seeingred
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Post by seeingred on Jan 8, 2018 22:38:24 GMT
I had a dream the other night in which Plymouth was bought by an overseas investor, despite not being finished, the money was ploughed into B********* to finish off the first phase in short order, all the sales of those 6 houses went through inside a few weeks and the money released was put towards the second phase of four houses, those that are behind schedule owing to difficult groundworks and a loan that is reaching its LTV limits. Everyone lived happily ever after. or maybe it was only until the next HSE visit. Obviously real life isn't like that. So what's really going on? MoneyThingWhen is the December IMS report scheduled to be available? I believe there was a site visit just before (or just after?) Christmas.
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seeingred
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Post by seeingred on Jan 3, 2018 20:34:43 GMT
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seeingred
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Post by seeingred on Dec 23, 2017 16:51:49 GMT
The default loan book is currently around £32 million and if DFL002 is added at -180 days (currently -146 days) it will add another £3 million.
Glos may indeed prove a miracle (we'll wait and see......) but most of those loans are small. IoW is large.
Actual capital losses may be some way down the line for many of these existing defaults: they can be stuck in legals for over a year.
The P2P market now has more players than it did when Lendy started out. This competition for investor funds may come into sharper focus just at the time when investors are feeling the pain of their first crystallised losses on Lendy.
For example, if MT and COL managed to offer a succession of good quality loans (better than they have offered recently) then despite Lendy's improved internal competence (so it has been alleged) this may not prevent funds draining away to competitors who may be perceived to have a sounder base.
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seeingred
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Post by seeingred on Dec 19, 2017 17:46:21 GMT
First I have heard of any problems - and I have kept in direct contact with MT. Ominous. The Estate Agent did tell me there had been a change of site manager - maybe it was more serious. We are not being kept in the picture, methinks. SophieThing MoneyThing
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seeingred
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Post by seeingred on Dec 19, 2017 12:34:00 GMT
"If they never start developing, then in 2 years time we are left with an office block block that is more derelict than now. Whilst they have no real losses."This situation can be seen on quite a few DFL type loans. This is why the valuation of the current state of the building is so important - what would it sell at if put into an auction? I have invested but with no great confidence - and only because there is so little else available that is any better. These large commercial projects (office blocks into flats etc) have less certain valuations than simple domestic housing projects but even these go wrong (Exeter on Lendy for example where the developer had starry eyed ideas of value) and I am now concerned by MT's development at BOLL***** - see another thread -it seems to have stalled. The key point on all these (as mentioned by star dust earlier) is that there needs to be a clear idea of what is plannned, how it is to be scheduled, and then a keen eye needs to be kept on the site to spot when things start to go wrong - as opposed to when they have already gone badly wrong (Exeter). It doesn't work in all cases. At Isle of Wight Lendy managed somehow to get into a complete mess without so much as a sod of earth having been turned over.
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seeingred
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Post by seeingred on Dec 19, 2017 11:43:46 GMT
The key point on this loan seems similar to another one that was withdrawn by MT also in the same town/city some short while back : dubious valuation uplift. The planning history of this site goes back ten years or more with proposals for flats. There was a purported open market sale for £1m in round figures recently but this must have been with the knowledge that PP for flats was all but certain if not in fact already existing. Yet suddenly it becomes worth an extra £500,000 and the LTV is based on this figure. I'd go into this (if at all) with the view that the true LTV is 100% (or maybe even worse) and added value (if it ever occurs) will only come with developer money being put in to start work on constructing and selling the flats. In loans of this type it would help investor confidence if the whole of the planning and sales history was laid out for all to see, in plain English, and at the outset. SophieThing
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seeingred
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Post by seeingred on Dec 18, 2017 22:51:38 GMT
My understanding was that the 5 are 'reserved' but not exchanged and the sixth, although partially built is not even being marketed. Normally they would stay on the Agent website and on Rightmove and are listed as SSTC. In this case it appears there is no certainty as to when any exchange may take place and the decision has been taken to remove the development as a whole from any sales publicity. If the first six were 'almost ready' they could be used to showcase what the remaining four might be like when building gets going (if it does) in the spring. Such 'advance publicity' for phased developments is not unusual. In this case, as I understood it, the shutters have come down. I think we are owed a proper explanation of what is going on (or in the case of building works, not going on). SophieThing Here is the Rightmove explanation of SSTC listings. Under Offer & Sold STC Sold 'Subject to Contract' (STC) or 'Under Offer' (UO) means that the homeowner has accepted an offer from a buyer but the paperwork is not yet complete. Under offer (UO) is also used by some Estate Agents to indicate that an offer has been made, but not yet accepted. You can still enquire about an Sold STC or UO property as the sale is not complete until the signed contracts are exchanged. Technically the property is still available. It may still be worth contacting the estate agent to discuss the strength of the accepted offer, particularly as there is no legal obligation on homeowner or homebuyer to complete the sale. On average about 15% of Sold STC or UO properties come back on the market after the sale has failed to proceed.
