Updates are going through on site. From the General Updates email just received.
"EXISTING LOANBOOK
DFL001 - Latest development tranche drawn on Friday 7th April.
DFL002; DFL003; DFL004; DFL005; DFL006 - No change.
DFL007 - Independent Monitoring Surveyor report due 13th April.
DFL008 - No change.
DFL009 - Latest Independent Monitoring Surveying Report received this week and final drawdown due to be made next week.
DFL010 - No change.
DFL011 - Independent Monitoring Surveyor drawdown report expected next week as IMS visited site on 13th April.
DFL012 - IMS visit site last week and updating report now received. Latest development tranche drawdown now made.
DFL013 - Independent Monitoring Surveyor report not yet received, but expected shortly.
DFL014 - Independent Monitoring Surveyor will be sending through report next week.
DFL015 - Latest IMS visit to site was on 11th April and report due next week.
DFL016 - No change.
DFL017 - We expect this loan to complete this coming week. The delay has been down to the complicated nature of the ownership structure.
DFL018 - No change.
DFL019 - Loan drawn on 4th April. Independent Monitoring Surveyor report now received.
DFL020 - Loan completed on 5th April so no change.
PBL027 - Discussions and negotiations ongoing.
PBL031 - We are currently negotiating a way forward with the borrower and are hoping to get to a resolution that leads to the redemption of our loan.
PBL037; PBL038; PBL039; PBL069; PBL070; PBL071 - Nothing to report further since last update- interest is strong and we expect an offer soon.
PBL040 - Still expecting repayment at any time; the new bank is at the final stage of due diligence.
Our agent has advised to expect funding next week. PBL046 - No change.
PBL047 - We continue to receive regular payments to cover interest.
PBL055 - No change.
PBL056 -
We have accepted an offer on this property. Now going to legals for, hopefully, a short completion period.PBL057 - No change.
PBL064 - The property continues to be marketed. We have not received any offers yet but there are interested parties.
PBL065 - We are continuing to work with the borrower to make sure the loan is redeemed.
PBL066; PBL067 - Heads of Terms being discussed over potential sale of property.
PBL068 -
We have received an offer from the borrower to repay a significant sum to pay off some of the outstanding capital. Waiting on details. PBL074 - Auction date is reserved as a back stop and interested parties are considering offers by private treaty. All leases are regularised and we are receiving the rent.
PBL075 - Possession hearing is now scheduled for the 12th of May.
This will take at least 6 months to resolve and has been an important lesson to us about residential bridges. Luckily there is plenty of equity in the property and the borrower has another unencumbered asset so we expect a full and clean settlement in the near/medium term. We have changed our policy internally to prevent this kind of problem occurring in the future.
PBL081 - Independent Monitoring Surveyor visiting site on 21st April for final inspection.
PBL082 - Formal demand has been issued to the borrower. Our agent will be taking action soon to dispose and recover the loan.
PBL084 - This loan has been extended until 7/10/2017
PBL088 - No change.
PBL089 - Borrowers solicitors are still working towards redemption with another lender.
PBL094 -
We have put this loan into receivership as of Wednesday this week. The borrower proved incapable of refinancing or repayment. We are discussing options and opportunities with various interested parties to buy part or all of the site.
PBL095 - The new lender is waiting on a valuation report to continue with refinance.
PBL098 - No change.
PBL101; PBL102 - We are in discussions with our legal team in regards to us assisting with the sale of the asset.
PBL103 - New valuation and monitoring surveying reports not yet received but both have been chased and are due in soon.
PBL106 - The new lender is waiting on a valuation report to continue with refinance.
PBL107; PBL108; PBL112 - The finance broker for this borrower has started working on the refinance of this loan.
PBL120 - No change.
PBL122 - This loan will be repaid and relaunched into PBL167.
PBL123 - The borrower informs us that sale of this asset is moving forward.
PBL125 - The borrower is selling the barns with planning to be converted. The sale should redeem our loan entirely.
PBL126; PBL130 - No change.
PBL132 - The borrower is negotiating with the council regarding planning permission due to an issue with the access roads. They hope to sort this out quickly and submit their planning application.
PBL133 - No change.
PBL135 - New valuation report due tomorrow and Independent Monitoring Surveyor visiting site on Tuesday 18th April.
