r1200gs
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Post by r1200gs on Jul 13, 2017 10:00:37 GMT
In the updates we were told that the timber frames would be erected W/C 10/7/17. How could this be even remotely possible when the site requires clearing before foundation are laid?
I think FS need to justify why they have posted what were obviously spurious updates that had no relation to reality for many months. It also seems to me that if some investors had not been discussing on this thread their interest in alternative action (ombudsman, legal etc) FS would never have published an update that basically says the updates over many previous months were some sort of fantasy. I don't know if the fantasy was on the part of the borrower, FS or both.
As foundations have not yet been laid I have to ask how FS justify the release of anything other than the 1st loan and 4th loan. What steps FS are taking to recompense investors as the LTV has obviously been significantly exceeded.
I'm not sure if FS have been misled, are just stupid or if they knowingly misled lenders. Whatever, they don't come out of this debacle appearing anything other than incompetent and not fit for purpose.
Is this site worth 500K+ or the 141K as initially valued? FS has just confirmed that 5th tranche asset description was false. That is what they wrote " Substructure has been completed and timber frames are paid for and currently being assembled." Anyone who bought that tranche on the primary market or any tranche on the secondary market after the 5th tranche was announced should be entitled to a compensation as they based their investment decision on false information. All investors should have a claim based on the fact that 70% LTV was exceeded if proven. Exactly. I funded tranche five on the basis of investing in a well advanced project going to schedule. The fact that FS continued to post nonsense updates after they were made well aware of the deception is simply scandalous. I have withdrawn all the funds I can withdraw and I want my money back for this one, preferably right now.
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r1200gs
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Post by r1200gs on Jul 12, 2017 14:44:44 GMT
Yes. My loan parts are already on the sales queue. I am just trying to decide whether to leave them there, or cancel the sales, and ride it out. I don't think you have much chance to sell. The £800k+ queue has been there since latest tranche was drawn on 16th June. It is moving, around 6k was bought today, but at this speed it can take 5 months to sell (or longer because the term is getting shorter). Assuming of course that nothing changes on the SM. There is a 7 million loan (or thereabouts) due to repay before long.
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r1200gs
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Post by r1200gs on Jul 12, 2017 14:22:05 GMT
Somebody has a £115,000 in that, at least two with £50,000. Ah, those bonuses, eh?
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r1200gs
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Post by r1200gs on Jul 12, 2017 12:58:51 GMT
I have two accounts. The lower value account has an invite yet the higher does not, although the lower value account has been established the longest.
Bit far to go for me though, to say the least!
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r1200gs
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Post by r1200gs on Jul 12, 2017 12:09:51 GMT
Would the hoardings not have viewing points as this project hss gone so far past expected dates as to have historical significance to locals?☺ Complete with popcorn dispensers.
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r1200gs
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Post by r1200gs on Jul 12, 2017 11:05:46 GMT
I'm going to guess that they are not going to invite all 1618 members. Wonder what criteria they will use to give out invites? Answers on a post card please.
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r1200gs
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Post by r1200gs on Jul 12, 2017 10:30:23 GMT
Currently on the market as "Offers in Region of £725,000" Been at that price for a couple of weeks now - doing the sums show that full recovery is looking unlikely Was recently on at £900k (or between £850k to £900k) And a valuation of 1.2 million. This has to stop.
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r1200gs
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Post by r1200gs on Jul 12, 2017 10:01:34 GMT
ISTM that people are cancelling their SM/default loans, rather than us seeing an increased amount of investment in the SM/default loans. If that is the case, the liquidity profile remains broadly the same (even though the SM looks "healthier"). Whilst I have no doubt some of these are cancelled loan parts (I mean - why not - they are unlikely to sell and you might as well get the bonus rate/_any_ interest), some are investments. PBL074, 6% bonus, the drop is real and listed on the investments tab, same for PPBL056, 5%, PBL064 is cancellations. Fairly easy to see on these loans as they are quite inactive. I didn't check any of the others. I'm not in them. The investor in me though says why not check the value of the security. Overdue or not, if the security is good and would cover the loan+interest, it may be worth considering investing, no? I'm not one who invests based on term. I'm not recommending this and I'm not doing it, but I will keep an eye on it. Quick question for somebody, how do you easily keep track of the amount on the SM?
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r1200gs
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Post by r1200gs on Jul 12, 2017 9:59:22 GMT
I've passed by this a few times since draw down as its in my locality, for anyone invested in this, the site is progressing, the first 4 semi's which were just shells at launch are, and have been for a while all but finished as far as I can see, they were being marketed by beecrofts a few months ago, so maybe some are now sold. To the rear of the site, works have progressed, I can see three sets of semi's which are all just about weathered now, and some ground works were progressing further down the site. I have a few photos I can upload if/when I fathom out how to do it. Always much appreciated when folk can do this for the forum.
