ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,168 
Likes: 4,859
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Post by ozboy on Apr 26, 2017 16:50:14 GMT
It pleases me greatly to see that Investors are finally getting increasingly riled about these VRs and contrived LTVs  Will Surveyors and the P2P industry now tidy up their act? It's got nothng to do with the VR. The valuer provided the valuations he was asked to provide. It's up to the client how he chooses to interpret and use them. IMO, one of the problems is that the financial, banking, IT types who tend to run platforms lack property expertise and the ability to understand and apply properly the information they have been given. That's why there's still a strong argument, espoused regularly by C_D, to do your own DD and analysis of the facts and figures. Am very aware it's obviously nothing to do with the VR in this Loan, what I meant is that the VR is often at fault in many Loans and/ or it can be coupled with a contrived LTV. And I doubt VERY much that there's a lack of expertise and ability, these people I suggest know exactly what they're doing. Which brings me yet again back to that by now very hoary old chestnut as to why do we have to do so much of our own exhausting DD? Valuation Reports and the subsequently quoted LTVs should be reasonably accurate and reasonably reliable. Continually accepting questionable Reports & LTVs with the solution of " Do your own DD" only condones the practice doesn't it?
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am
Posts: 1,495
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Post by am on Apr 26, 2017 19:35:10 GMT
I don't know what the net rental is, but if we deduct the value of one year's gross rental (£16,405) from the loan value (£154,050) this gives an outstanding balance at the end of the term of £137,645. Against a valuation of £190,000 this is an LTV of 72.5%. Since the net rental will be less than the gross rental the terminal LTV will be higher.
It seems to me that we (and the borrower) might be better off if instead of the interest being included in the loan instead the rental income was used to service a smaller loan of £140,000. On the other hand, this exposes us to the risk of something going wrong with the lease, such as the leaseholder going bust.
It also seems to me that if the borrower has an additional £1m equity in property, he could have offered a second charge on an additional property as an additional element of security. (Reading between the lines he intends to remortage another property, using the proceeds to repay this loan, and this loan is liable to repay early.)
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twoheads
Member of DD Central
Programming
Posts: 1,089
Likes: 1,192
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Post by twoheads on Apr 28, 2017 9:24:10 GMT
Loan was just set to 'drawn down' (at 10;20).
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Post by skint4achange on Nov 27, 2017 19:25:41 GMT
Lendy are just showing off now!! Another one completed and fully repaid.  |
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blueninja
Member of DD Central
Posts: 81 
Likes: 48
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Post by blueninja on Nov 27, 2017 22:52:26 GMT
Lendy are just showing off now!! Another one completed and fully repaid. I tiddler, but I guess every little helps! I would really like to see more of the DFL loans repaying though.
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Post by skint4achange on Nov 28, 2017 9:45:30 GMT
Lendy are just showing off now!! Another one completed and fully repaid. I tiddler, but I guess every little helps! I would really like to see more of the DFL loans repaying though. Mighty oaks from little acorns grow
I'm just glad to see one that doesn't have "R1" after the title!! 
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