voss
Member of DD Central
Posts: 153 
Likes: 84
|
Post by voss on Aug 24, 2017 10:35:58 GMT
And we're also back to wondering how much to sell in order to prefund ... what will the allocations be? ... £5k?
|
|
ptr120
Member of DD Central
Posts: 1,198
Likes: 1,346
|
Post by ptr120 on Aug 24, 2017 10:43:35 GMT
Interest is only being held for the first six months of the loan term, rather than the full loan period.
|
|
|
|
Post by brummiefred on Aug 24, 2017 10:46:52 GMT
Mmmm, a wedding venue with accomodation and then residential development, subject to planning, in green belt within the environs of a Grade 2 listed building!!
|
|
|
|
Post by lendinglawyer on Aug 24, 2017 11:02:15 GMT
You absolute losers reading the small print. Anyone with a brain will be out before 6 months anyway. Lol @ anyone who isn't.
|
|
|
|
Post by lendinglawyer on Aug 24, 2017 11:24:58 GMT
You absolute losers reading the small print. Anyone with a brain will be out before 6 months anyway. Lol @ anyone who isn't. What - 6 months. You're the loser; 3 months max. You obviously haven't been keeping up with the mr12% winning strategy I just said "before" six months. Obviously I plan to sell out within a month and bank a few quid. Still, it's 12% (ignoring all cash drag and other negative factors, including time spent listed for sale if overnight or greater, though given I will stay up until 00:00:01 to avoid losing a few pence and being first in the queue for sale day I doubt that will be an issue) so #winning.
|
|
mary
Member of DD Central
Posts: 698 
Likes: 711
|
Post by mary on Aug 24, 2017 11:31:33 GMT
I just said "before" six months. Obviously I plan to sell out within a month and bank a few quid. Still, it's 12% (ignoring all cash drag and other negative factors, including time spent listed for sale if overnight or greater, though given I will stay up until 00:00:01 to avoid losing a few pence and being first in the queue for sale day I doubt that will be an issue) so #winning. Good man - that's what I like to see; some sensible investing... not like the other losers Think your taking the georget role a little too seriously!
|
|
twoheads
Member of DD Central
Programming
Posts: 1,089
Likes: 1,192
|
Post by twoheads on Aug 24, 2017 12:02:06 GMT
Seriously though... what will the status of this loan become if the borrower does not service the interest for months 7 to 12?
Will Lendy service the interest if the borrower does not? Will it become SBL or IA?
There would be a lot of complaints if a 365 day loan stopped paying interest with 183 days still to run.
|
|
mary
Member of DD Central
Posts: 698
Likes: 711
|
Post by mary on Aug 24, 2017 12:18:39 GMT
Seriously though... what will the status of this loan become if the borrower does not service the interest for months 7 to 12?
Will Lendy service the interest if the borrower does not? Will it become SBL or IA?
There would be a lot of complaints if a 365 day loan stopped paying interest with 183 days still to run. It seems SBL is history, so interest for months 7-12 will be paid by the borrower, and if not then I assume it will default on non payment.
|
|
|
|
Post by Lendy Support on Aug 24, 2017 13:16:00 GMT
Regarding the treatment of interest on loans that are being 'serviced' by our borrowers i.e. where Lendy do not hold Interest on Account (IOA), provided the loan interest is paid (the loan is 'serviced') by the borrower, interest will continue to be paid to the investors on a monthly basis. If loan interest is not paid (the loan is not 'serviced') by the borrower as it falls due, interest will accrue as per the below definition; Interest Accruing - Interest continues to accrue on Investor's accounts but is not credited monthly. Accrued interest is only payable if it is recovered from the borrower or realised from the disposal of the security. The Lendy Support Team Lendy Support |
|
dp
Member of DD Central
Posts: 187
Likes: 82
|
Post by dp on Aug 24, 2017 13:19:40 GMT
The developer will have plans drawn up for this place already, probably with the knowledge of knowing what it can get away with, planning wise. the moment they buy, they will submit planning. Planning will take around 3 months. Knowing how they have operated on other developments in Liverpool, the moment they buy, they will start to implement and develop the plans for the main house regardless if PP is in place or not.
|
|
GeorgeT
Member of DD Central
Posts: 1,321
Likes: 1,575
|
Post by GeorgeT on Aug 24, 2017 13:33:55 GMT
Loan Summary
PBL??? - L****** H***
Loan Amount: £1,435,000
Security Value: £2,100,000 *new valuation to be obtained
LY Indicated LTV: 68%
Term: 365 days *interest only to be held by LY to cover first 6 months of loan
% PA: 12%
|
|
GeorgeT
Member of DD Central
Posts: 1,321
Likes: 1,575
|
Post by GeorgeT on Aug 24, 2017 13:49:37 GMT
Thanks to C_D for kicking this one off with good humour. I am now back home and have had a chance to do some basic DD. I thought I would share my initial observations, Pros- 12% interest
- 365 day term
- PBL not a DFL, so no further advances
- Borrower has a track record of repaying loans
- Sub £2 million loan (usually means excellent liquidity)
- Valuation of £2.1m is in line with reported proposed purchase at £2.05m
Cons - Only the first 6 month's interest is being held by LY and therefore guaranteed - Therefore risk averse investors will need to sell out early after 4 to 5 months
- Security asset is a listed building and is on Green Belt land, development potential is constrained by these factors and this may deter future potential purchasers
- Occupied for residential purposes by "live in guardians" - Legal status of occupants unknown - Will vacant possession be easily and quickly obtainable?
- Existing valuation is already a little out of date - valuation date is April 2017 (LY have commissioned a new one)
- Reportedly placed on the market with guide price of £1.25 million in 9/2016; the purchase price, which has informed the valuation, seems high by comparision
Summary A great opportunity to net a 12% return for a few months but not one to be holding beyond 5 months.
My estimated maximum allocation per investor - circa £1,800 My overall loan rating: 7/10 |
|
fasty
Member of DD Central
Posts: 1,038
Likes: 388
|
Post by fasty on Aug 24, 2017 14:02:56 GMT
The idea of exiting after a few months is all very well, however I was reminded of Lendy new policy that unfilled new tranches take priority in the SM.
Some Lendy properties could become Hotel California - "You can stop receiving interest any time you like, but you can never leave."
|
|
GeorgeT
Member of DD Central
Posts: 1,321
Likes: 1,575
|
Post by GeorgeT on Aug 24, 2017 14:15:24 GMT
The idea of exiting after a few months is all very well, however I was reminded of Lendy new policy that unfilled new tranches take priority in the SM. Some Lendy properties could become Hotel California - "You can stop receiving interest any time you like, but you can never leave." Yes a good point and one that has reduced my interest in DFLs even further and led to me almost wearing out the Sell button. However the loan in question is a PBL so unless it changes into a DFL, that won't be a problem in this particular case. I think we can pre-fund this one with a Peaceful Easy Feeling - but because of the 6 month interest thing I will be bailing out early and won't Take It To The Limit.
|
|
n
Member of DD Central
Yet another Nick
Posts: 879
Likes: 461
|
Post by n on Aug 24, 2017 14:52:06 GMT
So I wonder when the tolerance period will start and how long it will be if the loan is never serviced?
|
|
