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Post by overthehill on Aug 25, 2021 8:11:44 GMT
Str* & Ho* - repaid early which is a shame. Still 13% for the 1st charge junior tranche at 63% ltv is another great result for investors.
I'm not that keen on the 2nd charge loans but I think LLI have been flying under the radar, bit like Proplend in the past, and new loans may be filling a lot quicker in the near future. But what the hell do I know.
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Post by overthehill on Oct 2, 2021 10:01:20 GMT
St Le* loan repaid, 2nd charge, was in default , 15% , 100% repaid record continues, good result for investors.
Last new loan was 16th aug, yep, not sure what's going on in the background but doesn't look sustainable in this format. I trust the main players have other revenue streams !
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Post by Deleted on Oct 2, 2021 11:50:17 GMT
Hi overthehill,
We are indeed delighted that the only defaulted loan in the loan book was repaid in full, where investors earned an annualised rate of 20.0% since the default was declared.
Total return for those that invested and held the loan until the loan repayment date is around 46%. During the same period, FTSE100 fell 6.43% as comparison (period: 28 September 2018 to 30 September 2021).
Although we prioritise return of capital over return on capital, it appears that investors are continuing earning market leading rates by lending on our platform whilst maintaining a no loss record (and have done so for around 4.5 years now). The returns generated on our platform, have on average outperformed most other major asset classes, which we are very proud of. Although please keep in mind that past performance is not a reliable indicator of future results.
We have several loans in various stages of assessment, and they will come through once they pass through our rigorous assessment, as we prioritise quality over quantity. Further, we have a long term view on the business.
In terms of viability of the business, we are on track to generate our first annual profit ever despite of increasing the team. We are also receiving significant interest from institutional capital providers due to the platform’s strong track record which should further boost profitability and long-term viability for the platform.
I hope that you will have a good weekend.
Filip
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Post by overthehill on Oct 15, 2021 15:18:53 GMT
Wa* Road, Greater London, 2nd charge, 14%, loan repaid 4 weeks late, 100% capital repaid still intact.
I don't pretend to understand the fine detail of 2nd charge rights over 1st charge holder but I do know that immediate legal action is necessary to protect the 2nd charge investment when the loan is late or defaulted. The 2nd charge needs to be repaid or bought out by the 1st charge holder or the property repossessed by legal force.
Fundingsecure were culpable in doing nothing with all their 2nd charges leading to the inevitable erosion of the 2nd charge security down to zero. The 1st charge holders' pot gets bigger so more interest for them, how many of them were acting morally ?
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Post by Deleted on Oct 16, 2021 10:06:11 GMT
Good morning overtheill,
Second charge loans are indeed riskier than first charge loans as the first charge holder is repaid prior to the second charge holder. Due to the higher risk with second charge loans, they also normally command a higher rate than first charge loans.
As with every property backed loan, to ensure the best outcome possible, emphasis is initially the assessment of the loan prior to draw down where factors such as the security property, valuation, borrowers’ creditworthiness, use of loan funds and exit plan etc are carefully considered.
Even if a loan goes through the initial assessment satisfactory and draws down, we know that things do not always go to plan (borrowers exit plan does not occur or the borrower become uncooperative etc) and therefore, depending on the specific situation, enforcement may be required.
There are no specific guidelines how to manage a second charge loan that goes into default and each situation is wholly unique. However, you are right that equity erosion (due to interest and fees accruing to the first charge holder are ranked ahead of the second charge loan) is an important factor to consider and it is possible to roughly estimate when it may occur (considering factors such as property value, type of property and what it is likely to be realised at in a distressed scenario, first charge lender’s interest and fees etc) although not guaranteed. We always model this scenario when considering a second charge loan. Although a model is only as good as its inputs.
Key take away is that each situation is wholly unique, whether it is a first or a second charge loan, and a range of factors must be considered when deciding on a specific course of action. It is very important to stay as close to the situation as possible to be able to see what is going on and take necessary actions when required or shall something unplanned occur. Therefore, it can be very labour intensive at times, depending on the specific situation. Having strong experience from dealing with these situations (as we have internally due to our previous extensive recovery experience), should ensure a better outcome to all parties but it is still not guaranteed.
Filip
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Post by overthehill on Jan 18, 2022 22:13:02 GMT
Mald* Road - another loan repaid in full with 9.5% ROI to maintain LandlordInvest's 100% repayment record !
