david42
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Post by david42 on May 2, 2017 16:08:00 GMT
... (although, I'm not entirely sure where LY get the additional money for the Interest POT...) Lendy have previously said they pay the pre-drawdown interest from their own funds (back in the days when they communicated such things): p2pindependentforum.com/post/37484/thread
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on May 2, 2017 16:18:32 GMT
... (although, I'm not entirely sure where LY get the additional money for the Interest POT...) Lendy have previously said they pay the pre-drawdown interest from their own funds (back in the days when they communicated such things): p2pindependentforum.com/post/37484/threadFair enough; in which case, no reason for them not to pause the term. (Not that it matters much, I guess)
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 2, 2017 16:20:07 GMT
For your DD notes - Some PP has appeared on the planning portal (nothing important, just some discharge of conditions - one approved and one pending). The applicant as indicated on the above PP submission is the same borrower for DFL016 - Only the charge for DFL016 is registered at CH (nothing for this loan - but I assume this property is still owned by an overseas company) |
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Post by charliebrown on Jul 3, 2017 10:04:51 GMT
This loan looks like a decent bet to me. Why is it so unpopular? There's a lot "stuck" on the SM. I've sunk quite a bit into this and was reasonably happy, but do you ever get that feeling when you see a large amount on the SM that some people must know something you don't and have hit the eject button  |
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 3, 2017 10:16:20 GMT
This loan looks like a decent bet to me. Why is it so unpopular? There's a lot "stuck" on the SM. I've sunk quite a bit into this and was reasonably happy, but do you ever get that feeling when you see a large amount on the SM that some people must know something you don't and have hit the eject button The VR notes £10m MV, but it was listed online @ £7.5m - so this was likely a 100% LTPV (edit : or the equivalent to 100% LTPV - the purchase was via the purchase of an overseas business, so muddies the water a tad) I have issues with the fact that they are are knocking down a perfectly good building - this has no bearing on the actual security, but it means that the building was priced up in the appropriate manner, not a dilapidated wreck with a price to match. As such, the LTV will skyrocket in the early stages, as they will flatten our security worth £10m £7.5m, and will take a while before the pendulum swings the other way. Due to the above, I felt 11% wasn't representative of the risks
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Post by charliebrown on Jul 3, 2017 10:33:10 GMT
This loan looks like a decent bet to me. Why is it so unpopular? There's a lot "stuck" on the SM. I've sunk quite a bit into this and was reasonably happy, but do you ever get that feeling when you see a large amount on the SM that some people must know something you don't and have hit the eject button The VR notes £10m MV, but it was listed online @ £7.5m - so this was likely a 100% LTPV I have issues with the fact that they are are knocking down a perfectly good building - this has no bearing on the actual security, but it means that the building was priced up in the appropriate manner, not a dilapidated wreck with a price to match. As such, the LTV will skyrocket in the early stages, as they will flatten our security worth £10m £7.5m, and will take a while before the pendulum swings the other way. Due to the above, I felt 11% wasn't representative of the risks Thanks, CD. I hadn't quite put 2 and 2 together here. I totally get your point. If the property was listed at 7.5m why does it say that the purchase price was 9,250,000? It also says the valuation is 10,647,000 as the purchase price has nothing to do with the valuation  In principle I'd agree that the purchase price has nothing to do with the valuation, but in practice I'd say it has everything to do with it. More complex than I'd thought.
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elliotn
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Post by elliotn on Jul 3, 2017 10:34:58 GMT
That price was an inter-co flip to a tax haven so not necessarily reflective of an arm's length MV such as the marketed/unsold 7.5M. Complex is a good word as it contributed to protracted legals before drawdown was allowed. Edit - only God knows why I would reinforce CDs concerns as I'm right near the front after a month of selling my final loan!  |
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 3, 2017 10:45:37 GMT
The VR notes £10m MV, but it was listed online @ £7.5m - so this was likely a 100% LTPV I have issues with the fact that they are are knocking down a perfectly good building - this has no bearing on the actual security, but it means that the building was priced up in the appropriate manner, not a dilapidated wreck with a price to match. As such, the LTV will skyrocket in the early stages, as they will flatten our security worth £10m £7.5m, and will take a while before the pendulum swings the other way. Due to the above, I felt 11% wasn't representative of the risks Thanks, CD. I hadn't quite put 2 and 2 together here. I totally get your point. If the property was listed at 7.5m why does it say that the purchase price was 9,250,000? It also says the valuation is 10,647,000 as the purchase price has nothing to do with the valuation In principle I'd agree that the purchase price has nothing to do with the valuation, but in practice I'd say it has everything to do with it. More complex than I'd thought. Purchase price doesn't always mean it is representative of the actual market value (sometimes there is an option on the property, a sale by LPA, Quiet Auction with No Reserve etc, etc), but in this case, the property has been on the market (on & off) since 2015 at £7.5m so a good indicating of value (actually a sign it is overvalued even at £7.5m) I believe (from by DD Notes) that the borrower has bought out their own overseas company that owns the property - the cost of doing so was £9.25m, so not a direct purchase of the property (which explains why there is no Price Paid Data @ LR) - what other assets that business consisted of (including any debt it may have had associated with this building) is unknown, but would explain the price that was paid for the company Edit - Crossed with elliotn
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Post by charliebrown on Jul 3, 2017 13:11:35 GMT
Thanks for the great info, CD. Excellent DD and analysis.
