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Post by Ace on Jul 19, 2021 13:03:37 GMT
This loan is the only one on Loanpad that is currently in default and is the only one being serviced by the ICF. It seems to be a bit of a flea in the ear for Loanpad. Today it was given its 16th extension! My very rough calculation shows that it's now been extended for a total of about 27 months!! Almost every one of those extensions had predicted that the loan would complete shortly. This situation was somewhat forewarned by the great MrCLondon in his post nearly two years hence (I wonder what happened to him. Hope he's OK. His posts were ones I learned to pay great attention to). See here. I don't feel there's any need to panic. To put it in perspective, it represents less than 0.5% of funds on the platform. So even a total loss wouldn't be more than an irritation, and at less than 20% LTV now that works have completed, a sale of any one of the 4 apartments should be sufficient to repay the loan. I do think that Loanpad should provide a more detailed update on this one though. |
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liso
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Post by liso on Jul 19, 2021 17:32:30 GMT
Disappointing. Clearly something has gone very wrong with monitoring the progress of this development.
And disappointing too that no explanation has been given.
I hope this is just a blip, and not the start of a trend.
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Post by Loanpad on Jul 19, 2021 18:09:38 GMT
Hi Ace and lisoThis loan has indeed been extended many times. Unfortunately due to personal issues the borrower was unable to complete the development of 4 new apartments. An LPA Receiver was thereafter appointed in mid-2020 to have the development completed. This has now been done and sales of two of the apartments have already been agreed with legals progressing. We therefore do expect the loan to be repaid in the coming weeks. We think that this loan demonstrates a sensible recovery strategy to ensure the best outcome for all parties, including the Borrower as there was no prejudice to Lenders. The Loanpad loan is £150,000 (plus interest) against a value of c. £800,000. In terms of the updates for this loan, having reviewed them it is fair to say they could have been a lot more specific and detailed considering the number of extensions and of course we will try and improve on that front. All the best |
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Post by Ace on Jul 19, 2021 18:28:19 GMT
Thanks for replying Loanpad. All things considered, that's about the best response I could have hoped for. I'm glad you are doing the best for the borrower in these circumstances. Keep up the good work. |
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ilmoro
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Post by ilmoro on Jul 19, 2021 20:16:50 GMT
Loanpad what exactly is the security here? I can see Handf have a debenture over the borrower co though no receiver has been appointed. Therefore I assume the loan is in the personal name of the borrower. I cant see any charges in favour of loanpad or loanpad security trustee, except two joint charges with handf, so how exactly are lenders interests secured
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liso
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Post by liso on Jul 19, 2021 20:46:46 GMT
Thanks Loanpad for the speedy response and update. Appreciated. |
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Post by Loanpad on Jul 20, 2021 9:51:59 GMT
Loanpad what exactly is the security here? I can see Handf have a debenture over the borrower co though no receiver has been appointed. Therefore I assume the loan is in the personal name of the borrower. I cant see any charges in favour of loanpad or loanpad security trustee, except two joint charges with handf, so how exactly are lenders interests secured Hi ilmoro - we may have misunderstood your question but the primary security consists of the charges against the property at Land Registry. This loan will probably be cleared in full from the sale of the first apartment.
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ilmoro
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Post by ilmoro on Jul 20, 2021 10:13:29 GMT
Loanpad what exactly is the security here? I can see Handf have a debenture over the borrower co though no receiver has been appointed. Therefore I assume the loan is in the personal name of the borrower. I cant see any charges in favour of loanpad or loanpad security trustee, except two joint charges with handf, so how exactly are lenders interests secured Hi ilmoro - we may have misunderstood your question but the primary security consists of the charges against the property at Land Registry. This loan will probably be cleared in full from the sale of the first apartment. Are those charges in favour of Loanpad or Handf? If the latter how are lenders secured if Loanpad isnt a party to the charge? Assignment? It is also my understanding that charges against a corporate borrower need to be register at Companies House. I can only see a debenture in favour of Handf but no fixed charge. (Ox**** Dev Gr**p Alp**) My second point was more general in relation to the whole loan book. Namely I cant find any charges that appear to be in favour of Loanpad/LST at Companies House which I would expect to see as per above. So how are the interests of lenders secured over & above the security held by the partner?
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dave4
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Post by dave4 on Jul 20, 2021 10:44:04 GMT
Following with interest.
