Property Loan 20 - Repaid in full after Default

I think you are right to be cynical.

Default on a loan does not happen in a day. There will have been discussions and warning signs for sometime now. This is why a large number of all types of insurance policies have a waiting period in them. The key event may happen in policy coverage but it would be very Easy to take out a policy before the event but after the knowledge of the upcoming event.

I have never actually invested in this loan but did do some basic DD when a thread appeared on this thread asking about PP (see here).  At the time it looked obvious that PP was going to be hard to achieve; The Landscape Officer did not support the application due the character of the proposed building, and there were lots of objections from both the locals and even the parish council.

However, what struck me was the correspondence between the applicant and the planners, who was getting increasingly frustrated that his PP application was not progressing (I do seem to remember more communication from the applicant on the PP comments page, but some seemed to have been removed).  At the end of the day, the application wasn't "refused" it was simply "withdrawn"

Now I have done some more research into the current situation.  It seems our borrower has decided to relocate his business to Canada...


Sounds lovely...

Our borrower only acquired the garden centre last year, hedging his bets that he could get PP.  It seems to me he got the hump with the planning process and has washed his hands of the site; simply saying to Lendy, "I don't have the funds, just take the frigging security".

Words fail me... at £34,000 I thought this would have only grown on the SM, but it seems investors are still investing in the big red "loan in default" box.

2 separate investors invested £6,000.00 and £2,400.00 respectively... 

No different to last time with PBL7 IRC, after initial uncertainty while people worked out what was the situation the SM largely carried on as normal. Maybe they have had a definitive reponse from SS on the finer details.

As a aside, there was similar albeit smaller defaulted loan on AC, garden centre that couldnt get PP for a development and everybody was quite pessimistic about a recovery, but, once it finally went into recovery, was resolved quite quickly and in full.

I'm not concerned, just can't see the reason behind investors putting their money into what must now be perceived as the riskiest investment on SS.  Not only that, if they are do require access to their money quickly, they are unlikely to offload PBL20 in a hurry.

I'm not worried about the platform, and I have little doubt that Lendy/SS will recover some or all of the money via the sale of the security eventually; I believe that the garden centre is an operating business, so should be quite appealing to somebody within the industry, but I would imagine that considering it's current situation (in the hands of the administrators) it could be close to the 70% LTV mark...

I would rather be holding performing loans, than defaulted loans, just incase the platform fails. In which case old terms and new, go out of the window.