ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jul 20, 2017 14:24:32 GMT
You've all known about these proven shoddy, worthless "Valuations" for quite some time now. DO something about it. I have. But it requires MANY to Complain. To achieve a RESULT.
 
EDIT: We all know it's a Racket, so let's stop it. |
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elliotn
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Post by elliotn on Jul 20, 2017 14:25:16 GMT
PAID IN FULL(-ish) 😎
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twoheads
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Programming
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Post by twoheads on Jul 20, 2017 14:31:19 GMT
Lendy really need to look in to some of these valuations going forward as properties are not achieving any where near the valuation price ,not sure If they will come out ok on this or not once all costs are accounted for Yup, yet another going for substantially less than the loan valuation. Still, thank goodness there is unlikely to be much of a shortfall, if any? Well, it's 85k more than the loan.
There is currently 44 days of interest to be covered: £25k (Lendy SBL has paid out for June and will do presumably for July too but they'll want to cover that).
Then there's the 2% exit fee for Lendy's bottom line: £34k.
And the 0.5% bonus back to investors: £8.6k.
Not sure if there will be brokers' costs. If so, that's another 2%: £34k.
Oh bugger... we're in the red. Not by much though.
EDIT - Receivers will be costly too.
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elliotn
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Post by elliotn on Jul 20, 2017 14:43:32 GMT
Selling costs. Reasonable result compared to some others in the pipeline.
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r1200gs
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Post by r1200gs on Jul 20, 2017 15:01:43 GMT
So, we have an illegal tenant who shares directorships with the defaulting borrower, and (possibly) sabotages the auction procedures. If the buyer isn't connected to them, can the buyer "cool off" and withdraw from completing the auction purchase because of late disclosures affecting the property? I can't see how the buyer could complain seeing the tenancy was announced prior to the auction. What I cannot figure is why the borrower would set up a tenancy that would surely put off some buyers. I know that is this was announced just before the auction then I would be out, simple as that. Why would borrower do something that might/has lower the selling price? I'm stumped.
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gustapher
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Post by gustapher on Jul 20, 2017 15:02:46 GMT
Regarding the criticism around valuations I think it is worth mentioning auctions will always advertise at below market value to get interest.
People buying at auction will also generally expect to pay below market value as they have to complete quickly and there is increased risk for them as they often will not have time to do the appropriate level of research/DD compared to a normal sale.
From Lendy's perspective with high interest to start and then an increasing rate added to the debt after the loan period is up, it may be better to take that hit at auction than hold the thing on the open market too long hoping to achieve fair valuation.
Valued at 2.45m sold at auction at 1.8m. Seems like a reasonable valuation and a result to me.
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twoheads
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Post by twoheads on Jul 20, 2017 15:16:46 GMT
Timescale for investor repayment - any guesses?
One month?
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fp
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Post by fp on Jul 20, 2017 15:22:13 GMT
Timescale for investor repayment - any guesses?
One month? usually 28 days to complete via auctions, at least it has been when i've gone that route buying.
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oldgrumpy
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Post by oldgrumpy on Jul 20, 2017 15:36:36 GMT
So, we have an illegal tenant who shares directorships with the defaulting borrower, and (possibly) sabotages the auction procedures. If the buyer isn't connected to them, can the buyer "cool off" and withdraw from completing the auction purchase because of late disclosures affecting the property? I can't see how the buyer could complain seeing the tenancy was announced prior to the auction. What I cannot figure is why the borrower would set up a tenancy that would surely put off some buyers. I know that is this was announced just before the auction then I would be out, simple as that. Why would borrower do something that might/has lower the selling price? I'm stumped.Why indeed! I'm a suspicious old git. To put a director "mate" in a few weeks before he knows he has totally lost the security ... who, on the morning of the auction decides to "squat" (er ... sorry, Madam) thus (probably) lowering the value, and presumably the extent of bidding ... must have been done with a purpose. If Lendy discover (and/or we find out - and we will) that the buyer is connected with the defaulting individual, further investigation will be required, especially if full repayment to lenders, including interest, is not achieved without Lendy/PF backup. Watch this space thread for future episodes of the Ch*** and Ni**** story.
