adrianc
Member of DD Central
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Post by adrianc on Feb 5, 2019 18:16:25 GMT
So reading between the lines, the security property has been sold, and we're down to the PG/legals to get as much of the remainder as possible back. But £400k for a house plus 23 acres in that part of the world does seem a little... low.
I guess the remainder's gone in fees... Doubt I'll see my 1p "Nah, avoid" placeholder again. <sigh>
Yesterday's Today's update hasn't made it to the updates tab of the loan page.
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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 Feb 5, 2019 18:32:12 GMT
More to the point Lendy have once again changed how they are repaying default loans compared to their t&C's which stipulate interest is paid ahead of capital.
So
PBL179 interest paid ahead of capital?
DFL035 interest paid ahead of capital
DFL025 interest paid ahead of capital
PBL163 capital paid ahead of interest
PBL068 capital paid ahead of interest
None of these loans launched after the t&C's changed so that's not the determinant
PS what happened to the 950k this was allegedly being sold for, £450k of fees seems excessive (agent ranks ahead of lenders on new t&C's behind capital on old)?
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Post by wanderer on Feb 5, 2019 19:20:22 GMT
31% recovery is a real punch to the gut. I was expecting to take a loss on this one but ~70% is ridiculous. In the email it says they are taking action against the valuer, don't hold out much hope for that (are there any other Lendy cases when they have successfully sued the valuers? not aware of any). And as you say ilmoro, total inconsistency in whether interest or capital gets repaid first, it's a lottery.
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Post by mrclondon on Feb 5, 2019 19:23:02 GMT
I've added a load of links to DD Central for those with access.
It was advertised on rightmove from October 2018 at £1.2m (now marked Sold STC) so the alleged offer of £950k fits (20% discount from asking price).
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sarahcount
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Post by sarahcount on Feb 5, 2019 20:31:11 GMT
... Doubt I'll see my 1p "Nah, avoid" placeholder again. <sigh>...
Remind me to stop doing that "1p Nah Avoid Placeholder' thing in future. #LondonLoan
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jaswells
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Post by jaswells on Feb 6, 2019 1:09:48 GMT
There is the possibility here that 400k has been spent on the recovery process, if so how?. The other alternative is that they have only received a fraction of the sales proceeds, if so why? More questions than answers which often seems to be the case in p2p world.
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rocky1
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Post by rocky1 on Feb 6, 2019 4:37:29 GMT
In the next update could the ERT explain to us exactly the pecking order on any future recoveries from this disaster of a loan book.we have already been shafted by lendy and these borrowers and now due to lendys lncompetance,greed and many other failings we are being shafted again right to the end.surely our capital return should come first before lendy take anything more. rewarding themselves for failure. we should have a breakdown of all these recovery costs on every loan and who it is going to and whether we are being charged fairly.i will be glad when this is all over in a few years time and can finally close the door on lendy once and for all.even though I will be many thousands of pounds out of pocket this p2p business really has been an eye opener as to what people will do to part you from your hard earned savings.
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Post by charliebrown on Feb 6, 2019 5:46:24 GMT
31% recovery is a real punch to the gut. I was expecting to take a loss on this one but ~70% is ridiculous. In the email it says they are taking action against the valuer, don't hold out much hope for that (are there any other Lendy cases when they have successfully sued the valuers? not aware of any). And as you say ilmoro, total inconsistency in whether interest or capital gets repaid first, it's a lottery. I think we’ve all been pushing LY very hard to sort out their mess of a loanbook and give us back (some of) our invested capital. LY do seem to be driving things to a conclusion which I am happy to see. Not so happy to see 70% capital losses but I think we all knew many of these disaster loans would have this type of outcome. ALL my LY loans (I have many) have now defaulted and if they average a 30% recovery then even taking into account lifetime interest received I will have to write off a 6 figure sum. I curse the day I ever heard about this “investment” and despite the pain felt I do want to see LY resolve all these disaster loans so I can draw a line under this mess and tell myself I will never be this stupid with my hard earned money again.
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adrianc
Member of DD Central
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Post by adrianc on Feb 6, 2019 8:00:33 GMT
In the next update could the ERT explain to us exactly the pecking order on any future recoveries What do you mean by that? Are you suggesting the ERT should prioritise certain loans over other loans? Or that the administrators of each borrower should prioritise Lendy over other creditors even if that doesn't fit with the statutory distribution rules?
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Monetus
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Post by Monetus on Feb 6, 2019 8:13:36 GMT
I'm not in this one but blimey... 31% capital recovery on a fairly standard 1st charge property bridging loan? Platforms like BC manage these types of loans day-in day-out and with zero capital and interest losses so far.
