cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 17, 2017 11:32:17 GMT
LIVE LOAN
| Loan Amount | : | £ | 817,062
| | Security Value | : | £ | 2,100,000
| | LTV Based on Security Value | : |
| 39% | | 90 Day Market Valuation | : | £ | 1,795,000
| | LTV Based on 90 day Market Valuation | : |
| 46% | | Rate | : |
| 12% | | Term | : |
| 270 days |
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registerme
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Post by registerme on Feb 17, 2017 11:50:40 GMT
PBL127 security headline value was £985k, with a loan amount of £552k.
PBL162 security headline value is £1760k, with a loan amount of £817k.
hhmmmm.
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Post by d_saver on Feb 17, 2017 12:13:18 GMT
The uplift in value is supposedly due to the changed (more advantageous) planning granted since I think.
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bloodycat
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Post by bloodycat on Feb 17, 2017 12:35:20 GMT
Hmmm, I can't see that there is anything that significant in the most recent planning application that would cause the value to nearly double in less than 9 months, and the area appears to have shrunk by 10 acres. Since it is exactly the same valuer for both valuations it can't even be explained by different valuers having different opinions.
This does seem to reinforce my opinion that in the case of most valuations, the value they give you is determined by how much you say the loan amount is going be rather than any reliable assessment of what the maximum achievable value might be. Assuming we have no reason to believe this latest valuation is unrealistic, and there has been no significant improvement in market conditions, it does suggest maybe the borrower could have got a better rate loan before elsewhere, given the apparently much better LTV.
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am
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Post by am on Feb 17, 2017 13:20:19 GMT
The uplift in value is supposedly due to the changed (more advantageous) planning granted since I think. The letter of instruction from Lendy for the new loan said the property was to be "valued as inspected with the benefit of its existing Planning Permission". The VR for the old loan doesn't seem to have the letter of instruction attached, but that valuation appears to have been instructed by the introducer rather than by Lendy, and is a valuation that doesn't give any value the the planning permissions. As I understand, the change is to effectively split the planning permission. This is advantageous - it means less capital is required for development, and that the two sites can be sold independently - but I suspect that it doesn't make a big difference to the valuation. So far the borrower seems to have corrected a mistake by the previous owner (in my underinformed position I can't see any good reason for having one, rather than two, planning applications), but I don't see that any progress has been made on obtaining detailed planning permission. That's not a problem if she plans to flip the property with outline planning permission, but not so good if she intends to do the development. Note that the letter of instruction mentions a £6.7m, 15 month loan (presumably a proposed DFL) rather than the £875,000, 9 month loan, that we're offered. I'm mildly curious about the increase in loan value - there is the need to cover another 9 months interest, and there will have been planning costs. But the jump in value seems rather large, even before one takes into account the income streams associated with the property. (Apart from the £30,000 p.a. income from the wind turbines, there's the renting of the farmhouse to the previous owner, the fishing lakes, and the rural activities centre (including off-roading, quad-biking and clay-pigeon shooting) - are these businesses continuing to operate?)
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am
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Post by am on Feb 17, 2017 13:28:16 GMT
Hmmm, I can't see that there is anything that significant in the most recent planning application that would cause the value to nearly double in less than 9 months, and the area appears to have shrunk by 10 acres. Since it is exactly the same valuer for both valuations it can't even be explained by different valuers having different opinions. This does seem to reinforce my opinion that in the case of most valuations, the value they give you is determined by how much you say the loan amount is going be rather than any reliable assessment of what the maximum achievable value might be. Assuming we have no reason to believe this latest valuation is unrealistic, and there has been no significant improvement in market conditions, it does suggest maybe the borrower could have got a better rate loan before elsewhere, given the apparently much better LTV. The difference can be explained by different instructions - the old loan had the value without the value of the planning permissions, and the new loan the value with the value of the planning permissions. If I am correct in my belief that the VR for the old loan was instructed by the introducer we can't even accuse Lendy of being inconsistent with instructions. The valuation is a sum of parts in both cases, so you can go through and check each element for plausibility.
