invester
P2P Blogger
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Post by invester on Jul 17, 2018 20:55:56 GMT
Would anyone like to have a stab at what the GDV is? This might be quite tricky as I gather some of the units were on long lets to the council. Additionally selling flats individually might be a drawn-out affair. I am not sold by the serviced apartments approach, which looks to me to be an attempt to get some cash in.
The work to the flats is obviously unfinished. But how much work is needed, and what will be the end value?
Short of a huge mark-down in GDV or a massive bill to finish the flats I think the value lies in asking for a better offer.
Think P2P for these type of massive loans are dead. The bigger the project, the greater the absolute potential errors. Too many vested interests lined up against lenders. The risk premium does not stack up at all for these big loans, because the platform is out of their depth to properly administer them, and I was naive for making the assumption that other parties would behave ethically. When they do not, the correct interest rates for these sort of things I believe would correspond to that of payday loans, ie where the possibility of reneging is priced in.
I vote 2. It's pathetic they cannot be assertive enough to fight our case and using the voting system just is a snide attempt to turn lenders against each other. I would much prefer a system where Lendy sees the project through to the bitter end and then pursue personal guarantees, just like the loans were meant to be.
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Post by swissmate76 on Jul 17, 2018 21:35:07 GMT
3 is pointless as in essence you are agreeing to lend a million to same problem borrower, 2 is a gamble see how much you can make in a distree sale. and 1 is 11 m now and maybe maybe 1 m down the line
for option 1 who holds first charge on property? HMRC or a new lender?
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Post by df on Jul 17, 2018 22:05:07 GMT
I voted for option A. C wasn't an option and I have very little belief in 1m being paid back, never mind interest/bonus. Option B reads to me as significantly bigger loss than A. I just hope that plan A will actually realise. Was it Scottish estate when the A votes were there, but the deal collapsed?
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Post by df on Jul 17, 2018 22:38:10 GMT
Would anyone like to have a stab at what the GDV is? This might be quite tricky as I gather some of the units were on long lets to the council. Additionally selling flats individually might be a drawn-out affair. I am not sold by the serviced apartments approach, which looks to me to be an attempt to get some cash in. The work to the flats is obviously unfinished. But how much work is needed, and what will be the end value? Short of a huge mark-down in GDV or a massive bill to finish the flats I think the value lies in asking for a better offer. Think P2P for these type of massive loans are dead. The bigger the project, the greater the absolute potential errors. Too many vested interests lined up against lenders. The risk premium does not stack up at all for these big loans, because the platform is out of their depth to properly administer them, and I was naive for making the assumption that other parties would behave ethically. When they do not, the correct interest rates for these sort of things I believe would correspond to that of payday loans, ie where the possibility of reneging is priced in. I vote 2. It's pathetic they cannot be assertive enough to fight our case and using the voting system just is a snide attempt to turn lenders against each other. I would much prefer a system where Lendy sees the project through to the bitter end and then pursue personal guarantees, just like the loans were meant to be. I haven't seen any of those coming for some time (on this and other platforms). If they will - I'm not investing at any rate. Too many bad experiences with mega-loans...
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invester
P2P Blogger
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Post by invester on Jul 18, 2018 11:57:37 GMT
Any predictions on how it will go?
I reckon a creative narrow win for option 1, a 40/30/30 split, the last being people who didn't vote.
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Post by GSV3MIaC on Jul 18, 2018 16:05:25 GMT
If weighted by amount invested, i expect 2 will do better .. big hitters are smart enough to know not to encorage developers to gouge us. "You get what you put up with", so I shan't put up with a voluntary 20%+ haircut .. rather do a Sampson on the whole deal.
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jwatson
Member of DD Central
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Post by jwatson on Jul 18, 2018 16:23:27 GMT
One question - who stumps up the fees and costs for option 2 ? I thought it was Lendy, but I seem to remember there was a case where they creamed it off the capital that was returned to us (though I can't now find any details).
