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Post by df on Feb 2, 2018 21:39:45 GMT
Do you know that the more you read this pipeline loan the more you find to laugh at?
Here's the latest gem that I found amusing:
"We will be closely monitoring progress of the sale and provide regular updates to investors via our bi-weekly platform updates."
  The cartoon and the sound track made me smile. Very tacky and low quality. I like the statement that they are going to monitor and update. It at least shows that they recognise that their lenders have concerns.
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Steerpike
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Post by Steerpike on Feb 2, 2018 22:05:35 GMT
I have no intention of investing at 12%, but shurely the borrower has invested significant time and about £2m in this project in order to get enhanced planning permission with a view to making a tasty profit by selling at £4m to £5m. The fire sale price of £2.5m is suggested by Lendy as a "guarantee" that lenders will get their money back.
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zlb
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Post by zlb on Feb 2, 2018 22:08:24 GMT
One of the pictures seems to show a proposed building that looks extraordinarily ugly. Is that it?
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izigor
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Post by izigor on Feb 2, 2018 22:51:32 GMT
Number of Prospective Buyers: 2
Proposed price to sell at within 180 days marketing: 4 Million
Proposed price to sell if more than 180 days marketing: 4.5 Million
Duration of Loan: 270 days
Loan = £1,961,847 + £176,566 (our interests for 9 months) + Lendy Fees = £2,138,413.23 (Excluding Lendy Fees)
Lendy has put a condition on the loan: "will make robust marketing of the site a condition of our loan (whereby we will have authority to liaise direct with the appointed selling agents)"
LTV is 49% on valuation of 4 Million - but 86% on above figure of 2.13 Million (excluding Lendy Fees) .. so let's say about 90% LTV against realistic value.
So an £80,000 cost to cover "robust" marketing. Since duration of loan is more than 180 days, it means he is trying to get £4.5 Million on the sale. The era of gullible p2p investors is over. Let's start by looking at what this loan is:
Chance to sell this property within 270 Days: 0
Realistic LTV: 90%
Will this loan be extended after 270 days: Yes
Is there a possibility of the marketing not being robust and therefore the loan suspended: Yes
Is 12% interest reasonable: No, it should be much higher, given the risks.
Will I be investing in this loan?: There is more chance I'd join Trump and Hitler in a three-way honeymoon.
Would I do it if it was 18%: What? the threesome?
No, invest in this..: oh no, go higher
20%?: I'd do the threesome for 20%.
sigh.. : wha .. I can't miss the chance to see Trump grabbing Hitler's P....y
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dovap
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Post by dovap on Feb 2, 2018 23:18:33 GMT
looks a nice spot for a baklava factory
good chance to combine two piles of festering nonsense
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Post by skint4achange on Feb 2, 2018 23:58:51 GMT
I have no intention of investing at 12%, but shurely the borrower has invested significant time and about £2m in this project in order to get enhanced planning permission with a view to making a tasty profit by selling at £4m to £5m. The fire sale price of £2.5m is suggested by Lendy as a "guarantee" that lenders will get their money back. Enjoy your investment. I on the other hand will be watching this from the sideline and laughing at the gullible fools who give their money to the next Bernie Madov living in luxury in Malta! Enjoy!
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mikeymike
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Post by mikeymike on Feb 3, 2018 14:34:19 GMT
Nice field, nice barn, nice circular drive. Last planning app. seems to have been in 2004 which was an addition to the 2001 conversion of barn from livestock to craft use. So I see this as being worth 60 acres x £10K or £0.6 million.
A search for S****e farm brinks links to a couple of companies with negative assests of -£469k. Not that i know or am saying that these have anything to do with the current owner. I am only prepared to do enough dd to know when I've done enough.
I'm going to decline this one.
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Post by brightspark on Feb 3, 2018 14:52:39 GMT
Anyone contemplating an investment in this loan should inspect Lendy default records to gain a flavour of what lenders may experience e.g. PBL081 where a new build detached with a defaulted loan of just under £3M is about to be sold for £1.9M. That should put the smile back on the faces of those unfortunate lenders!