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Post by Loanpad on Jul 20, 2021 10:49:23 GMT
Hi ilmoro – the charges at Land Registry and jointly held by Loanpad and Handf/other partners and registered in joint names. The charges at Companies House are also jointly held – however the assignment (into joint names) is only “registered” if the borrower’s obligations change. The CH charges are specifically linked/tied to the property in question which is ultimately secured at Land Registry. Therefore in order to remove the CH charge the LR charge would need to be removed first which of course requires Loanpad's consent. On the specific loan you have referenced the CH charge can be found here find-and-update.company-information.service.gov.uk/company/10879323 Link does not appear to work - but if you type in the company name or number there you should find it. |
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Post by Badly Drawn Stickman on Jul 20, 2021 10:52:57 GMT
Hi ilmoro – the charges at Land Registry and jointly held by Loanpad and Handf/other partners and registered in joint names. The charges at Companies House are also jointly held – however the assignment (into joint names) is only “registered” if the borrower’s obligations change. The CH charges are specifically linked/tied to the property in question which is ultimately secured at Land Registry. Therefore in order to remove the CH charge the LR charge would need to be removed first which of course requires Loanpad's consent. On the specific loan you have referenced the CH charge can be found here find-and-update.company-information.service.gov.uk/company/10879323/charges that link seems not to be doing what you hoped it would.
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ilmoro
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Post by ilmoro on Jul 20, 2021 11:05:57 GMT
Hi ilmoro – the charges at Land Registry and jointly held by Loanpad and Handf/other partners and registered in joint names. The charges at Companies House are also jointly held – however the assignment (into joint names) is only “registered” if the borrower’s obligations change. The CH charges are specifically linked/tied to the property in question which is ultimately secured at Land Registry. Therefore in order to remove the CH charge the LR charge would need to be removed first which of course requires Loanpad's consent. Link does not appear to work - but if you type in the company name or number there you should find it. Thanks for the explanation. There have been issues with other platforms where security wasnt registered or registered properly which only came to light on questioning so I just needed to check. Registration at CH has been an issue as it makes the security open to challenge & potentially unenforceable even with LR filling, several occasions where it required court applications to rectify. That was indeed the charge I had found. The other slight concern is that another platform had loans on a similar basis to Loanpad set up, at least one of which didnt turn out well. That was secured via assignments and sub charges whioch made things very complicated so it is good to know the security is jointly held
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withnell
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Post by withnell on Jul 23, 2021 8:31:25 GMT
Hi ilmoro – the charges at Land Registry and jointly held by Loanpad and Handf/other partners and registered in joint names. The charges at Companies House are also jointly held – however the assignment (into joint names) is only “registered” if the borrower’s obligations change. The CH charges are specifically linked/tied to the property in question which is ultimately secured at Land Registry. Therefore in order to remove the CH charge the LR charge would need to be removed first which of course requires Loanpad's consent. On the specific loan you have referenced the CH charge can be found here find-and-update.company-information.service.gov.uk/company/10879323 Link does not appear to work - but if you type in the company name or number there you should find it. - just want to confirm that this is the correct borrower entity. Given the date of the charge (Jan 2019), I would expect the filed accounts for the periods ending July 2019 and July 2020 to show the loan balance, but they show the company to be dormant, with only £1 of unpaid share capital. Surely to ownership of the property, and the offsetting loan in place, should be visible on the balance sheet?
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Post by indexfund on Jul 23, 2021 11:16:41 GMT
Fascinating thread. As someone who has manoeuvred through a great many P2P platforms over many years, it is so great to see this forum holding these organisations to account. LoanPad in particular seem to have a slightly unique approach, a little like GrowthStreet was, with lower rewards from lower risks which I like in these times. My plan is to have LP as my sole surviving P2P investment, so this thread is especially important to me.
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Post by Loanpad on Jul 26, 2021 14:49:26 GMT
Hi ilmoro – the charges at Land Registry and jointly held by Loanpad and Handf/other partners and registered in joint names. The charges at Companies House are also jointly held – however the assignment (into joint names) is only “registered” if the borrower’s obligations change. The CH charges are specifically linked/tied to the property in question which is ultimately secured at Land Registry. Therefore in order to remove the CH charge the LR charge would need to be removed first which of course requires Loanpad's consent. On the specific loan you have referenced the CH charge can be found here find-and-update.company-information.service.gov.uk/company/10879323 Link does not appear to work - but if you type in the company name or number there you should find it. - just want to confirm that this is the correct borrower entity. Given the date of the charge (Jan 2019), I would expect the filed accounts for the periods ending July 2019 and July 2020 to show the loan balance, but they show the company to be dormant, with only £1 of unpaid share capital. Surely to ownership of the property, and the offsetting loan in place, should be visible on the balance sheet? yes it is the correct entity and it would seem that they may need to be updated. Please note however that the borrower’s filing of accounts and the accuracy thereof is a matter for the borrower and their accountants as it does not impact the security on this loan in any way.
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