So yet again a property that couldn't sell at 7.5m being valued at 10,647,000. What's 3m quid between friends, it's neither here nor there, just a slight rounding error. Do they charge for these valuations, as they don't appear to be worth the paper they're written on.
Where does LY find these valuers? I wouldn't mind asking one of them to come and value my 3-bed semi.
Will think about selling out of this, but it's going to take a month of Sundays looking at the queue and the speed it's moving.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 3, 2017 13:25:36 GMT
Thanks for the great info, CD. Excellent DD and analysis. So yet again a property that couldn't sell at 7.5m being valued at 10,647,000. What's 3m quid between friends, it's neither here nor there, just a slight rounding error. Do they charge for these valuations, as they don't appear to be worth the paper they're written on. Where does LY find these valuers? I wouldn't mind asking one of them to come and value my 3-bed semi. Will think about bout selling out of this, but it's going to take a month of Sundays looking at the queue and the speed it's moving Although LY does instruct the valuation company (with a handful of exceptions - the broker sometimes provided instruction, or a previous VR is used) it is the borrower that pays the Valuation company. That is where the problem lies - the surveyor is often shown around the security and relies entirely on information provided solely by the borrower who is paying the bill. The whole experience is ridiculously weighted in the favour of the borrower, who is looking for a favourable valuation to enable his borrowing potential. In my opinion, the above is a big issue - not just on LY, but across all property based platforms
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gustapher
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Post by gustapher on Jul 3, 2017 16:29:17 GMT
Ditto what everyone else has said but I also think the reason so much is on the SM is simply that it is a large 11% loan and there are lots of alternatives offering higher percentages at the moment. A few months ago when the market dynamics were different and investor demand outstripped borrower demand, this loan soon got snapped up. If those conditions ever return then the large amount on the SM will soon disappear.
Nothing about the loan itself has fundamentally changed over the last two months.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jul 3, 2017 16:47:08 GMT
Ditto what everyone else has said but I also think the reason so much is on the SM is simply that it is a large 11% loan and there are lots of alternatives offering higher percentages at the moment. A few months ago when the market dynamics were different and investor demand outstripped borrower demand, this loan soon got snapped up. If those conditions ever return then the large amount on the SM will soon disappear. Nothing about the loan itself has fundamentally changed over the last two months. Oh definitely! My reply was based on the comment by charliebrown - "This loan looks like a decent bet to me" not so much the position on the SM - many good loans on the SM not moving fast, many bad ones moving fast. The marketplace pretty one dimensional - less to do with "Good Loans", and more to do with Term, Size & Rate - two of three are negatives for DFL017 when it comes to the basics of SM trading
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Post by charliebrown on Jul 4, 2017 13:10:11 GMT
My "looks like a good bet" comment was clearly an ill informed comment. It was a surface level comment without knowing some of the hidden complications. However, since most investors also don't as a rule have that deeper information about loans, I doubt that's the reason why it's unpopular. More likely to be that it's a big loan and it's 11%. I'm also guilty of sometimes just checking the rate and the LTV and jumping in, what I'm learning from hanging out on these forums is that rate and LTV can mask a lot of important complications. LTV in particular is really not to be trusted at face value.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jul 4, 2017 13:53:51 GMT
My "looks like a good bet" comment was clearly an ill informed comment. It was a surface level comment without knowing some of the hidden complications. However, since most investors also don't as a rule have that deeper information about loans, I doubt that's the reason why it's unpopular. More likely to be that it's a big loan and it's 11%. I'm also guilty of sometimes just checking the rate and the LTV and jumping in, what I'm learning from hanging out on these forums is that rate and LTV can mask a lot of important complications. LTV in particular is really not to be trusted at face value.Ho Ho Ho!!!!  Personally, I am just SO pleased and comforted that The FCA are taking huge interest in this and are all over it, embarking on very firm and immediate action. When they wake up in 10 years time.................. 
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Post by mrclondon on Aug 8, 2017 21:47:41 GMT
I walked past this one this afternoon. Not much to report, the security guardians are obviously in residence - open windows and a motor bike parked outside. Its the less inspiring Edgeware Road (i.e. west) fringe of Marylebone, but convenient for the tube stations, and not too far to walk to Paddington station. A fair bit of scaffolding and active refurbishments in the area. There is a M&S food hall at the station, however most local shops and restaurants are catering for the local middle eastern / arabic clientele ( Wikipedia - Edgeware Road).  |
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In principle I'd agree that the purchase price has nothing to do with the valuation, but in practice I'd say it has everything to do with it.
