hantsowl
Member of DD Central
Posts: 671
Likes: 546
|
Post by hantsowl on Mar 27, 2018 9:11:39 GMT
How long is this loan going to remain in a 'Loan not drawn' state? It has been sat in that state for over 3 months? Has interest been accruing during this time? If not, is there a way to dispose of my loan part and get the cash back to put to better use? wengyeeRelendex
|
|
maotw
*
Posts: 60
Likes: 29
|
Post by maotw on Mar 27, 2018 10:19:52 GMT
Interest accruing since 28th Dec. Updates for Lenders gone from very thin to nothing.
In a way I'm happy that it's not drawn - particularly under the plan to take the l/h as security - my view is that lenders bids should be released ...
... But it's "Rock and a hard place" at the moment, and me thinks that R see upsetting lenders as better than the fall-out from withdrawing the facility.
May be a Q's interest tomorrow would settle us down.
|
|
mrsb
Posts: 196
Likes: 102
|
Post by mrsb on Mar 28, 2018 17:38:51 GMT
Its pretty poor that Relendex have tacitly stuck two fingers up at their lenders.
The terms are quite clear in that loans un-drawn after 14 days (from auction close) are cancelled.
Lenders therefore have the right to have their money released. Who's going to be the 1st to go to Law over this?
Relendex could do a lot to help themselves by being complete and transparent about the current situation.
If they abandon the stated terms of the loan in respect of draw-down - what else will they not-care-less about?
At best - bidding on a Relendex loan carries risk before your money is even in the hands of the borrower.
3 months today since this loan should have been cancelled!
|
|
Nomad
Member of DD Central
Posts: 727
Likes: 494
|
Post by Nomad on Mar 29, 2018 12:35:23 GMT
How long is this loan going to remain in a 'Loan not drawn' state? It has been sat in that state for over 3 months? Has interest been accruing during this time? If not, is there a way to dispose of my loan part and get the cash back to put to better use? wengyeeRelendex Disappointed that the platform has not responded, pennyrelendex.
|
|
|
Post by pennyrelendex on Mar 29, 2018 14:12:30 GMT
Hi hantsowl , maotw & mrsb I know some have contacted the Lender Support team individually but please allow me to address your comments collectively below: How long is this loan going to remain in a 'Loan not drawn' state? It has been sat in that state for over 3 months? Has interest been accruing during this time? If not, is there a way to dispose of my loan part and get the cash back to put to better use?
This situation is frustrating for us as well as lenders and we are doing all we can to resolve the matter. This delay is exceptional and is by far the longest delay between auction close and drawdown for any loan.
For legal reasons, this loan has not yet drawn down. Clients funds are held by our custodian bank NatWest plc. So client funds are not at risk.
Funds will be released when Relendex acting on lenders behalf are entirely satisfied with final commercial Due Diligence and security.
There is currently no mechanism to allow a lender to withdraw a bid or transfer it prior to drawdown. Interest has been accruing since 28th December. Since the loan is interest-bearing it is yielding 8.5%. Updates for Lenders gone from very thin to nothing.
We did advise lenders of the current position regarding the leasehold and freehold position. Completion is imminent. In a way I'm happy that it's not drawn - particularly under the plan to take the l/h as security - my view is that lenders bids should be released Technically this is not possible since we have entered into a contract with the borrower.
... But it's "Rock and a hard place" at the moment, and me thinks that R see upsetting lenders as better than the fall-out from withdrawing the facility. Lenders funds are secure and they are earning a full interest rate. Once drawdown has happened, lenders may dispose of their holdings through the Resale Marketplace. May be a Q's interest tomorrow would settle us down. Once the loan is drawn down which we expect to be in the next few days, given the delays, we will endeavor to bring forward the first interest payment date. Its pretty poor that Relendex have tacitly stuck two fingers up at their lenders. This is not the case, a substantial update has been provided.The terms are quite clear in that loans un-drawn after 14 days (from auction close) are cancelled. This is incorrect. There is no specified time period for a drawdown post auction close. Interest generally accrues from the 15th day after auction close.
Lenders therefore have the right to have their money released. Who's going to be the 1st to go to Law over this? This is not the case and no borrower would accept such a clause as legal due diligence is sometimes protracted. Relendex could do a lot to help themselves by being complete and transparent about the current situation. We have provided a comprehensive update of the position as above and the situation is unchanged since that update. We are in contact with the borrower on a daily basis to resolve the matter. If they abandon the stated terms of the loan in respect of draw-down - what else will they not-care-less about? We fully comply with our Lender T&Cs and Borrower T&Cs. At best - bidding on a Relendex loan carries risk before your money is even in the hands of the borrower. Lenders are not at risk as funds are still held by the custodian bank and interest is accruing.
