mikes1531
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Post by mikes1531 on Apr 14, 2015 14:11:08 GMT
Interesting. It's still listed on Countrywide Property Auctions 29th April Sheffield catalogue. As to whether the sale proceeds will cover capital and interest - I wouldn't have thought that would be a problem with the guide price they're quoting. More than interesting - is it possible to auction a property without vacant possession. Certainly the guide price makes everything look safe on the financial front. I suppose it ought to be possible to do the auction before the vacant possession is effective. It will take some time to do all the legal work after the auction before exchange would be possible, and SS might have VP by then. Even if they didn't, they might be able to exchange with a condition that completion couldn't happen until VP was obtained. (I'm just speculating about that. I haven't a clue whether or not that's feasible.) Can someone remind me whether the auction fee would come out of, or on top of, the auction price? If the final bid price were to be the guide price, is that what SS receive, or do they have to pay the auction fee -- 10%?? -- out of that? The face amount of the loan is 73% of the guide price, and the first six months of interest were retained at drawdown, but there have been a couple more months elapsed since the last of that was paid out, and there likely will be a couple more months of accrued interest by the time the sale completes. Lets hope the bidding ends somewhere close to the guide price.
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Post by Deleted on Apr 14, 2015 14:52:18 GMT
It's common to sell an interest in property without vacant possession (i.e. when there is a tenant in it), but I don't see how anybody could sell an interest in property until they have got it. As I understand the situation, Lendy has a 1st charge over this property but as with any repossession, possession can only be granted by a Court order and until the court formalities are completed Lendy doesn't have an interest to sell as far as I can work out.
I don't think selling something subject to x, y or z happening at some point in the future would be satisfactory to a purchaser and (even if it were legally possible) I would have thought the uncertainty would depress the amount any purchaser would bid?, i.e. reduce value.
In terms of the auction fees, these will come out of the sale price . Fees vary but I wouldn't expect anything as high as 10%. Perhaps 2.5% or 3%?
So if, say, it sells for £230,000 and the auctioneers fees are 2.5% that would be gross sale proceeds of £230k less Lendy's legal fees less the 2.5% auctioneers fees which would be £5,750 in this example.
A bit more detail from SS about this one and what is happening would be helpful and reassuring to investors I think.
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Apr 15, 2015 18:06:42 GMT
More than interesting - is it possible to auction a property without vacant possession. Certainly the guide price makes everything look safe on the financial front. I suppose it ought to be possible to do the auction before the vacant possession is effective. It will take some time to do all the legal work after the auction before exchange would be possible, and SS might have VP by then. Even if they didn't, they might be able to exchange with a condition that completion couldn't happen until VP was obtained. (I'm just speculating about that. I haven't a clue whether or not that's feasible.) With an auction the exchange happens on the day, which includes payment of the exchange deposit monies (normally 10%) - all legals need to be sorted out prior to the auction. There is then an agreed time for completion that's set in advance - it's normally no more than 4 weeks, so SS would really have to be in a position to go through to completion by the time they auction, although I guess it might be possible to negotiate something else. Seems unlikely to me though.
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david42
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Post by david42 on Jun 15, 2015 16:18:38 GMT
PBL007 has just been removed from the list of live loans.
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ramblin rose
Member of DD Central
“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Jun 15, 2015 16:33:49 GMT
PBL007 has just been removed from the list of live loans. And capital and June interest have been returned/added to lender accounts. So, all's well that ends well on that one.
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Liz
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Post by Liz on Jun 15, 2015 16:52:48 GMT
Well spotted, I have reinvested it.
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pom
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Post by pom on Jun 15, 2015 17:01:07 GMT
thanks for the tip off  |
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star dust
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Post by star dust on Jun 15, 2015 17:02:16 GMT
Email just received "We are pleased to announce that PBL007 (our first loan default) has now been repaid in full. This process took roughly three months from the date of default to progress through the required legal stages and to facilitate a sale. Our valuation of this property was £260,000 and the price that the property was eventually sold for was £250,000. All investment capital, plus June's interest (15 days) for PBL007, has been credited to investor's accounts and is now available for reinvestment or withdrawal. For information Lendy was able to recoup all legal fees along with the extra interest costs incurred." Well done savingstream. |
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Liz
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Post by Liz on Jun 15, 2015 17:03:50 GMT
Yes just got email, great result.
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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 Jun 15, 2015 17:36:33 GMT
Well done savingstream . Lessons for several other platforms out there on how to manage a default. Manage it |
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Post by chrisuk on Jun 15, 2015 19:13:55 GMT
I have to admit, I am becoming more and more confident with 'Saving Stream' and I'm slowly increasing my investment.
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SteveT
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Post by SteveT on Jun 15, 2015 19:48:32 GMT
I have to admit, I am becoming more and more confident with 'Saving Stream' and I'm slowly increasing my investment. Same here. I emailed SS this morning (and received a very prompt reply from Tim) to ask about the status of the planned "Trust" loan ownership structure. His answer was that it's about 3 weeks away, although it will only be applied to new loans since the borrower agreements on existing loans can't be changed.
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webwiz
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Post by webwiz on Jun 15, 2015 20:53:43 GMT
Great result, even for people like me who were not invested in PBL07 as it demonstrates competence and gives assurance. The borrower also got some cash (I assume).
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gc
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Post by gc on Jun 16, 2015 10:33:39 GMT
I'm glad that this one got sorted.
Have they paid people back that have invested in this one? Also, ff one had invested in this specific loan and got out, are they not owed the interest they accrued whilst they invested or have I got that wrong?
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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 Jun 16, 2015 11:04:06 GMT
I'm glad that this one got sorted. Have they paid people back that have invested in this one? Also, ff one had invested in this specific loan and got out, are they not owed the interest they accrued whilst they invested or have I got that wrong? Yes, everything paid up. The interest was still being paid monthly so they only owed lenders interest for June. Anyone who sold out was only owed interest if they sold in June & only up until the point they put the loan on the SM which would have also been paid yesterday.
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