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Post by peterpea on Feb 15, 2018 20:02:36 GMT
Valuer is required to have professional indemnity insurance by law Hope so. Couldn`t see it on the valuation report.
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ozboy
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Post by ozboy on Feb 15, 2018 20:07:57 GMT
W**** H**** H**** valued at 750,000. actual at auction price will be around 300,000. I live there, I know what a property is worth in a fire sale if it comes to it. Lendy loaned 500K = 100% Loan to monies paid for property = reckless lending of our money. Learned anything ?? Yes, it's always intrigued me why the Platforms refuse/ very rarely like to divulge the price paid for the property by the Borrower. 
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ozboy
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Post by ozboy on Feb 15, 2018 20:13:54 GMT
Before this loan was written, Lendy undertook detailed due diligence with our advisers, including a valuation by a RICS registered independent property agency. Wouldn't it make more sense to get several valuations on a loan of this size, and then go with the lowest of the valuations? I'm a little horrified to hear that our money is being lent out on the basis of a single valuation. On top of this, there's the fact that the current property PLUS a bunch of extra land and buildings failed to sell for 5 million in 2013. Very odd that anyone thought that a reduced sized version of the property would be worth 4.9 million.No, not at all, par for the course and business as usual for The Platforms, Borrowers and RICS Club. Welcome to P2P Land, poppyland. 
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Post by peterpea on Feb 15, 2018 20:15:40 GMT
W**** H**** H**** valued at 750,000. actual at auction price will be around 300,000. I live there, I know what a property is worth in a fire sale if it comes to it. Lendy loaned 500K = 100% Loan to monies paid for property = reckless lending of our money. Learned anything ?? Yes, it's always intrigued me why the Platforms refuse/ very rarely like to divulge the price paid for the property by the Borrower. it was on the market for about 500K not 750K. A discount was mentioned by Lendy ?? Unlikely. Saw it on a property website at asking 500K. Don`t think he had to put any money of his own in. Looks fully funded. 100%
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Post by dan1 on Feb 15, 2018 20:25:53 GMT
W**** H*** H**** valued at 750,000. actual at auction price will be around 300,000. I live there, I know what a property is worth in a fire sale if it comes to it. Lendy loaned 500K = 100% Loan to monies paid for property = reckless lending of our money. Learned anything ?? /Mod hat ON peterpea - Please can you read your messages as a matter of urgency. Click on Messages on the right hand side of the menu at the top of the screen.
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Post by peterpea on Feb 15, 2018 20:26:34 GMT
Paul, Many thanks for taking the time to poke your head above the parapet and address some of the concerns raised. Dear all, We are of course disappointed that the sale of W++++++ C+++++ at auction fell short of the original independent valuation put on the property. But presumably, Lendy are not surprised by the result. There was a lengthy consultation period and the lot had been listed in the auctioneers catalogue for several weeks of a guide price of £1.5 to £2.0M However, remember the sale of PBL155 is just one stage in our process for recouping maximum value for lenders. Following the auction, we have acted immediately to protect the interests of our investors. As part of our efforts to bridge the gap between the value of the property realised at auction and the loan value, we will be pursuing a claim against the borrower (in line with the terms of the loan agreement) and we will update investors on that and other actions in due course. And that's great to hear. My concern is that lenders will be clamouring daily for updates on this, that and the other when such a situation can be (mostly) avoided by outlining - in broad brush strokes if needed - what the plan of action is, what the likely timescales are, and what the expected outcome is. To repeat myself from above, this situation will have been expected and given both the lengthy lead-in to it and the fact you have "acted immediately" suggests there should be some way of setting lenders' expectations here. Despite our strong and sustained track record of delivering above market returns to our investors, there are, sadly, occasional instances where a single property may not realise its full potential value for investors. It is for this reason that we always recommend that investors diversify their portfolios across a wide range of loans in order to manage concentration risk effectively. We also always recommend that investors read the full independent valuation reports on the properties they lend against and never to commit more than they are comfortable with to any one loan. This is a timely reminder on the importance of diversification and it would show Lendy in a responsible light were it to highlight this whole episode in tomorrow's email update / newsletter sent to all Lendy registrees. (Which I presume will happen. After all, when it comes to good copy - waste not, want not ) To re-iterate, setting and managing expectations during these problematic times is almost as important as resolving the issue itself. Thanks again. This advice is fine after the event. When many of these loans were made it was not possible to diversify as you can now as the loans were few in number. Now you can`t sell in order to diversify. We are stuck with them hoping for a good outcome. Lendy said they would rather make no loan rather than a bad one. Hollow words. They were clearly in a rush to get business moving and threw caution to the wind.
