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Post by martin44 on Oct 15, 2017 11:03:32 GMT
If the Daily Telegraph really want to get their teeth into Lendy..... Then here it is. Not until in have withdrawn all my money from them, thank you all the same. Apart from which, we don't yet know what it is. And who reads the Torygraph these days anyway? Oh, people on the Isle of Wight, yachting types, investor club people. No-one of the least importance. Quite right, we don't know what it is, But whatever it is, it has somehow managed to de-value a £5m asset to a £900k asset, So i would assume it will be quite an important it.
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invester
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Post by invester on Oct 15, 2017 11:06:19 GMT
Sympathise, I am in the same position.
In some ways the fundamentals of this are more disturbing than Whitehaven (another one I am in).
There, the thing collapsed because of borrower apathy/using funds for other things - not to mention the subsequent failure to monitor.
Here we have something that has cut the value of the security - the very thing that people decide to invest on - by an incredible amount. Just how could it have happened? The amount is so large that someone has made an error and a negligent one at that.
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Post by wightknight on Oct 15, 2017 12:13:02 GMT
It's the silence that is getting to me. I'm not in this loan and have been lucky enough to avoid getting stuck with any lemons apart from a small piece of DF 02 which I'm not too worried about. However, the complete lack of information being supplied to lenders yet again shows complete and utter disregard for Lenders. Hell fire, if they can't say any more for some sort of legal reason then at least say that! This is indeed up for sale for £900,000 with nothing more offered to lenders in the way of an explanation other than there are some issues impacting the value. Personally I think P2P platforms with no money of their own to lose in individual loans is opening up a whole new avenue of making money for some, and I'm not talking about the interest offered to lenders either. Where is it being marketed? Trying to track down some details as I am in this for more than I'd like.
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fp
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Post by fp on Oct 15, 2017 12:31:59 GMT
It's the silence that is getting to me. I'm not in this loan and have been lucky enough to avoid getting stuck with any lemons apart from a small piece of DF 02 which I'm not too worried about. However, the complete lack of information being supplied to lenders yet again shows complete and utter disregard for Lenders. Hell fire, if they can't say any more for some sort of legal reason then at least say that! This is indeed up for sale for £900,000 with nothing more offered to lenders in the way of an explanation other than there are some issues impacting the value. Personally I think P2P platforms with no money of their own to lose in individual loans is opening up a whole new avenue of making money for some, and I'm not talking about the interest offered to lenders either. Where is it being marketed? Trying to track down some details as I am in this for more than I'd like. Check your inbox
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Post by wightknight on Oct 15, 2017 12:50:10 GMT
Where is it being marketed? Trying to track down some details as I am in this for more than I'd like. Check your inbox Thanks for that. Disappointing isn't it. Although not unexpected as development land even with planning seldom goes for large amounts on the Island. I've been way to trusting on Lendy's loan particulars, screening and most of all valuations. I can only assume that Lendy was/is instructing valuations based on the finished development and not on the liquid value - hence there would not be a comeback against the valuer. I now need to go through all my loans and do my own valuations to check against Lendy's particulars. I'm really not a happy punter right now, I'll actually need to keep money in Lendy to offset these losses - but can I trust them to stay afloat?
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fp
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Post by fp on Oct 15, 2017 12:54:00 GMT
When a business concentrates on being the most profitable P2P business in the universe over picking up good quality loans and deals for its investors, this is inevitable unfortunately.
Focus on money and it will likely elude you. Focus on your craft and the money will come to you.
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Post by martin44 on Oct 15, 2017 13:37:45 GMT
Thanks for that. Disappointing isn't it. Although not unexpected as development land even with planning seldom goes for large amounts on the Island. I've been way to trusting on Lendy's loan particulars, screening and most of all valuations. I can only assume that Lendy has is instructing valuations based on the finished development on not on the liquid value - hence there would not be a comeback against the valuer. I now need to go through all my loans and do my own valuations to check against Lendy's particulars. I'm really not a happy punter right now, I'll actually need to keep money in Lendy to offset these losses - but can I trust them to stay afloat? the valuation doc has 2 valuations on it, a GDV @£32.720M and a residual valuation as existing with planning permission for a retirement village @£5M. The original valuation doc was on Lendy's website but for some very strange reason, has now been removed. 
