Peer-to-peer platform Simple Crowdfunding is still considering new lending for properties which have had a recent valuation.
Because of the Covid-19 pandemic, lenders can’t send valuers out to value properties, so the majority of new lending by property lenders has stopped.
However, Simple Crowdfunding is lending on new applications where a recent valuation is in place. The platform then uses a desktop valuation to adjust the valuation to fit into the ever-changing environment.
“Desktop valuations are being used but only on indicative terms, so we haven’t come across anyone who has proceeded on one,” said Atuksha Poonwassie, co-founder and managing director of Simple Crowdfunding.
“From a P2P lending standpoint, we will consider lending if there is a current or recent valuation already in place and we can accommodate that and look at the adjustments based on what the market has done.
“In terms of the loan-to-value, that’s all being considered very carefully.
“To evaluate a new site with multiple unites becomes more complex because unless you’ve done land surveys and other things, how are you going to know the value?”
Poonwassie added that as it’s becoming more challenging for borrowers to get traditional finance in this environment, the platform has been really busy with new applications for project finance.
“The whole market has been affected and we don’t know what the consequences will be but we’re still absolutely optimistic for the future,” she said.