Property development lending

As mentioned by others, the first thing I noted about P2P property lending was the overgenerous preferential treatment provided to borrowers via valuations arranged by platforms. For a borrower, the sky is the limit as far as their presented asset, often overvalued by a RICser, resulted in the magic 70% ltv. Consequently, the asset may be deemed worthless as lower yields are frequently achieved during fire sales. 

Should lenders therefore be involved in approving valuation reports? During mortgage applications, it is the lender that ascertains the realistic value of a given property knowing they would need their funds back at some point.  

Overall, best practice may only be achieved when all stakeholders i.e. the lender, borrower, platform and perhaps the valuer are involved. A dedicated thread for other stakeholders would therefore be beneficial. Platform reps could use the opportunity to clarify the underlying rationale for their current practices. Invest and Fund are willing to participate and their views including other platforms should be welcomed. Getting the full picture from all parties would enable appropriate adjustments to be made to ensure the survival of the industry. After all, we're in this together! 

The final stage might involve the FCA. Perhaps regular meetings with a lender association or forum rep could ensure regulatory requirements provide ample protection for lenders.