I put £100 of this loan up for sale this afternoon and it sold within about 2 minutes. I hope a fellow forum member was the buyer.
I retain a decent 3 figure stake in this loan and I am happy to hold because it is a quality loan but I wanted to free up a bit more to raise my stake in the Liverpool renewal which has a longer remaining term.
The golden days of P2P lending are well behind us, in my opinion. I am now retired from active P2P investing and the undertaking of due diligence. Just awaiting resolution of 2 DEF loans in LY; 2 DEF loans in MT and my entire COL investment.
Collateral Rep, I see that BL00017 is now listed for a "6 month extension". Given that it was originally launched as a "6 month bridging loan", can you please explain why this loan is being extended rather than renewed?
Also, critically, is the borrower paying another 6 months of interest upfront so that "the LTV doesn’t increase during the lifetime of the agreement" ?
1) Has a re-valuation been undertaken? We complete our own internal Due Diligence and speak to local agents in the area, if we have any doubts about the asset reducing in value we would instruct a further RICS valuation.
2) It the interest retained for the duration of the extension as per the original term? As always, loans are only extended/renewed once interest for the agreed term has been paid.
3) Some time back, Collateral expressed their intention to upload copies of the charges made against properties to reassure lenders their security is assured. Will we see Collateral to follow through on that commitment, please? During our own due diligence we check land reg for property charges etc. Once legals have completed (a few weeks later) we receive confirmation that our charge has been placed on the property. We will go back retrospectively and put them up.
Collateral Rep , is it the case that with a renewal you can choose whether to renew your loan parts or not, but with a loan extension you don't have the option of having your loan parts repaid?
If Collateral are going to extend loans without the expressed agreement of lenders, then I'd suggest that it would be reasonable for lenders to at least have the option of trying to sell those loan-parts without financial penalty - i.e. without Collateral pocketing the interest while the loan-part to be extended is on sale.
...in addition to the two Collateral cash-hungry events currently available. They do seem to have virtually stalled from an investment view unfortunately. Maybe a large repayment like BL00017 can help these across the line but is there enough time ?