Clearly the valuation was on the high side but I'm trying to work out how presumably 400k has been spent on recovery and fees?
To quote Saving Stream: "We are also lending on the valuation as of today, not taking into consideration the uplift in value for the refurb. This is a bridging loan and he can do what he wants with the funds to a degree. We would prefer him to spend the surplus plus his own funds on the refurb but we are content to lend 70% against todays valuation."
There's nothing particularly complex about this loan and no development involved so this seems like an especially poor result.
This surely doesn't bode well for the more complex loans!
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Post by picanto on Feb 6, 2019 8:52:39 GMT
Do we actually know if they're isn't more capital to be repaid to investors from the sale of the property? Perhaps I'm being naive but my understanding was, based on the recent update, that the loan has been fully repaid or at least the capital has been fully repaid. If Lendy only recovered 31% of the capital then they would (or at least should) state that only a partial recovery has been made but they said the loan has been repaid. However this won't be repaid in one full installment and a repayment breakdown will be published showing the timescale of repayments?
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Post by brightspark on Feb 6, 2019 8:56:28 GMT
31% recovery is a real punch to the gut. I was expecting to take a loss on this one but ~70% is ridiculous. In the email it says they are taking action against the valuer, don't hold out much hope for that (are there any other Lendy cases when they have successfully sued the valuers? not aware of any). And as you say ilmoro, total inconsistency in whether interest or capital gets repaid first, it's a lottery. I think we’ve all been pushing LY very hard to sort out their mess of a loanbook and give us back (some of) our invested capital. LY do seem to be driving things to a conclusion which I am happy to see. Not so happy to see 70% capital losses but I think we all knew many of these disaster loans would have this type of outcome. ALL my LY loans (I have many) have now defaulted and if they average a 30% recovery then even taking into account lifetime interest received I will have to write off a 6 figure sum. I curse the day I ever heard about this “investment” and despite the pain felt I do want to see LY resolve all these disaster loans so I can draw a line under this mess and tell myself I will never be this stupid with my hard earned money again. I don't think you should be putting all the blame on yourself. In financial matters there always has to be an element of trust. Investors to varying degrees relied on Lendy to run their business responsibly. i.e. in summary to present sound loans for investment. Lendy consistently failed miserably to meet its side of the bargain and lenders are taking the consequences. I hope after swallowing this bitter pill that you are able to go forward and in retrospect will view the matter sanguinely.
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Post by wanderer on Feb 6, 2019 9:50:44 GMT
Do we actually know if they're isn't more capital to be repaid to investors from the sale of the property? Perhaps I'm being naive but my understanding was, based on the recent update, that the loan has been fully repaid or at least the capital has been fully repaid. If Lendy only recovered 31% of the capital then they would (or at least should) state that only a partial recovery has been made but they said the loan has been repaid. However this won't be repaid in one full installment and a repayment breakdown will be published showing the timescale of repayments? No mention of that in the email to investors. Not sure if i'm allowed to quote directly from it but it specifically says only 31% of the original capital loan has been repaid and no mention of any further installments (except any unspecified return from legal action).
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Post by picanto on Feb 6, 2019 10:02:51 GMT
Do we actually know if they're isn't more capital to be repaid to investors from the sale of the property? Perhaps I'm being naive but my understanding was, based on the recent update, that the loan has been fully repaid or at least the capital has been fully repaid. If Lendy only recovered 31% of the capital then they would (or at least should) state that only a partial recovery has been made but they said the loan has been repaid. However this won't be repaid in one full installment and a repayment breakdown will be published showing the timescale of repayments? No mention of that in the email to investors. Not sure if i'm allowed to quote directly from it but it specifically says only 31% of the original capital loan has been repaid and no mention of any further installments (except any unspecified return from legal action). So a sale of £950k had been agreed but only £400k of that returned to investors? I know there are fees that need to be taken from the original sale but investors receiving less than 50% of the sale price is ridiculous!
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sl75
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Post by sl75 on Feb 6, 2019 10:30:40 GMT
No mention of that in the email to investors. Not sure if i'm allowed to quote directly from it but it specifically says only 31% of the original capital loan has been repaid and no mention of any further installments (except any unspecified return from legal action). So a sale of £950k had been agreed but only £400k of that returned to investors? I know there are fees that need to be taken from the original sale but investors receiving less than 50% of the sale price is ridiculous! Perhaps they took the decision on our behalf to set aside a big chunk to cover legal costs of recovering the rest?
I await Lendy's more detailed explanation...
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