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seeingred
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Post by seeingred on Dec 18, 2017 17:43:14 GMT
Reminds me of a large loan on Lendy - a prestigious largely new build house in Surrey that finally may be sold for a fraction of its valuation. In the period(s) when it was taken off the market and having its price and/or selling agent updated, it was said to be resting.
A lot of potential building sites do this, the government is getting so uptight about it that they may force development of land that has had planning consent.
Desperate business dealing with a burgeoning population.
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seeingred
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Post by seeingred on Dec 18, 2017 16:49:38 GMT
Bringing the discussion back down to earth, as it were:
None of these are on Rightmove or on the agent's website. Progress on site seems to have fallen off a cliff.
The clock is ticking, interest charges are mounting, none of the first phase of houses has exchanged.
Was the first tranche of buyers hoping to be in by Christmas??
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seeingred
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Post by seeingred on Dec 18, 2017 12:27:59 GMT
Might be something to do with so many P2P platforms located around the Manchester area.......
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seeingred
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Post by seeingred on Dec 12, 2017 16:00:32 GMT
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seeingred
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Post by seeingred on Dec 12, 2017 14:46:30 GMT
I assume that 'well deserved' is merited by the imminent launch of the MT FISA and some low risk 13% loans on the platform? We need deal flow to soak up the cash from (successful) redemptions of Prestbury, Birkenhead and others. Not to mention an influx of cash-ISA money....... One new loan every week in 2018? SophieThing
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seeingred
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Lendy (L) in Administration
Weekly BS
Dec 5, 2017 12:33:13 GMT
Post by seeingred on Dec 5, 2017 12:33:13 GMT
Thank you for the update and reminder. As if I would have forgotten. Paul64Hope you are all aware at Lendy Towers that in the internet age no gross mistake or omission is ever likely to be forgotten. We all know that DFL loans are risky to some degree, projects go wrong, personnel changes, interest rates change, the weather can be horrible, there can be a downturn in the markets. These things we accept. But Isle of Wight never even saw a sod turned over. It was a field and it is still a field.
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seeingred
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Lendy (L) in Administration
Weekly BS
Dec 5, 2017 12:13:21 GMT
Post by seeingred on Dec 5, 2017 12:13:21 GMT
We have no intention to make our loan updates more opaque. Except in those cases where you profess to not having any further information that you could give us. For example, who messed up on the Isle of Wight Loan? External valuers external solicitors or internal personnel? This one has all the makings of a good story when it eventually comes out. An Oxford college, a would-be developer with a big name, a ransom strip, uncertain access rights over a tiny road, planning permissions and charges that were not properly understood (by whom?) and maybe a few locals who will be celebrating at Cowes Week - maybe they'll have bought a new yacht out of the proceeds and enter it in the Lendy handicap race? It will get interesting when we know who finally bought this development plot and for how much.
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seeingred
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Post by seeingred on Dec 5, 2017 12:00:09 GMT
I believe that unsold loan parts from lendy are placed at the front of the existing queue. This is to keep things fair.
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