But three months later, when the loan was due for repayment, it had not been redeemed and the borrower had become very difficult to get hold of. He paid one month’s interest, and then after one month’s grace, Hope Capital had no choice but to instruct LPA receivers.
This is when Hope Capital discovered that it was not his son living in the property but that it was in fact being let on Airbnb, which was against the loan’s terms and conditions, as Sarah Cropper, Redemptions Manager at Hope Capital explains: “On arrival at the property, the LPA receivers could not gain access as there was a communal entrance. It was then they discovered that the property was being let on Airbnb.
“The property’s Airbnb ‘host’ who acts on behalf of the owner refused to give access to the LPA receivers and it soon became clear that the property had multiple bookings on Airbnb, the proceeds of which were going to the borrower.
“Not only that, but despite the LPA receivers being instructed, bookings were still being taken with people staying in the property on a night by night basis.”