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Post by wightknight on Oct 15, 2017 13:49:08 GMT
Thanks for that. Disappointing isn't it. Although not unexpected as development land even with planning seldom goes for large amounts on the Island. I've been way to trusting on Lendy's loan particulars, screening and most of all valuations. I can only assume that Lendy has is instructing valuations based on the finished development on not on the liquid value - hence there would not be a comeback against the valuer. I now need to go through all my loans and do my own valuations to check against Lendy's particulars. I'm really not a happy punter right now, I'll actually need to keep money in Lendy to offset these losses - but can I trust them to stay afloat? the valuation doc has 2 valuations on it, a GDV @£32.720M and a residual valuation as existing with planning permission for a retirement village @£5M. The original valuation doc was on Lendy's website but for some very strange reason, has now been removed. Ah, well at least that's one suspicion I can drop then, hopefully that valuation has been removed because Lendy are investigating redress. I'm still going to have to go over my loan book to check on residual values though. £5M Vs £900k is a big drop, Lendy should have questioned that, even worse, I should have questioned that before investing - in my defence though this is a type of development that is sorely needed on the Island and would have been popular if built - its why bungalows attract a premium on the Island and our biggest industry is care homes!
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littleoldlady
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Post by littleoldlady on Oct 15, 2017 16:39:15 GMT
wightknight Do you live anywhere near the site? Has there been any chatter in the local news? Could you upload any useful photos? From the plan it appears that there are multiple access possibilities, some would involve some demolition but still feasible which makes a single ransom strip unlikely.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Oct 15, 2017 16:48:17 GMT
Fun game for everyone to try - the links to VRs are standard throughout the site > just go to the loan page and add "/valuation.pdf" to the end of the URL The Isle of Wight Loan VR link still works... it just doesn't link to the VR (does anyone speak french?) Troubleshooting instructions for a virtual friend app called Cayla
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Post by genialharry on Oct 15, 2017 17:02:03 GMT
Well it seems to me that Lendy are deliberately hiding the real reason why the vallue has gone down from £5million to under one million. Paul64 won'tell us anything because the management don't want him to its to inconveniant.he is to busy sending good news email updates about how many loans are being paid back Harry |
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mikes1531
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Post by mikes1531 on Oct 15, 2017 17:22:21 GMT
the valuation doc has 2 valuations on it, a GDV @£32.720M and a residual valuation as existing with planning permission for a retirement village @£5M. AIUI, residual valuations are the result of taking the difference between two large numbers -- the predicted GDV and the estimated all-in development cost. As a result, they are extremely sensitive to the assumptions used. In this case, if the GDV was £33M and the residual value was £5M, then the development cost would have been £28M. If it turns out that the development cost is underestimated by a bit, then the residual value suffers greatly. For instance, if the development cost estimate were to increase by 15% (from £28M to £32.2M) then the residual value would drop by 84% (from £5M to £0.8M). I have seen a residual valuation for a P2P platform where the valuer had assumed financing for the development could be obtained at 7% p.a. That clearly was unreasonable because the platform was offering well more than that to its investors, so the resulting development cost estimate seemed -- to me, anyway -- likely to be low and the residual value high. That was enough to convince me to avoid that particular loan. I haven't a clue what assumptions the IoW valuer used and, aside from interest rates, I would have no idea whether or not those assumptions were reasonable.
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seeingred
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Post by seeingred on Oct 15, 2017 18:31:16 GMT
Not sure of the relevance of fine tuning the 32m and 28m calculations of GDV - this site is advertised as 11.3 acres and if it worth only 900k that is less than 80,000 per acre? can this be right for anywhere on I of W?
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Post by GSV3MIaC on Oct 15, 2017 18:51:39 GMT
Well it could if it was infested with Japanese knotweed, inhabited by rare newts and bats, marshy, glowed in the dark to an unreasonable degree (for all that that would save on street lighting), and was downwind from the local tannery/abattoir.
Actually any one of those would probably do, so maybe Paul will one day tell us which. Current sale details on line don't give the answer away, afaict.
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Post by martin44 on Oct 15, 2017 19:06:15 GMT
Well it could if it was infested with Japanese knotweed, inhabited by rare newts and bats, marshy, glowed in the dark to an unreasonable degree (for all that that would save on street lighting), and was downwind from the local tannery/abattoir. Actually any one of those would probably do, so maybe Paul will one day tell us which. Current sale details on line don't give the answer away, afaict. I would doubt any of those could reduce an assets value from £5m down to £0.9m. As rare as newts and bats are, finding another pond or cave is quite easily do-able, as for knotweed, £60 an acre, No.. there is something far more seriously wrong here which potentially could wipe out 80% of investor funds, if we are lucky.
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