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Post by overthehill on Jan 27, 2022 12:31:41 GMT
Riv* Court - senior and junior loan repaid in full with 7.5%/15% ROI to continue 100% repayment record
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Post by overthehill on Mar 20, 2022 16:21:16 GMT
Bell* Road - 7.3%. Repaid in full.
Forum account for Landlordinvest has been deleted !
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Post by overthehill on Apr 7, 2022 7:39:04 GMT
Sta* Terr* - 5.8% . repaid in full on time. Not many loans at this lowly rate.
100% record intact but I reckon they are still struggling to attract new investors, < 200 ?? A lot of investors seem to prefer cash drag, idle funds and 0% in some of the more established companies with their imperfect autolend or malfunctioning access accounts ? No names!
This is not meant to sound like an advert but note that although the minimum investment is 1000, currently you can sell any percentage of that on the SM for free.
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nick
Member of DD Central
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Post by nick on Apr 7, 2022 7:47:19 GMT
Sta* Terr* - 5.8% . repaid in full on time. Not many loans at this lowly rate.
100% record intact but I reckon they are still struggling to attract new investors, < 200 ?? A lot of investors seem to prefer cash drag, idle funds and 0% in some of the more established companies with their imperfect autolend or malfunctioning access accounts ? No names!
This is not meant to sound like an advert but note that although the minimum investment is 1000, currently you can sell any percentage of that on the SM for free.
I don't think there is an issue with them attracting new investors - new loans fill in minutes and the £1,000 minimum investment would be removed if this were the case. I think the issue is more attracting borrowers that meet their credit criteria. This seems to be the case across the board resulting in a general fall in loan rates.
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Post by Ace on Apr 7, 2022 8:04:20 GMT
Sta* Terr* - 5.8% . repaid in full on time. Not many loans at this lowly rate.
100% record intact but I reckon they are still struggling to attract new investors, < 200 ?? A lot of investors seem to prefer cash drag, idle funds and 0% in some of the more established companies with their imperfect autolend or malfunctioning access accounts ? No names!
This is not meant to sound like an advert but note that although the minimum investment is 1000, currently you can sell any percentage of that on the SM for free.
A small correction: you can't sell for free. There is a 0.5% SM sales fee.
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Post by overthehill on Apr 7, 2022 8:37:16 GMT
Sta* Terr* - 5.8% . repaid in full on time. Not many loans at this lowly rate.
100% record intact but I reckon they are still struggling to attract new investors, < 200 ?? A lot of investors seem to prefer cash drag, idle funds and 0% in some of the more established companies with their imperfect autolend or malfunctioning access accounts ? No names!
This is not meant to sound like an advert but note that although the minimum investment is 1000, currently you can sell any percentage of that on the SM for free.
A small correction: you can't sell for free. There is a 0.5% SM sales fee.
Thanks. Never noticed that before. Something made me think it was free and I've never looked at my transactions.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 7, 2022 12:11:38 GMT
Sta* Terr* - 5.8% . repaid in full on time. Not many loans at this lowly rate.
100% record intact but I reckon they are still struggling to attract new investors, < 200 ?? A lot of investors seem to prefer cash drag, idle funds and 0% in some of the more established companies with their imperfect autolend or malfunctioning access accounts ? No names!
This is not meant to sound like an advert but note that although the minimum investment is 1000, currently you can sell any percentage of that on the SM for free.
Until the FCA decides it doesnt like the SM. The problem with LLI has always been diversification ... less than 20 loans is borderline probably and thts compounded by the £1k min. I like the platform, Ive been in from the beginning but it just doesnt fit my current risk appetite. I dont have time to play FFF on the SM to pick up smaller holdings ... so regretfully Im (moving) out
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Post by overthehill on Apr 12, 2022 9:03:19 GMT
Bre* Road, repaid in full. Senior 7.5%, Junior 12%. Relentless 100% record but can't go for on forever!
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,789
Likes: 11,008
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Post by ilmoro on Apr 12, 2022 9:19:33 GMT
Bre* Road, repaid in full. Senior 7.5%, Junior 12%. Relentless 100% record but can't go for on forever!
The tester is Sc***l Rd which is nearly a year overdue and the long promised sale now appears to be less imminent than originally suggested.
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