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dovap
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Post by dovap on Jul 20, 2017 15:44:40 GMT
Regarding the criticism around valuations I think it is worth mentioning auctions will always advertise at below market value to get interest. People buying at auction will also generally expect to pay below market value as they have to complete quickly and there is increased risk for them as they often will not have time to do the appropriate level of research/DD compared to a normal sale. From Lendy's perspective with high interest to start and then an increasing rate added to the debt after the loan period is up, it may be better to take that hit at auction than hold the thing on the open market too long hoping to achieve fair valuation. Valued at 2.45m sold at auction at 1.8m. Seems like a reasonable valuation and a result to me. Clearly you're very generous if 1.8 on something supposedly 'valued' at 2.45 is reasonable. However, by lendy standards it's not the complete cobblers many are and the 90 day at 2.1 is almost stunningly accurate in comparison. Aren't these straightforward domestic gaffs the easiest things to value property wise though
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seeingred
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Post by seeingred on Jul 20, 2017 17:31:23 GMT
If Lendy discover (and/or we find out - and we will) that the buyer is connected with the defaulting individual,,,,,,,
That sounds almost like a promise. Mind you, from a 30 stone gorilla, it might have been meant to convey a small degree of intimidation too.
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gustapher
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Post by gustapher on Jul 20, 2017 18:04:54 GMT
Regarding the criticism around valuations I think it is worth mentioning auctions will always advertise at below market value to get interest. People buying at auction will also generally expect to pay below market value as they have to complete quickly and there is increased risk for them as they often will not have time to do the appropriate level of research/DD compared to a normal sale. From Lendy's perspective with high interest to start and then an increasing rate added to the debt after the loan period is up, it may be better to take that hit at auction than hold the thing on the open market too long hoping to achieve fair valuation. Valued at 2.45m sold at auction at 1.8m. Seems like a reasonable valuation and a result to me. Clearly you're very generous if 1.8 on something supposedly 'valued' at 2.45 is reasonable. However, by lendy standards it's not the complete cobblers many are and the 90 day at 2.1 is almost stunningly accurate in comparison. Aren't these straightforward domestic gaffs the easiest things to value property wise though I'm not being generous I'm just saying the valuation isn't unrealistic if that's what it got at auction. As to the other valuations you may be right, but on these numbers this valuation looks pretty fair to me.
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mary
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Post by mary on Jul 20, 2017 18:33:29 GMT
If Lendy discover (and/or we find out - and we will) that the buyer is connected with the defaulting individual,,,,,,, That sounds almost like a promise. Mind you, from a 30 stone gorilla, it might have been meant to convey a small degree of intimidation too. That might explain the AST? Intriguing. Not that we're a sceptical bunch!
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oldgrumpy
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Post by oldgrumpy on Jul 20, 2017 18:50:04 GMT
Maybe the valuation was perfectly reasonable ... for the property with vacant possession, but not with the borrower's mate comfortably ensconced, and deciding to stay.
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r1200gs
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Post by r1200gs on Jul 21, 2017 7:31:37 GMT
Maybe the valuation was perfectly reasonable ... for the property with vacant possession, but not with the borrower's mate comfortably ensconced, and deciding to stay. Ensconced at a 12 month discount of about £120,000 no less. One wonders if the tenant will really feel like staying any more, and if the new owner will be upset at not getting their £1000 a month for a property with a market rent of around 12,000 a month. My guess is the tenant will want to leave, the new owner certainly won't try and enforce the rent and this place will very soon be back on the market with vacant possession. Anybody who watched the auction live will have seen that the auctioneer will have successfully scared of many bidders with the uncertainly around the tenancy. Or rather, the borrower did.
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