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Post by gramsky on Oct 13, 2019 10:12:40 GMT
Relendex valuation = £775,000 (Zoopla estimate = £543,000) Loan amount = £440, 000 We have a second charge security. Loan amount for 1st charge unknown.
Loan is in default and receivers appointed.
3 bedroom flat in same block sold STC for £584,000 2 bedroom flat in same block sold STC for £535,000
Don't know if one of these is the Relendex loan property which is 2 bedroom (I think the 2 bedroom flat sold is on the same floor), but I can't see us getting all our money. Unless the Relendex loan was used to pay off the first loan, in which case we surely have a 1st charge security.
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Post by uksoul on Oct 13, 2019 15:49:07 GMT
Relendex valuation = £775,000 (Zoopla estimate = £543,000) Loan amount = £440, 000 We have a second charge security. Loan amount for 1st charge unknown. Loan is in default and receivers appointed. 3 bedroom flat in same block sold STC for £584,000 2 bedroom flat in same block sold STC for £535,000 Don't know if one of these is the Relendex loan property which is 2 bedroom (I think the 2 bedroom flat sold is on the same floor), but I can't see us getting all our money. Unless the Relendex loan was used to pay off the first loan, in which case we surely have a 1st charge security. When was it sold? I would have thought Relendex would have informed us of the sale if it had been sold. They sent an email months ago they expected to recover all our money when it sold. Have not heard anything for awhile. Hopefully Relendex gives an update after reading this.
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Post by gramsky on Oct 14, 2019 9:48:16 GMT
I phoned estate agents this morning, 2 bed flat sold for £518,000, is not Relendex loan flat, but is on the same floor. So would this sort of figure cover our loan of £440,000 plus the first charge loan?
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Post by uksoul on Oct 14, 2019 12:56:01 GMT
I phoned estate agents this morning, 2 bed flat sold for £518,000, is not Relendex loan flat, but is on the same floor. So would this sort of figure cover our loan of £440,000 plus the first charge loan? They sent an email awhile back saying they expected the sale to cover our loan plus the addtional interest charges now incurred. It is in their interest too for a sale to go ahead and get the max for it. Those flats have increased in price recently and with the likelihood of BREXIT sorted soon, prices may increase further.
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mrsb
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Post by mrsb on Oct 14, 2019 22:29:53 GMT
1st charge is LA who have a charge in respect of a RtoB - or something similar. I think it’s reducing year on year. The original loan docs outline it.
It’s not appeared for sale or rent on RM/Z .... even if let, it would surely still come to market. Given the timescales, surely any tenancy would by now be periodic - and therefore require little notice.
As per the opening post, the valuation is a concern - ain’t it always.
Update from the ever transparent relendex news room is overdue.
Not sure optimism for Brexit solution is appropriate. Parliament will put a knife in anything Boris comes home with.
With all the accrued interest, there’s no/little equity in this, and in my view, R need to pursue a sale with urgency.
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Post by uksoul on Oct 15, 2019 8:49:40 GMT
1st charge is LA who have a charge in respect of a RtoB - or something similar. I think it’s reducing year on year. The original loan docs outline it. It’s not appeared for sale or rent on RM/Z .... even if let, it would surely still come to market. Given the timescales, surely any tenancy would by now be periodic - and therefore require little notice. As per the opening post, the valuation is a concern - ain’t it always. Update from the ever transparent relendex news room is overdue. Not sure optimism for Brexit solution is appropriate. Parliament will put a knife in anything Boris comes home with. With all the accrued interest, there’s no/little equity in this, and in my view, R need to pursue a sale with urgency. [b Contacted Relendex and an update to be given soon to lenders. Seems one step forward 3 steps back with BREXIT
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mrsb
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Post by mrsb on Feb 11, 2020 8:12:03 GMT
Now listed at 525K
320 days of default interest at 12.75% makes the loan+interest fast approaching £500K. Net proceeds of sale at asking price is unlikely to pay it all off. Receivers been banking the rent, but no doubt the rent will barely cover their costs in overseeing the tenants!
Seems like the original 775K valuation was negligent, but what realistic prospect is there of a successful (i.e. produces money money than it costs) action against the valuer.
Some kind of interim financial statement to lenders would be in order.
Balance of 1st charge loan. Current accrued interest. Rents received. (Distribution to lenders if (!) a decent surplus) Costs so far of receivership. Any other costs, accrued fees etc.