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nsinvestor
Member of DD Central
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Post by nsinvestor on Jul 18, 2018 16:42:30 GMT
You can imply that the revised GD valuation is less than £14m from Lendy's comments, although if we assume new funding of £11 million raised at 70% GDV would imply somewhere in the £15-£16m range depending on fee levels for the raise. Of course, we have no way to validate Lendy's comments and with the trust having vanished no one is going to take them at face value. Paul64 - we need Lendy to share the revised valuation report. We can then take a considered decision (and it would also help you to re-built confidence around your comments) |
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mary
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Post by mary on Jul 18, 2018 18:15:01 GMT
You can imply that the revised GD valuation is less than £14m from Lendy's comments, although if we assume new funding of £11 million raised at 70% GDV would imply somewhere in the £15-£16m range depending on fee levels for the raise. Of course, we have no way to validate Lendy's comments and with the trust having vanished no one is going to take them at face value. Paul64 - we need Lendy to share the revised valuation report. We can then take a considered decision (and it would also help you to re-built confidence around your comments) I actually think that the new Lender is offering to lend higher than £11m. This is a cash poor borrower (else they would not be in the bind they are now), and therefore the borrower can't stump up any interest, it'll likely be withheld aka Lendy, assume at least 6 months = £1m, gives a Current Value of £17m @70%. This ignores the real possibility that the borrower is also freeing up cash to complete the development, which may imply an even higher Current or GDV. Hence why we are not being told the new valuation for a really good reason (if your Lendy and just want shot of this problem).
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jul 18, 2018 19:36:02 GMT
Having been lucky enough to exit Lendy over a year ago I am watching the Vote on this Loan with great interest. A Vote for Option 2 could just be the turning point where Borrower and Platform learn that they no longer have the whip hand and can lash Investors with it. I have also read the cogent arguments for Option 1 and they also make sense, but perhaps the Question is:- At what point do you take a stance? Nothing will ever change otherwise - obvs.  |
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Post by holmesy999 on Jul 18, 2018 20:08:56 GMT
I hope people coming up with their own option are still going to vote- it would be a bad result if the didn't vote was higher than those who voted
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tombraider
Member of DD Central
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Post by tombraider on Jul 19, 2018 2:50:22 GMT
Option 3 is obviously ideal but we don’t have that option. I’ve taken option one as the whole platform appears shakier and shakier with each DFL going to vote. The Scottish loan (may as well be Macbeth) where we vote for no reason said it all. I’m giving up on p2p as an unregulated disaster for me .... collateral. I’ll recoup as much as I can now and move on before another disaster. I need all my lendy default loans to return 60% for me to break even. I know this sounds like apathy from me but I really don’t trust Lendy
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Post by directlender on Jul 20, 2018 9:23:35 GMT
Apologies if this has been asked/answers - are votes weighted? e.g. if lender A lent £10 to the project and lender B lent £100,000 to the project, do they both have equal say or does Lender B's voting rights far surpass Lender A's?
(ps: I just voted Option B - if I have to take a haircut, so be it... Lendy must be forced to stand behind it's sub-par valuations and work hard to regain our investment and our trust. It talks up it's risk mitigation strategies/due diligence efforts, and I for one feel we need to put those to the test and call them out where they fall short. I want to see Lendy fight to recover this loan. A big loss on this (and other) loans isn't in the investors' interest, but it also wouldn't bode well for Lendy on a number of fronts)
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Jeepers
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Post by Jeepers on Jul 20, 2018 9:29:29 GMT
Apologies if this has been asked/answers - are votes weighted? e.g. if lender A lent £10 to the project and lender B lent £100,000 to the project, do they both have equal say or does Lender B's voting rights far surpass Lender A's? 1 vote for every pound in the loan.
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Post by ajduk on Jul 20, 2018 11:16:14 GMT
A pointless poll given that option 3 isn't a real option. So what have all those option 3's actually voted?
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