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.
I am an active investor on the MT and COL platforms. I have a small % of my P2P funds tied up in suspended LY loans. All views I express are mine and mine alone and nobody should regard anything I write as financial advice (as if they would be so stupid!).
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" ?
Also awaiting a couple of re-valuations to be uploaded (see section 9 of the Borrower FAQs).
As for this loan, I'm personally happy to have it renew. The original valuation seemed reasonable and as much as they shouldn't be relied upon, the reported prices and trend for SW6 seem to be holding up. (I filtered down to 6 months and solely flats.)
The main reason for getting a valuation is to have the condition of the property visually re-assessed. A big crack down an outside wall or tenants that wrecked the interior will affect the valuation, and whilst the platform still holds the asset in that dilapidated state whether the loan is extended or, offering a 'blind' extension will only delay the possibly inevitable task of dealing with that issue. (Especially if the exit strategy for the loan involves selling the asset, although that's not the case here. So far, anyway.)
What does surprise me is that the borrower has presumably stumped up c. £30k to extend the loan. Not so painful when its withheld from the loan amount as retained interest, but must chafe a little when it's the borrowers own money. (Although I suppose s/he could have raised via a second charge loan.)
2) It the interest retained for the duration of the extension as per the original term?
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?
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.