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Post by supernumerary on Mar 8, 2017 18:44:04 GMT
Huge £7.5m 12% 1 year pipeline loan just added!!
EDIT: that was at 13:20. At 13:23 they changed it to 11% For approx. three minutes, back in February 2017, this loan was going to be a 12% loan!  Could that interest rate change again, for this loan?
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gurberly
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Post by gurberly on Mar 8, 2017 19:14:28 GMT
But if it's For Sale at £7.5M how can any "Valuers" say it's worth £11M, where did the extra magic £3.5M come from? In the sale particulars it states The land loan element (£7,452,896) is to assist with the purchase of the property (via the acquisition of the company that presently owns the property) for £11,000,000.I interpreted that as the borrower was buying the company, including the property for 11m. Could it be the company has other assets worth c. 3.5m ? But perhaps I'm misinterpreting ! Common problem. No, you are not misinterpreting. You are seeing numbers, doing the maths. Yup, there is a gap. It could possibly.... conceivably be that the company being purchased has other assets. But unless you can find proof of those assets and who they really belong to, then you must assume it is nothing more than "Scotch Mist". There for all to see, but no substance.
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fp
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Post by fp on Mar 8, 2017 19:43:29 GMT
£11m is totally irrelevant to this loan, the asset provides the security, and the asset is currently for sale for 7.5m IIRC, not sold for 7.5m I hasten to add... for sale for that amount. The loan is for the value of a London paving slab short of the current asking price, giving this loan a current LTV of 100%.
This is what SS refer to as a better quality loan to previous ones, hence the justification for a lower interest rate being paid to investors. I'd sooner have my money earning 0.35% in my Halifax instant access account.
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sussexlender
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Post by sussexlender on Mar 8, 2017 21:02:04 GMT
I do not see that they have told us how the serious defect in the freehold Title has been remedied (see valuation regarding the missing bsement title).
No one can develop this site if they don't own the basement.
IMHO without clear Title no one should consider this property as free of potential future issues.
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lobster
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Post by lobster on Mar 8, 2017 21:24:54 GMT
There are clearly plenty of issues with this loan, not least an LTV that appears to be in the region of 100% and possibly even more.
However , will it nevertheless be fully subscribed ? Well, on the basis that :
1. Not many lenders are even aware of this site .
2. Those same lenders will see an LTV of just 37% on the pipeline page.
3. 11% is more than tempting in the "new world" of SS
Yes , I think it will fill, but having said that, there is a lot of "filling" required , because this is a very chunky 7.5m loan. As ever , we shall see....
Any other opinions out there on whether it will be fully subscribed ? Just asking , because if there is confidence that it will fill, then it's very tempting just to pile in anyway on the basis that it will , in all probability, be very easy to sell on the SM.
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GeorgeT
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Post by GeorgeT on Mar 8, 2017 22:04:45 GMT
I was just thinking about this one and whether it will fully fund.
It's a massive loan by P2P standards - at nearly £7.5 million.
And with some question marks hanging over the title, status/intentions of the borrower and certain formalities that have delayed it, and a 100% (or higher) LTV ratio and only 11% interest rate, it will be interesting to see the size of the pre fund or whether a load is instantly available on the SM.
Given all the risk factors here, this should be a 12% loan- or 13% really. Particularly given the 100% LTV and huge uncertainties about the short term prospects for the central London property market in the light of Brexit etc, and the fact we are probably now at the top of the current property value boom.
This one rings quite a lot of alarm bells for me. I see it as a high risk proposal that could easily go wrong.
Whether it's worth investing in it for the short term and relying on SM liquidity to bail out early is the decision I'm wrestling with tonight.
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twoheads
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Post by twoheads on Mar 8, 2017 22:39:09 GMT
For what it's worth, I'm in.
Mostly because of the 365 day term. I will be out in 8 months. Sorry to those who say "don't invest if you won't carry to term". Sorry... I don't carry anything to term. I rely (quite irresponsibly) on the SM and the droves of new investors who, at present, will buy anything put in front of them.
Needless to say, if the SM goes in to lock-down/melt-down/other-'down' then I hope to spot it early and get the hell out... hopefully... always hopefully.
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markdirac
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Post by markdirac on Mar 8, 2017 22:44:13 GMT
this should be a 12% loan- or 13% really. If SS offer 11%, and enough lenders accept 11%, then it should be 11%? Elsewhere in P2P land, e.g. AC, the law of supply and demand is fit & healthy. MT and FS and ReBS have to offer high interest, to attract demand. But SS have engineered demand through a clever web site and model, and through early high interest. Demand now exceeds supply. Why do we expect the law of supply & demand not to apply? Note that almost all the IFISA suppliers are offering very low interest. Not because it is commensurate with risk, but because they expect high demand.
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fp
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Post by fp on Mar 8, 2017 23:01:29 GMT
this should be a 12% loan- or 13% really. If SS offer 11%, and enough lenders accept 11%, then it should be 11%? Elsewhere in P2P land, e.g. AC, the law of supply and demand is fit & healthy. MT and FS and ReBS have to offer high interest, to attract demand. But SS have engineered demand through a clever web site and model, and through early high interest. Demand now exceeds supply. Why do we expect the law of supply & demand not to apply? Note that almost all the IFISA suppliers are offering very low interest. Not because it is commensurate with risk, but because they expect high demand. I disagree, platforms paying low rates are taking advantage of an influx of inexperienced investors, SS are heading exactly the same way, I'll leave this potentially toxic 11% loan for you, go ahead and fill your boots.
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elliotn
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Post by elliotn on Mar 9, 2017 4:47:38 GMT
p2p pawn to British Virgin islands.
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Post by jackpease on Mar 9, 2017 8:05:46 GMT
Why do we expect the law of supply & demand not to apply? I agree. I don't think its morally right, I don't think its in the wider interest of SS, investors or borrowers, but it is how the world works. It is SS's job to get a loan out at the least percentage it can - for better or worse we live in a free market. In any case if SS artificially jacked up rates to 'proper' levels, whatever they are, i'm sure there'll be plenty here that accuse it of profiteering. Jack P
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twoheads
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Post by twoheads on Mar 9, 2017 9:50:51 GMT
Well it's finally got its DFL017 number (at 09:49).
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Post by supernumerary on Mar 9, 2017 11:37:57 GMT
Went live at 11:36 am approx. with £2,330,063 available, when I first noticed...
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twoheads
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Post by twoheads on Mar 9, 2017 11:38:06 GMT
Gone live at 11:35.
2328 investors - not fully prefunded.
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Liz
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Post by Liz on Mar 9, 2017 11:39:20 GMT
Gone live and not fully covered! 2328 investors - £2,329,854 remaining... Headed back to feast! Maybe will may see 12% next on these big loans.
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