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Post by uksoul on Feb 11, 2020 11:05:33 GMT
Now listed at 525K 320 days of default interest at 12.75% makes the loan+interest fast approaching £500K. Net proceeds of sale at asking price is unlikely to pay it all off. Receivers been banking the rent, but no doubt the rent will barely cover their costs in overseeing the tenants! Seems like the original 775K valuation was negligent, but what realistic prospect is there of a successful (i.e. produces money money than it costs) action against the valuer. Some kind of interim financial statement to lenders would be in order. Balance of 1st charge loan. Current accrued interest. Rents received. (Distribution to lenders if (!) a decent surplus) Costs so far of receivership. Any other costs, accrued fees etc. Hopefully 525K is the minimum seling price and interest will push the selling price up. Relendex are very hopeful of recovering all of outstanding money i was told previously. Like you though surprised by the recent listing price. Hopefully Penny will read your post and post a reply. Excellent point on an interim breakdown of costs/balance to date.
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mrsb
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Post by mrsb on Feb 11, 2020 23:31:50 GMT
525 is the asking price - on Rightmove. Highly unlikely to go for more! Recent sales in the block don't help, #27 went late list year for £518K, a 2 bedder like ours - so surely the benchmark.
Agent fee on sale would be £10K, perhaps the VAT is recoverable. Lawyer fees on the sale .... etc etc, then the receivership costs, and treats, fees and rewards for the non-participants etc etc etc.
Perhaps we should open a vote on what the net (before 1st charge repaid!!) might be. I'll start with £460~£475.
Suggesting a break-down was "an act of purest optimism" - can't see Relendex making such a disclosure under their minimum information policy.
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tjtl
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Post by tjtl on Feb 12, 2020 7:38:08 GMT
I agree- I am assuming that we will just about get our capital back from the sale, but the deferred income will be a write off without a lengthy battle against the valuer ( and I cannot see his PI insurer paying out without a fight). Against that I give some credit to Relendex for at least pursuing this and getting the flat marketed- given a % of P2P fans will go wrong, getting the capital back doesn't feel like the worst outcome. I am a bit more worried about some of the other loans- particularly Evesham.
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Post by uksoul on Feb 12, 2020 7:58:30 GMT
525 is the asking price - on Rightmove. Highly unlikely to go for more! Recent sales in the block don't help, #27 went late list year for £518K, a 2 bedder like ours - so surely the benchmark. Agent fee on sale would be £10K, perhaps the VAT is recoverable. Lawyer fees on the sale .... etc etc, then the receivership costs, and treats, fees and rewards for the non-participants etc etc etc. Perhaps we should open a vote on what the net (before 1st charge repaid!!) might be. I'll start with £460~£475. Suggesting a break-down was "an act of purest optimism" - can't see Relendex making such a disclosure under their minimum information policy. Ahhh.. not looking good then on getting above the asking price. There was also a substantial charge to the council i believe involved.
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Post by uksoul on Feb 12, 2020 8:05:13 GMT
I agree- I am assuming that we will just about get our capital back from the sale, but the deferred income will be a write off without a lengthy battle against the valuer ( and I cannot see his PI insurer paying out without a fight). Against that I give some credit to Relendex for at least pursuing this and getting the flat marketed- given a % of P2P fans will go wrong, getting the capital back doesn't feel like the worst outcome. I am a bit more worried about some of the other loans- particularly Evesham. Yeah seems like capital will be repaid at least. Has Evesham been in default longer than Waterloo? Waterloo is my only prob loan with Relendex
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Post by peterst on Feb 12, 2020 9:06:25 GMT
I think Evesham (a mixed use redevelopment) and London Residential (an almost identical situation to Waterloo) were all put into receivership at about the same time. I only discovered at that stage that the same borrower was behind all three, thanks to the Relendex policy of keeping the borrowers' names anonymous. I dig a little more deeply nowadays and only invest if I can identify the borrower, which admittedly does not usually take more than a few minutes research.
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tjtl
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Post by tjtl on Feb 12, 2020 9:23:55 GMT
The interesting point will be if the valuer on the "three problems" are linked in someway- if they were that might improve the chances of some legal action.
I know that Relendex do read this- and the suggestion that more information is given about the borrower (not name- just if, for example, they have other loans with Relendex, if so what is the total exposure, and their total wherewithal) is an excellent one.
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mrsb
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Post by mrsb on Feb 13, 2020 8:10:14 GMT
Yes - lets have greater transparency on multiple loans to same borrower.
Also - a useful addition would be disclosure of what %age of different loans are held by Relendex Directors, Members and connected parties - and any changes thereof after draw down. We see these parties bidding during auctions, but difficult to track any RMP sales without tracking the part numbers - which is too tedious to do without writing some kind of datascrape program .... including the handle (name) of the seller in RMP lists would be a start. Also, we have no idea if these parties acquire or offload parts between each other or (off RMP) to/from further parties.
Publishing all updates at 'Box' was a good start, plenty more to do ......
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