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Post by mrclondon on Feb 3, 2018 18:44:39 GMT
Nice field, nice barn, nice circular drive. Last planning app. seems to have been in 2004 which was an addition to the 2001 conversion of barn from livestock to craft use. So I see this as being worth 60 acres x £10K or £0.6 million. A search for S****e farm brinks links to a couple of companies with negative assests of -£469k. Not that i know or am saying that these have anything to do with the current owner. I am only prepared to do enough dd to know when I've done enough. I'm going to decline this one. Our borrower purchased the site in 2006, so a 2004 planning application would have been on behalf of the previous owner. The borrower submitted his own planning application in 2010 which was approved in 2011, and two applications for variations in 2014 & 2016 which were approved. However a 2017 appplication for a variation was refused. Links for the 2010/14/16/17 planning applications are on DD Central, for those without access search West Oxfordshire Planning with S* J**** H****. This also throws up a refused 2013 application to convert the barn to office accomodation.
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Jeepers
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Post by Jeepers on Feb 4, 2018 23:31:45 GMT
Wouldn't touch it with a barge pole.
These valuations are getting worse. Where's the valuation document ?
Just a 'finger in the air' valuation at £4m, but they're confident it would fetch £2.5m in the auction?? I should think so if you reckon it's worth £4m.
Land with planning for a mansion house at auction would have about as many takers as a castle in Wales!
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Feb 5, 2018 16:59:14 GMT
It doesn't add up at all. Given the borrower does not want to develop the land and will be using the bridging loan period to sell it, if it is saleable in the short term for 2.5 million as we are told then surely the borrower would stick it in an auction straight away himself and not borrow all that money at a very high rate of interest over 9 months. I suspect the borrower knows he can't sell it and this is the best way to get his money back and a bit on top for a party. Anyway why does he need 80k to start marketing. I thought agents fees were payable upon completion of a sale not upfront. We were having a laugh about this loan over supper just now, and said exactly the same thing: if Lendy can flog off the property for 2.5million at short notice, why doesn't our pal in Malta just hire them to do it right away and save the bother of faffing around for 9 months with a P2P loan. Someone, somewhere, thinks the P2P lenders are very stupid and gullible. Do you know what poppyland, whilst I completely agree with you, I don't mind the fact that some potential borrowers think we're all totally bloody stupid. It's the fact that Lendy clearly agree with this in spades that really pi**es me off. They've offered us some trash but this one really does take the biscuit. 
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webwizard
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Post by webwizard on Feb 5, 2018 17:48:40 GMT
If you search for Butler Sherborn with the name of the property, there is information from June 2005 that relates to this land and planning permission and it appears that no one has taken up the offer to build it. Therefore, if it has been on and off the market ever since, the value is what someone will pay for it, but if no one wants it there is little value. Caution required.
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poppyland
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Post by poppyland on Feb 6, 2018 13:14:33 GMT
We were having a laugh about this loan over supper just now, and said exactly the same thing: if Lendy can flog off the property for 2.5million at short notice, why doesn't our pal in Malta just hire them to do it right away and save the bother of faffing around for 9 months with a P2P loan. Someone, somewhere, thinks the P2P lenders are very stupid and gullible. Do you know what poppyland , whilst I completely agree with you, I don't mind the fact that some potential borrowers think we're all totally bloody stupid. It's the fact that Lendy clearly agree with this in spades that really pi**es me off. They've offered us some trash but this one really does take the biscuit. You're right Jonno. Lendy should protect us from avaricious dishonest borrowers, not collaborate with them to rip us off.
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GeorgeT
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Post by GeorgeT on Feb 6, 2018 21:49:59 GMT
At the end of the day, what we have here is a field with planning permission to build a mansion on it. Not really the sort of opportunity that people are queuing up to find.
If I was in the market for a mansion and had a few million in my back pocket I'd be after something pre-built with character, history and class. Not a field where I could get one built.
I think only a Premier League footballer type of person would be interested.
That said, the notorious property mogul, Mr N. Van Hoogstraatan, started building a mansion near Uckfield in East Sussex but then he got bored with the project and I think it's rotting away half finished.
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sarahcount
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Post by sarahcount on Feb 6, 2018 22:03:58 GMT
That said, the notorious property mogul, Mr N. Van Hoogstraatan, started building a mansion near Uckfield in East Sussex but then he got bored with the project and I think it's rotting away half finished. At least this was before the days of Lendy. Can just picture a lengthy thread on this one discussing whether the character of the borrower was relevant and if we should believe the lawyer's statements that the re-finance was finally just about to go through.
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