cb25
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Post by cb25 on Apr 22, 2021 9:49:06 GMT
Being new to CP, this is the first of my loans that has passed it's Loan End date (20/4/21). No surprise that property loans run late, but I'm interested to know whether CP issue an update (e.g. email) to lenders stating why the loan is running late and what the expected new end date is.
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Post by overthehill on Apr 22, 2021 10:45:30 GMT
Good question as it's not easy to track due their platform/website design. I end up searching my email first. So I've had a recent update for all my late loans.
Hasn't this one had a recent raise, I've not checked ? So for these cases just check the lastest phase documents.
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Post by Badly Drawn Stickman on Apr 22, 2021 10:58:42 GMT
Being new to CP, this is the first of my loans that has passed it's Loan End date (20/4/21). No surprise that property loans run late, but I'm interested to know whether CP issue an update (e.g. email) to lenders stating why the loan is running late and what the expected new end date is. Updates (and pretty much anything not directly connected to launch and pledge) are invariable in the messages on the platform, usually there is an email alerting you to the message with a reference to the loan. Often the end is anticipated and a message a few weeks before with any details on extension so may be worth looking back a bit.
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liso
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Post by liso on Apr 22, 2021 11:14:35 GMT
Last update was 4th Feb, stating loan was running late, penalty interest would apply from 20th, and borrower looking to refinance.
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Post by overthehill on Apr 22, 2021 12:59:19 GMT
I was getting mixed up with this Chesterfield loan 2265CHESTERF which is also late. Something didn't make sense and then I worked out what they had done. When phase 4 funded, they changed the Phase 3 end date from 1feb to 20apr to coincide with the phase 4 end date and so penalty interest only kicks in from the 20apr. Same applies for previous phases, didn't check.
Not sure what to make of that, tough luck probably if your loan has more tranches to be funded after the loan end date?
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cb25
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Post by cb25 on Apr 22, 2021 13:25:26 GMT
I was getting mixed up with this Chesterfield loan 2265CHESTERF which is also late. Something didn't make sense and then I worked out what they had done. When phase 4 funded, they changed the Phase 3 end date from 1feb to 20apr to coincide with the phase 4 end date and so penalty interest only kicks in from the 20apr. Same applies for previous phases, didn't check.
Not sure what to make of that, tough luck probably if your loan has more tranches to be funded after the loan end date?
My pledge was on phase 4 of 4.
Just (14.26) received a message in my inbox about this loan, having sent CP a message about an hour ago asking if lenders would be receiving an update on this loan given it's past its loan end date.
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Post by brummiefred on Apr 22, 2021 13:29:08 GMT
Suspect that this is Barlborough for which message just received.......running late.....July/August.....penalty interest
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Post by multiaccountmanager on Jun 8, 2021 14:59:22 GMT
I was getting mixed up with this Chesterfield loan 2265CHESTERF which is also late. Something didn't make sense and then I worked out what they had done. When phase 4 funded, they changed the Phase 3 end date from 1feb to 20apr to coincide with the phase 4 end date and so penalty interest only kicks in from the 20apr. Same applies for previous phases, didn't check.
Not sure what to make of that, tough luck probably if your loan has more tranches to be funded after the loan end date?
I didn't realise the end dates were changed like this. I am in 2 phases of the chesterfield loan and they end on 20 April and 1st June.
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littleoldlady
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Post by littleoldlady on Jun 8, 2021 17:00:59 GMT
CP are a good platform, but IMO they play fast and loose with the end dates and the term lengths. Sometimes when they give an extension they write a new loan and give lenders the chance to exit, but other times they just extend it. Sometimes they charge penalty interest and other times not. Either way it makes a mockery of their stats page where the average loan length is a complete fiction, if you equate the loan to the project, partly (possibly largely) due to Covid and government regulations protecting borrowers. A project which lasts for two years and is continuously funded by CP lenders secured by the same property, is in my mind a two year loan, not two separate loans of one year.
Having said that, as far as I can tell their extensions always seem to be in the best interests of lenders. I just wish they were a bit more transparent in their stats.
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metoo
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Post by metoo on Jun 10, 2021 18:06:58 GMT
If lenders choose to fund a new loan, then it is a new loan, just as much as it would be if refinanced by another institution. I don't see that as fiddling the statistics.
If a project takes longer for whatever reasons, but remains financially viable, it is not an issue. Typically extending a term makes a project more marginal for the borrower, and more difficult to extend finance unless cash is injected, but in some cases enhanced planning may be obtained during the loan that make it more profitable. Even if profit is eroded, if the loan was not too large to begin with it doesn't matter. It may make sense to market properties for longer rather than sell them at a knocked down priced just to repay the loan during the original term. Then an exit bridge can make sense. Other times, genuine issues arise on the site. Provided it can be managed financially, there is not a problem.
The issue in development lending is when a project becomes unviable. If the LTV is getting to high with rolled-up interest then a refinance is not an option. Then with a sensible project and good management it is usually still possible to exit successfully.
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littleoldlady
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Post by littleoldlady on Aug 4, 2021 12:09:45 GMT
If lenders choose to fund a new loan, then it is a new loan, just as much as it would be if refinanced by another institution. I don't see that as fiddling the statistics. . I agree, but that is not what happened in this loan (and others). At the time of the first tranche in Jun 2019 the project length was 15 months. Since then the end date has been pushed back a number of times and 3 further tranches raised. The last one was said to fund the completion of the project. IMO the early loans are coming up to a year late but you would not know this from the stats page. There has been no opportunity to exit this loan to date. I understand that HNW are taking a second charge to fund the completion of the project. In one way this is reassuring as if their DD suggests it is good for a second charge then CP's first charge must be even better. However the curious mind wonders how to reconcile it with CP's commentary. There were valid reasons for the delays and I think CP have acted in my best interest throughout. That is not my point, I was addressing the OP. If you use CP it may be best to invest and forget. So far at least you would have been very satisfied and not had any of the concerns that you would have if you tried to follow what is going on.
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littleoldlady
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Post by littleoldlady on Dec 17, 2021 18:13:08 GMT
If these flats were as near completion as the latest update says I would have expected them to be up for sale by now, but I can't find any marketing for them. Anyone?
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liso
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Post by liso on Dec 18, 2021 13:02:11 GMT
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