sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,428 
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Post by sqh on Feb 26, 2016 10:13:31 GMT
If it is only 1.5x or 2x oversubscribed then those "gaming the system" will get caught out, and might have to sell the family silver (PBL037 & PBL042) to meet their commitment.
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gt94sss2
Member of DD Central
Posts: 281
Likes: 137
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Post by gt94sss2 on Feb 26, 2016 10:22:51 GMT
The pre-funding of this loan will tell us a lot about how much DD the typical SS investor does, or whether they'll just throw money at anything offering 12% interest. I'd like to think this loan will be undersubscribed, but I'm afraid I'm expecting it to be overfunded. Perhaps not to the same degree as loans with more conventional security, but still overfunded. It may tell us something about DD but lets not forget that some investors have a default PF limit/loan and there has been relatively little notice that the loan is going live - certainly less than 48 hours I understood we were going to get under the new system - giving those individuals less time to alter their PF limits
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guff
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Post by guff on Feb 26, 2016 11:14:20 GMT
A potentially toxic loan in more ways than one.
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Post by sunspot on Feb 26, 2016 11:18:03 GMT
Default prefunding is something that will likely be banned when regulators eventually catch up with this market. Indeed, I don't prefund anything until I've read (or at least skimmed through) the valuation report.
On the specific subject of this loan, it's as perfect an example of a "blue-sky valuation" as I've seen so far.
As for personal guarantees, they have NO PLACE in the peer to peer market whatsoever.
Furthermore, this comment is particularly telling...
his accountant has confirmed his net worth as being over £5m in liquid assets.
This is not how you do business.
Firstly you don't take the word of an accountant in someone else's employ.
Secondly, as a lender of money against assets, in this case, you demand that the loan be held against those "liquid assets", not a potentially worthless piece of inner city scrub.
Of course, if a company wishes to lend its own money this way, that's fair enough.
The only positive note I can add, is that having dealt with this particular planning department myself some years ago, I did find them helpful.
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t
Posts: 77
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Post by t on Feb 26, 2016 11:25:57 GMT
Maybe ss will do the same as fs done today and drop the loan  |
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Post by ragamuffin on Feb 26, 2016 11:30:46 GMT
Ok - lets do a sweepstake on PF allocation - anyone prepared to nail their colours to mast - nice and simple please...people will get X%
30%
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Liz
Member of DD Central
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Post by Liz on Feb 26, 2016 11:40:37 GMT
Ok - lets do a sweepstake on PF allocation - anyone prepared to nail their colours to mast - nice and simple please...people will get X% 30% I got 100% of what I wanted
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Post by GSV3MIaC on Feb 26, 2016 11:41:45 GMT
As for personal guarantees, they have NO PLACE in the peer to peer market whatsoever.Furthermore, this comment is particularly telling... his accountant has confirmed his net worth as being over £5m in liquid assets. Yep, his accountant will probably be equally adept at explaining how come the liquid assets are no longer available, having been pledged against X other loans, exported to Bermuda, poured into a hole in the ground, or depleted by the Stock Market crash. I agree, if you are lending at 70% LTV against some asset it needs to be worth rather more than 'current value of nil'. I'd be delighted to pledge the money against £2m of actual assets (gold bars, shares, residence, etc.) .. 'nil' is not the lower bound on the value of this land, if the council decide to force the owner to remediate environmental hazards regardless of planning status.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Feb 26, 2016 11:42:09 GMT
Ok - lets do a sweepstake on PF allocation - anyone prepared to nail their colours to mast - nice and simple please...people will get X% 30% I got 100% of what I wanted So Liz Might that be because you asked for nothing..... 
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Post by GSV3MIaC on Feb 26, 2016 11:44:07 GMT
Yep, but she's jumping the gun, since she hasn't been allocated it yet. 8>.
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Post by ragamuffin on Feb 26, 2016 11:47:02 GMT
Come on - lets make it interesting amongst ourselves, most here aint gonna be in the loan so we need some fun!
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dp
Member of DD Central
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Post by dp on Feb 26, 2016 11:48:19 GMT
Liz probably forget to reset her gaming PF and is in deep 
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Post by GSV3MIaC on Feb 26, 2016 11:53:51 GMT
Probably still time to change it .. not sure when they freeze the allocation, but unless they're using a quill pen, no reason to do it more than a few seconds before they allocate..
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ramblin rose
Member of DD Central
“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
Posts: 1,370
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Post by ramblin rose on Feb 26, 2016 12:05:57 GMT
Personally I'll be surprised if this one isn't at least 3X overfunded, and not just because many / most SS lenders are happy to trust SS's judgement on DD. Firstly, I rate the probability that PP will be granted for a residential scheme as high. National planning policy has changed fundamentally since 2011 and now operates on the basis of a "presumption in favour of sustainable development". The planning officers clearly think the scheme must be supported (as they did last time around) so, even if local Councillors are minded again to heed local objections and vote to refuse, it will likely be nodded through by the Planning Inspectorate on appeal. Frankly it sounds like a site that's crying out for a serious clean-up (although I wouldn't want to be involved financially in the development project itself; I reckon 60-80% of the build costs could be "in the ground" on this site!). Secondly, the real question for SS lenders should be "What is the likelihood of the bridging loan being repaid?" and here I suspect SS will have been especially careful to investigate the strength of the PG and the assets that stand behind it. Many lenders have been burned by worthless PGs on other platforms, but a PG from a HNWI is a very different beast. £5m of liquid assets (and likely a fair bit more in illiquid assets like a personal residence) is unlikely to disappear within 12 months. Perhaps I'm a hopeless optimist but I'm happy to seek my usual slice of this one and I'm confident (especially given the size) there will be plenty of willing SM buyers 6 months down the line, when I always try to reduce and replace. If I'm left holding it to term, so be it. I'm certain there will be SS loans that run into trouble in future but I'd wager a small sum that it's more likely to be a loan that looks fine on the surface rather than this one, where the potential rocks are clear and well understood from the outset. "Risky Rose"'s thinking is along pretty much the same lines. Sticking my neck out, I'd say this could easily be 5x oversubscribed, in any case. I too am happy to take my usual preferred slice for the moment.
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webwiz
Posts: 1,133
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Post by webwiz on Feb 26, 2016 12:06:02 GMT
Come on - lets make it interesting amongst ourselves, most here aint gonna be in the loan so we need some fun! OK if it's just for fun I say 0% because they pull it.
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