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r1200gs
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Post by r1200gs on Jul 12, 2017 9:55:53 GMT
Chat today :
Given your statement in January: "We have given the borrower a maximum of 2 weeks to repay or substantially repay the loan, otherwise receivers will be called in." Please can you say how many days this loan must be overdue before you mark it as unredeemed and take recovery action? - "We have been promised a sum of funds from an intermediary sufficient to considerably pay down the loan. This has been tantalisingly close to completion for a long time. The latest update is that funds will be released from Switzerland last Thursday following a scheduled videoconference with the monetary authorities. We are in direct contact with the intermediary who is arranging this as well as one level further up the chain. This must complete by the end of August as the option to purchase expires then, if the loan is not repaid by then, we will have to call in receivers."
So the loan will be marked as unredeemed and receivers will be appointed in the first week of September 2017 at the latest? - "Yes I believe so"
The initial response appeared almost immediately and so I assume that this is a pre-prepared cut and paste answer. Never in the history of banking has moving a sum of money proved so difficult. I would love to know what is really going on, no transfer should ever take this long.
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r1200gs
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Post by r1200gs on Jul 12, 2017 9:18:04 GMT
Yup, more good news, except for those who throw a little paddy about having to check if they own the loan.
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r1200gs
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Post by r1200gs on Jul 12, 2017 9:15:43 GMT
Yes, and I wasted an entire 1 minute and 22 seconds of my life logging on to check if I held any of them. I had to press a button as I was passing to put on the kettle, spend 3 seconds typing a password and make 5 left clicks on my mouse. Disgraceful. Tea time again r1200gs ? Absolutely! Well, actually I didn't need to check if I owned the loan, I knew I didn't. More good news.
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r1200gs
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Post by r1200gs on Jul 12, 2017 7:00:13 GMT
"The [cashback] scheme is being launched in recognition of the fact that there is a perception that the level of risk increases in the later stages of a new property development, and so to better reward those lenders who can help developers bring projects to completion" Surely the later tranches are lower risk, as the progress made with the previous tranches is clear. The disadvantage of a later tranche of a good project is that you get fewer months interest, and if LL are doing due diligence as they suggest, then they wouldn't propose new tranches for a failing project. Tranches seem difficult for p2p. For a bank, its straightforward to commit to the complete sum at the start, and release stage payments, as the borrower has confidence they will be honoured. But here the borrower can only hope that lenders will still like them 6 months into a build. Intuitively a later stage development seems lower risk as some of the main hurdles have been cleared and you can see concrete progress. If Ly were seeing later stage tranches go unfilled then this could jeapardise the whole project and be very high risk - perhaps the highest risk of DFL would be a distressed sale of an unfinished project. Other tail-end risks could be trying to sell the properties even after building is complete, for example DFL1 revaluation did not afford an interest payment extension and now we are reliant on the borrower having additional, separate security to pledge. These latter stage risks would be avoided by an investor that, say, funded early stages but exited before the end (SM permitting) so CB should help address the key, later stage risk of lenders not funding to practical completion. There are risks there that I never really fully thought through. I would be the one guilty of thinking development in the later stages is much reduced risk, though clearly this is not the case if the end numbers are not looking so great and they need another cash injection which they don't get. Thanks for posting your thoughts.
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r1200gs
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Post by r1200gs on Jul 11, 2017 19:27:54 GMT
Crikey - am I the only one starting to find lending to Ly becoming more difficult than completing a Times crossword?
Deduct one from two, add 0.5 (maybe) bonus interest in months with a 'y' in them, divide by the age of your Granny - drink another bottle after extrapolating by the square root of your shoe size then look again - and yes, bugger, it's still just as ridiculously confusing !!
I just loved the initial simplicity of Ly - I'll have to take a refresher Masters in interpretation to keep up soon - is this really, really all necessary? Or are Ly just emulating what out beloved taxation system has been doing for years (decades?) - keep increasing the number of rules and regulations to try to make the system work, when the reality is that the system itself is actually (or nearly) FUBAR?
Some changes are definitely required, particularly to deal with this pass the parcel secondary market where nobody wants short dated loans, even where the security is good. I'm with you all the way on the simplicity though.
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r1200gs
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Post by r1200gs on Jul 11, 2017 12:17:25 GMT
I like the latest "update" for Somerset property. Very clear: If FS were more diligent in their updates, and better at managing defaults I'd put a lot of money their way. As it is they seem to go out of their way to obfuscate. Why do that? Lack of empathy? Lack of intellect? Lack of interest? Lack of trained employees? Why actively damage your business on a daily basis. It is weird isn't it. To be fair, they have a lot of good loans, and many are still quickly subscribed. They've also recovered quite a few. Which makes the parallel universe they've decided to operate in for Whitehaven unfortunately appalling and inexplicable. I can't see how they think it's something they're going to get away with, pretending they didn't notice this forum that they otherwise read thoroughly? Pretending they didn't see the investor emails/livechats? Even if it somehow comes good, which currently seems unlikely, the deception they're practicing at the moment is going to linger, and it would take an unusually detailed and frank communication from them to start to correct this, as well as stumping up the cash to return to investors in the tranches issued following the 'progress'. I don't have the words any more. Needless to say, I've collected and saved as much evidence of this as possible.
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