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SteveT
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Post by SteveT on Feb 17, 2017 17:37:16 GMT
No contradiction. SS loans are launched to fill at least a day or two before expected completion (when the funds are needed)
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 17, 2017 17:47:02 GMT
No contradiction. SS loans are launched to fill at least a day or two before expected completion (when the funds are needed) Whilst the legals (and other details?) are still in draft and negotiations are incomplete? That's right - SS have had many loans go live but withdrawn before drawdown. Why they don't wait until closer to all the legal being complete is beyond me.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 17, 2017 19:19:37 GMT
That's right - SS have had many loans go live but withdrawn before drawdown. Why they don't wait until closer to all the legal being complete is beyond me. Really? Jeeez! I'm genuinely surprised by that. Of course slip-ups can happen* and the (very) occasional loan may not get drawn down but to tempt fate and start collecting lenders' monies before getting the fundamentals finalised, does seem rather reckless in my opinion. Perhaps I've just been spoilt by the likes of BC (who seem to mostly bring their loan offerings to lenders 'live') and Ablrate with their Instant Returns feature. Maybe SS should reconsider the subject of the "ADVANCE LOAN GO-LIVE NOTICE" emails and instead title them "REQUEST FOR ADVANCE FUNDING OF LOAN PRE-GO-LIVE (assuming it draws down) NOTICE" (*Something similar did happen on a loan I'd invested in with Relendex which never drew down. Relendex covered the lost interest on that. Do SS do the same? Yes - all the interest is paid to investors, which come from SS pockets. In the good old days (pre cooling_dude  ) I believe it was because SS needed to know if they had enough funds to send the customer, or wait for funds to build up. Never had any underwritten (AFAIK).
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star dust
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Post by star dust on Feb 17, 2017 20:04:07 GMT
Yes - all the interest is paid to investors, which come from SS pockets. In the good old days (pre cooling_dude ) I believe it was because SS needed to know if they had enough funds to send the customer, or wait for funds to build up. Never had any underwritten (AFAIK). They have certainly stated that they had underwriting in the past, and although it hasn't been mentioned recently I wouldn't be in the least surprised if they can access some if needs be. There are a number of examples stated on the site primarily from older loans with the older documentation style. Take the following example from PBL057 "INVESTOR HIGHLIGHTS Lendy Ltd has full underwriting in place for £2,539,850 of this loan if required. Interest will accrue immediately upon your commitment to this loan. If the loan does not go ahead, Lendy Ltd will pay all interest owed to all committed investors."
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 17, 2017 20:18:12 GMT
Yes - all the interest is paid to investors, which come from SS pockets. In the good old days (pre cooling_dude ) I believe it was because SS needed to know if they had enough funds to send the customer, or wait for funds to build up. Never had any underwritten (AFAIK). They have certainly stated that they had underwriting in the past, and although it hasn't been mentioned recently I wouldn't be in the least surprised if they can access some if needs be. There are a number of examples stated on the site primarily from older loans with the older documentation style. Take the following example from PBL057 "INVESTOR HIGHLIGHTS Lendy Ltd has full underwriting in place for £2,539,850 of this loan if required. Interest will accrue immediately upon your commitment to this loan. If the loan does not go ahead, Lendy Ltd will pay all interest owed to all committed investors." Although they may have had underwriting in place I meant it was not used (Never had any 'underwritten'  ). I may be wrong, but when I was doing the index, I believe that no loan drawdown before SS had sufficient funds from investors.
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star dust
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Post by star dust on Feb 17, 2017 20:52:48 GMT
I don't think we know for certain, but there were times when some of the larger loans had £100k+ chunks plopped on the market every now and again shortly after go-live when we all thought they were fully funded. The general view was that it was underwriters loan parts that were being put back on the market. For example see an ancient post here - first one I came across. |
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homes119
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Post by homes119 on Feb 17, 2017 22:24:10 GMT
Anyone else chuckle at this (from the Overview/VR): "Lesmahagow is a small but expanding town due to its very quick access to the M74 motorway with, a recently developed Tesco Supermarket and Petrol Station, being increasingly popular with lifestyle commuters"  + strange use of commas |
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GeorgeT
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Post by GeorgeT on Feb 17, 2017 22:33:31 GMT
Anyone else chuckle at this (from the Overview/VR): "Lesmahagow is a small but expanding town due to its very quick access to the M74 motorway with, a recently developed Tesco Supermarket and Petrol Station, being increasingly popular with lifestyle commuters" + strange use of commas Sounds like it would be a highly favoured location by Alan Partridge.
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twoheads
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Programming
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Post by twoheads on Feb 18, 2017 17:27:07 GMT
I guess there was nobody at the SS office today to enliven this one - to coin a phrase.
Probably have to wait until Monday.
Although, as often occurs, I may be speaking too soon. We shall see.
EDIT: And I was summarily proved wrong at around 9:50 on Sunday morning!
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) I believe it was because SS needed to know if they had enough funds to send the customer, or wait for funds to build up. Never had any underwritten (AFAIK).
). I may be wrong, but when I was doing the index, I believe that no loan drawdown before SS had sufficient funds from investors.