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ozboy
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Post by ozboy on Feb 15, 2018 20:32:04 GMT
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Post by peterpea on Feb 15, 2018 20:57:29 GMT
This advice is fine after the event. When many of these loans were made it was not possible to diversify as you can now as the loans were few in number. Now you can`t sell in order to diversify. We are stuck with them hoping for a good outcome. Forgive my bluntness but that is plain wrong and an example of greed over both common sense and good, disciplined, investment best practice. Diversification is possible - both across platforms, and within a platform - if the lender is prepared to be patient and stay in cash until the opportunities arise, whether they be via the SM or new loan / tranche listings. It is the fear of missing out (aka greed) that causes lenders to invest too heavily in individual loans and to over-expose themselves to too much risk. It is no one else's fault but their own. It is not greed. it is a matter of trust. Lendy told me they have due diligence, would not make a bad loan, have LTV numbers (which are false), they give lots of information which turns out to be inaccurate. How can we make informed decisions based on inaccurate information. If I were greedy I would be continuing to invest. Now I know what is what I will not invest. Diversification is unimportant , the failure rate is very large.
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dovap
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Post by dovap on Feb 15, 2018 21:03:40 GMT
matter of trust - blimey they'll be flogging you the magic beans next
diversification on Lendy is an interesting concept though for derisking
this one was junk from the start and always seemed headed for a bad ending (much like the tin shed)
instead of all the wailing and gnashing of teeth - just don't continue to use Lendy and learn a lesson
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Post by peterpea on Feb 15, 2018 21:08:25 GMT
Forgive my bluntness but that is plain wrong and an example of greed over both common sense and good, disciplined, investment best practice. Diversification is possible - both across platforms, and within a platform - if the lender is prepared to be patient and stay in cash until the opportunities arise, whether they be via the SM or new loan / tranche listings. It is the fear of missing out (aka greed) that causes lenders to invest too heavily in individual loans and to over-expose themselves to too much risk. It is no one else's fault but their own. It is not greed. it is a matter of trust. Lendy told me they have due diligence, would not make a bad loan, have LTV numbers (which are false), they give lots of information which turns out to be inaccurate. How can we make informed decisions based on inaccurate information. If I were greedy I would be continuing to invest. Now I know what is what I will not invest. Diversification is unimportant , the failure rate is very large. Is it my fault that I invested in good faith based on inaccurate information provided and possibly lost a lot of my investment ? If the property was worth what they said it was worth there would not be a problem. I must not be lied to, it is within the FCA rules that the investment is to be clear and true.
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Post by peterpea on Feb 15, 2018 21:17:01 GMT
matter of trust - blimey they'll be flogging you the magic beans next diversification on Lendy is an interesting concept though for derisking this one was junk from the start and always seemed headed for a bad ending (much like the tin shed) instead of all the wailing and gnashing of teeth - just don't continue to use Lendy and learn a lesson Trust is part of the FCA authorisation.
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drgonzo
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Post by drgonzo on Feb 15, 2018 21:35:55 GMT
Based on the last few pages of this thread I'm starting to think that all platforms that allow manual loan selection should require lenders to self-certify as sophisticated investors at the very least (for whatever that's worth).
Valuations aren't always accurate.
Borrowers aren't always honest.
Father Christmas doesn't exist.
Your capital may be at risk.
Not that I'm excusing BS valuations and borrowers trying to take advantage of this new money tree called P2P - but DYOR and go in with your eyes open. And yes, I'll be taking a loss on this one too... but only what I was prepared to put at risk.
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jaswells
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Post by jaswells on Feb 15, 2018 21:37:15 GMT
Average loss per punter will be approx. 900 quid. (approx. 2300 investors- wnat percentage of the total lending community is that??)
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GeorgeT
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Post by GeorgeT on Feb 15, 2018 21:41:32 GMT
I think we have all focused on our raw capital losses today or at least our potential capital losses based on the disappointing sale price.
I have just put on my rose tinted spectacles and the next calculation I am going to make is to work out how much interest I gained from this particular loan over the months that I held it and then I will deduct that figure from my potential capital loss and that will make the numbers a lot less painful to read. Perhaps others may like to adopt the same approach so that they feel a bit better about things.
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Post by elephantrosie on Feb 15, 2018 21:49:26 GMT
where can i watch the auction live?
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