3 months today since this loan should have been cancelled! This again is not the case, please see above comment. - Penny
|
|
mrsb
Posts: 196
Likes: 102
|
Post by mrsb on Mar 29, 2018 14:55:52 GMT
Older term sheets (e.g. Waterloo) say ...
Drawdown of the Facility is to take place in one amount by credit to accounts held with the Agent (the "Escrow Accounts") and must take place within 14 days of the earlier of the Availability Date and the date of closure of the successful Auction (see "Interest" below).
Any Amounts remaining undrawn thereafter will be cancelled and the Facility Amount reduced accordingly.
Later ones (e.g. the current Norwich one) say similar, but with a qualification saying "unless extended by the agent" - which I guess is an amendment precipitated by the Bridge House matter. Please would Relendex email Bridge House lenders with a copy of the original Bridge House term sheet. Regardless of the rights and wrongs of the term sheet provisions, what about the proposal to lend against the leasehold in place of the promised freehold? Is that not - on it's own - a justification for releasing lenders [if the freehold security is not taken].
Selling parts on the secondary market is not a solution for any of the above.
Whilst on the subject of relying on published terms, the original Weybridge pitch was that the loan would be repaid via a refinance that would provide additional (surplus) funds for development. That plan has been abandoned, and replaced with a further tranche to rank pp with the original loan. LTV being maintained, so no biggy ... but not what (T1) lenders thought they were getting, and not a peep from Relendex to say "we've changed things".
To avoid doubt, the wording on their [revamped] website just now is Capital Repayment - Refinance of the property on to a development loan with Relendex
I'm not looking for a bun-fight over this, just want to be told the truth in full .... meantime Penny's response does nothing to inform as to the progress of the actual Bridge House matter.
I think the Relendex platform is good .. just need to swap the 40W for a 100W lighbulb in the "lender relations" office.
|
|
maotw
*
Posts: 60
Likes: 29
|
Post by maotw on Apr 4, 2018 9:18:14 GMT
This was received by me from Michael Lynn on 16th March. No further comment since. I'm sure there's a good reason why it didn't complete on that day, but there has been no subsequent comment or explanation as to why it did not.
Bridge House
After delays with the existing lender, we finally got a redemption figure. This allows us to complete today. Funds have been transferred to solicitors for the purpose.
As you can see, Michael's language was pretty definite.
I also like the opportunities presented by Relendex, but hate the lack of substantive news. Michael has also said that there is no long stop date for abandoning the BH lending [if not drawn down]. We're at T+3 months already, what if we get to T+12 months? (Loan is (was?) only for 12 months).
|
|
ant1
Member of DD Central
Posts: 54
Likes: 23
|
Post by ant1 on Apr 5, 2018 21:34:40 GMT
better late than never.....
|
|
mrsb
Posts: 196
Likes: 102
|
Post by mrsb on Apr 6, 2018 12:58:32 GMT
I think this has dented Relendex's reputation .... not by the delays themselves, but the lack of news/clarity. Do we know if they took the freehold or the leasehold?
Reputation at further risk if the GMBL doesn't repay C&I in full.
|
|
|
Post by pennyrelendex on Apr 10, 2018 8:04:27 GMT
Hi All,
Thanks for your patience with us regarding this particular loan, just to confirm - Bridge House loan has legally completed with a charge taken on the leasehold interest. Solicitors acting for the borrower are expediting the acquisition of the freehold, over which Relendex will also take a charge. Relendex will not advance any sum in excess of the covenanted Loan to Value.
|
|
mrsb
Posts: 196
Likes: 102
|
Post by mrsb on Apr 10, 2018 8:31:33 GMT
Penny,
Thanks for the brief comments this morning.
What is the valuation of the leasehold? I've heard a rumour about £100,000 less than the f/h one, but with only 60 yrs odd unexpired, I wonder the validity of that valuation? (if that is the figure.) We all know that a high street bank won't touch anything with less than 80 odd yrs remaining.
Plus of course, any covenant IRO of LTV is at the mercy of the valuation - and RICS valuations are prone to bend a long way in just a gentle breeze.
So a bit more clarity please .... perhaps some explanation of what's troubling the freehold acquisition, and publication of the leasehold valuation (a document from the desk of the valuer)
Regards
|
|
|
Post by pennyrelendex on Apr 10, 2018 14:07:40 GMT
mrsb No problem! As you will appreciate we are limited to what we can discuss on this open platform but we are more than happy to answer all of your lender queries directly. Please can you DM your LD number and we can follow up. - Penny
|
|