generous rent being paid by a tenant company, one linked to the borrower?
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dandy
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Post by dandy on May 16, 2017 10:36:39 GMT
Yes it does seem £2.8m was fantasy land - but surely L obtain comparables for the rentals being paid? Even MORESO when it is the borrower paying that "rent"? This would surely have revealed the inflated rent.
Surely it is not as easy as to get a valuation done on a building based on owner paying themselves 3x market rent or whatever. Regarding eviction I suppose they cannot evict if the tenant continues complying with their "lease" which by these standards probably has 5 years rent free or such other nonsense.
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ozboy
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Post by ozboy on May 16, 2017 11:00:21 GMT
Has the dodgy dealings of this Borrower actually had any effect? If the valuation was ~ £2.8m (for a £2m loan) then how has the value suddenly dropped to £1.25m (~ 40% of valuation)? Surely the apparently false valuation is the issue and not the borrowers previous behavior? I suppose there is the chance that the borrower forged the valuation/bribed the valuer? As noted in the VR, it relied on information provided by the borrower. Quite simply, it was overvalued; possibly due to some misleading tenant figures, that was probably provided by the borrower. The security is key when investing in these high rate loan; most of the time, the borrower has bad credit history and/ or other issues. If the security is ample, and the legal are good, then as long as the valuation stands up to actual market conditions, then that is the basis we should be investing on This is a nice building - a swanky Office Block done to a high standard; but, how on earth they came to £2.8m, is beyond me.Oh, I think I know how "they" came to £2.8M. And I don't believe you Dude  And I would make a very large wager most on here also know how the £2.8M was calculated ..............................................
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mikes1531
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Post by mikes1531 on May 16, 2017 11:18:44 GMT
However, 1 month ago the update from Lendy was: "Property is being marketed with interest shown at or around our outstanding debt levels. New lease with IBM should be agreed imminently." The loan was £2m against a valuation of £2.87m The property is listed for sale at offers in excess of £1,250,000 I find it hard to believe that a guide price of £1.25m is generating interest close to the £2m mark, which doesn't give me comfort about the update from Lendy. £2M wouldn't be near enough. The loan is nearly seven months overdue, so 'our outstanding debt level' should include about £200k of unpaid interest/fees, not to mention the recovery costs that I expect the loan agreement allows Lendy to add to the debt.
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Liz
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Post by Liz on May 16, 2017 13:04:55 GMT
Lots more discussion HERE (MODs - Please Merge  ) It is hard to see how there will be anything other than a shortfall. There is a PG, but little chance of anything there The accuracy of the update is an issue on LY Note : New article in the evening standard about our borrower & his lending business. I've tried to add an altered title that isn't googleable, but all variations lead to the news article. I believe the borrower is honest and benevolent enough to pay in full on that PG.    That PG isn't worth the ink on the paper it was written on. I wonder what name the PG is in.
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oldgrumpy
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Post by oldgrumpy on May 16, 2017 13:14:06 GMT
Lots more discussion HERE (MODs - Please Merge ) It is hard to see how there will be anything other than a shortfall. There is a PG, but little chance of anything there The accuracy of the update is an issue on LY Note : New article in the evening standard about our borrower & his lending business. I've tried to add an altered title that isn't googleable, but all variations lead to the news article. I believe the borrower is honest and benevolent enough to pay in full on that PG. That PG isn't worth the ink on the paper it was written on. I wonder what name the PG is in.
Well he does specialise in taking the pi Michaelus! 
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ozboy
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Post by ozboy on May 16, 2017 13:49:31 GMT
Has the dodgy dealings of this Borrower actually had any effect? If the valuation was ~ £2.8m (for a £2m loan) then how has the value suddenly dropped to £1.25m (~ 40% of valuation)? Surely the apparently false valuation is the issue and not the borrowers previous behavior? I suppose there is the chance that the borrower forged the valuation/bribed the valuer? I am biting my lip .........................
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GeorgeT
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Post by GeorgeT on May 16, 2017 15:33:50 GMT
Has the dodgy dealings of this Borrower actually had any effect? If the valuation was ~ £2.8m (for a £2m loan) then how has the value suddenly dropped to £1.25m (~ 40% of valuation)? Surely the apparently false valuation is the issue and not the borrowers previous behavior? I suppose there is the chance that the borrower forged the valuation/bribed the valuer? I am biting my lip ......................... The valuation was wrong. Even the valuer noted the rental figure he had been given by the borrower seemed very high and substantially above market level. However my understanding is that the valuer was instructed to value on the information provided by the borrower. Therefore the fault lies at Lendy's door, in my opinion. Lendy were happy to take information provided by this borrower at face value, despite his past. When there is a new, long lease in place with a tenant connected to the borrower, at a well above market rent, it doesn't take a rocket scientist work out it's, as Donald Trump might say, a 'fake lease' entered into between connected parties in order to falsely increase the value of the freehold interest so a bigger loan could be obtained against it. Transactions between connected parties (i.e. deals that weren't done at arm's length) should ALWAYS be disregarded because they are not indicators of market value. I don't understand why Lendy, with their brilliant DD, didn't smell the rat. Besides, a cursory inspection of the subject property and its location shows it is a steel clad, industrial type build on an industrial estate, complete with roller shutter doors.
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moist
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Post by moist on May 16, 2017 20:34:24 GMT
any comment ...Paul at Lendy
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ozboy
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Post by ozboy on May 16, 2017 21:43:30 GMT
any comment ...Paul at Lendy He's away - back in a couple of weeks Howsabout - savingstream Poor lad, needs a good loooooong rest from you lot!
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Liz
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Post by Liz on May 16, 2017 23:25:33 GMT
any comment ...Paul at Lendy He's away - back in a couple of weeks Howsabout - savingstream And george
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mikes1531
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Post by mikes1531 on May 16, 2017 23:34:53 GMT
any comment ...Paul at Lendy He's away - back in a couple of weeks : Are you sure? I thought his 'do not tag me' message said he was going to be away a few days this week.
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