PBL137 - The borrower has paid for 5 weeks of interest whilst they refinance with another lender.
PBL139 - Borrower has paid for a one month extension as the refinance is taking longer than expected.
PBL140 - The borrower expects to redeem a substantial part of the loan with the sale of part of the security to a large development company. The remaining debt will be at a considerably lower LTV and is expected to refinance shortly afterward\'s.
PBL141 - We are currently considering an extension whilst the refinance goes through. We have seen evidence of an offer from the new lender.
PBL142 -
Loan due to expire shortly and if planning not obtained prior to expiry. Borrower will provide cash to extend facility for one month.PBL143 -
The borrowers sale fell through and they are currently working with another purchaser to redeem the loan in due course.
PBL144 -
The borrower is expecting to refinance in within the next month, which means this loan might run slightly over. We are in regular contact with the borrower and their finance broker.
PBL145 - The borrower is in negotiations with a lender for development funding.
PBL147 - The borrower has informed us that they are working on the refinancing of this loan.
PBL148; PBL149 - No change.
PBL150; PBL151; PBL152 - The borrower has started discussions with other lenders regarding the refinance of this loan.
PBL153 - No change.
PBL154 -
PBL155 -
The borrower is anticipating a large capital repayment through refinancing part of the existing loan.PBL156; PBL157; PBL158; PBL159; PBL160; PBL161; PBL162; PBL163; PBL164; PBL165 - No change.
PBL166 - This loan has been drawn down effectively extending the current loan (PBL84) to 7/10/2-17
PBL167 - Loan due to complete over the next few days with PBL122 being repaid.
PBL168; PBL169; PBL170 - This loan was successfully drawndown this week.
PBL172 - This loan was drawndown on 12/04/2017 "
And the Easter weather outlook for
cooling_dude and anyone else interested
"April may well be the cruellest month, as TS Eliot once described it, and if you look at the stock market on the last day of trading before the Easter break, perhaps he is right, with the FTSE 100 continuing its decline despite some strong results from the banks and supermarkets.
As you’d expect, we keep an eye on the rest of the P2P property market to see how interest rates are changing amongst the different platforms as a result of the changing economy, to ensure that you continue to get the best combination of risk and reward.
Our analysis shows that the interest rates on P2P property loans now range from as low as 3.8% up with an average of 8.9%. The current portfolio of loans on offer from one lender to the commercial and residential property market consists entirely of loans below 4%. The lower rates available on P2P property loans seem to reflect the longer-term trend of falling interest rates on commercial loans in the UK.
As we discussed in a recent newsletter, interest rates on bank loans to UK businesses are now down by two-thirds over the last ten years, from 6.38% in January 2007 to 2.39% in January 2017 (Source: BoE).
There is no real mystery why this is happening. The Bank of England and HM Treasury are keen to see interest rates pushed down as it encourages companies to increase spending and investment in order to grow their businesses – powering the economy.
The Bank of England’s response to the banking crisis, to the recession and even to Brexit, has been to keep cutting interest rates.
Last summer the Bank of England set interest rates at a historic 0.25%. This extremely low interest rate environment has enabled lenders to offer loans at very competitive rates. Borrowers have more choice and can afford to look around for the best rates.
Across lending markets, including those where main retail banks do compete, in particular the bridging and development finance markets, borrowers have a high level of choice between lending platforms.
The highly competitive nature of our segment of the market has meant that lending margins have been subject to some downward pressure in recent times. As previously stated, Market participants should recognise this as part of a much broader trend of falling interest rates.
That might not seem the best news to investors who are looking to lend to UK businesses like house builders. However, the fall in overall interest rates impacting P2P is largely because of the fall in the “risk free” rate of return that’s available from investing in UK Government bonds, where interest rates are at near record lows of 1.25% for a bond that does not mature for 10 years. That really does put the average interest rate of 8.9% for a short-term loan into some perspective.
As the interest rate environment continues to shift we will continue to hunt out what we see as the best balance or risk and reward in the bridging and development loans market, with our latest crop of loans entering pipeline listed below. We'll continue to update you on this over coming weeks and months.
From all of us at Lendy, have a great Easter weekend.
Paul
Head of Marketing and Communications "