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Post by charliebrown on Oct 15, 2017 2:42:38 GMT
If you think the Gloucestershire loans look bad wait for I*** of W**** where there is an alleged 75% fall in value and no explanation from Lendy yet forthcoming. That was a loan for £3.25 million. Once costs and fees have been deducted from any recovery the Gloucestershire loans (however they turn out) might look rosy in comparison. There seems little doubt the PF will soon become exhausted and may well cease to exist. The only question is which loans (and which lucky investors) will be in line to benefit. Please form an orderly queue. The list goes on, Exeter, Marylebone, to name 2 more. Investors caught up in these loans seem to be faced with months or years of wrangling and an ultimate heavy % loss of capital. That’s why I asked is LY able to keep the confidence of investors with these multiple and major failings.
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Brainer
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Post by Brainer on Oct 16, 2017 13:18:38 GMT
There seems little doubt the PF will soon become exhausted and may well cease to exist. The only question is which loans (and which lucky investors) will be in line to benefit. Please form an orderly queue. How do we think it will work? Will there literally be a queue if the PF becomes depleted, so that as/if it gets topped up it will just immediately pay out the next in line? Or could we end up in a situation where it depends how lucky you are with the end timing of your troubled loan? E.g.: Gloucestershire has a shortfall - depletes PF IoW has a shortfall - nothing in PF, crystallised loss for investors A period of calm, PF replenished Exeter has a shortfall - PF covers it
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mary
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Post by mary on Oct 16, 2017 13:38:23 GMT
There seems little doubt the PF will soon become exhausted and may well cease to exist. The only question is which loans (and which lucky investors) will be in line to benefit. Please form an orderly queue. How do we think it will work? Will there literally be a queue if the PF becomes depleted, so that as/if it gets topped up it will just immediately pay out the next in line? Or could we end up in a situation where it depends how lucky you are with the end timing of your troubled loan? E.g.: Gloucestershire has a shortfall - depletes PF IoW has a shortfall - nothing in PF, crystallised loss for investors A period of calm, PF replenished Exeter has a shortfall - PF covers it This being Lendy, your guess is as good as any, but we certainly won't be told (transparency not being in the Lendy dictionary). However given the expected shortfalls you mention, plus the Castle, Scottish Estate, and potentially others that we don't yet know about, unless Lendy can get away another £200m of loans soon there is no possibility that the PF will cope. Obviously, recovery can take a very long time so the day of reckoning may be some way off.
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SteveT
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Post by SteveT on Mar 3, 2018 11:30:59 GMT
It's quite a while since I paid attention to these loans, not holding them, but yesterday's update caught my eye:
"After further negotiations with the third party acquiring the property, terms have now been finalised. The valuation to support the third party’s finance will now be instructed and upon receipt of the final valuation report, the new facility documentation will be prepared"
From the phrasing of the final bit, I wonder if Lendy is planning to provide the purchaser with this "new facility" themselves? That could be quite a hard sell, although I may be reading too much into it!
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r1200gs
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Post by r1200gs on Mar 3, 2018 13:37:49 GMT
It's quite a while since I paid attention to these loans, not holding them, but yesterday's update caught my eye: " After further negotiations with the third party acquiring the property, terms have now been finalised. The valuation to support the third party’s finance will now be instructed and upon receipt of the final valuation report, the new facility documentation will be prepared" From the phrasing of the final bit, I wonder if Lendy is planning to provide the purchaser with this "new facility" themselves? That could be quite a hard sell, although I may be reading too much into it! Nah, they wouldn't dare, would they? 
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oldgrumpy
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Post by oldgrumpy on Mar 3, 2018 14:03:29 GMT
They could dump much (or all) of it into one of their bonds, about which we read very little, then they could pay far less interest, have a good margin to cover subsequent problems, and lenders wouldn't even have to be told.
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mikes1531
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Post by mikes1531 on Mar 4, 2018 0:10:09 GMT
But how are Lendy going to get a valuation that's large enough to support a loan large enough to fund the repayment of all the capital/interest/fees that are outstanding on these loans?
Will they be making a 100+% LTV loan using those Lendy bonds where their investors won't be told the LTV? Or perhaps they're not intending to repay all that's outstanding? If Lendy are the new lender, and it's not going to be a full repayment, how can they avoid a massive conflict of interest?
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Post by masquedefer on Mar 9, 2018 6:44:01 GMT
See below
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Post by masquedefer on Mar 9, 2018 7:03:04 GMT
But how are Lendy going to get a valuation that's large enough to support a loan large enough to fund the repayment of all the capital/interest/fees that are outstanding Easy. Just ask the original valuation surveyor to reconfirm his original over optimistic valuation.
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Post by masquedefer on Mar 10, 2018 9:42:03 GMT
Easy. Just ask the original valuation surveyor to reconfirm his original over optimistic valuation. Whilst my preceding remark was made in jest, it should be possible to obtain a new valuation justifying say 70% of the original valuation which would then enable a sale and new finance so lenders of the first loans get most of their capital back. .......Then say a year later the new loan could be valued at 70% of the latest valuation so that another new loan can be set up and the newer lenders will get most of their money back And so on ad Infinitum until the valuation achieves a greater resemblance to true market value. Stop me if I am becoming a little cynical these days. However on reflection though it sounds a little ponzi-ish but the only people who would be losing out are the borrowers who have being commissioning the inflated valuations in the First place. Paul@Lendy worth some consideration? Stop me right now this is becoming too cynical!
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webwizard
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Post by webwizard on Mar 16, 2018 18:11:40 GMT
Update from 2 weeks ago: After further negotiations with the third party acquiring the property, terms have now been finalised.
Update from today: The third party prospective purchaser has now pulled out and, in light of this, our LPA Receiver is negotiating with the party initially interested in acquiring the property.
Well, another fine episode of the Lendy soap opera, getting there..., nearly there..., all agreed..., last bit to discuss..., oops it's all over......
I don't doubt Lendy are accurately reporting the updates, and this is very much an issue of the potential purchaser, and not the fault of Lendy, but something about the property has frightened them off.
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Post by harryvederci on Mar 16, 2018 19:52:07 GMT
at this rate they'll be lucky to get a sale by August
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Post by dualinvestor on Mar 16, 2018 20:07:26 GMT
TBH a simple Google search would reveal the tortured history of trading at the property. The purchasers own eyes it idiosyncrasies and potential to become a money pit and his common sense tell him to walk away.
I am surprised if they get any sensible/serious offers.
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Liz
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Post by Liz on Mar 17, 2018 0:05:18 GMT
TBH a simple Google search would reveal the tortured history of trading at the property. The purchasers own eyes it idiosyncrasies and potential to become a money pit and his common sense tell him to walk away. I am surprised if they get any sensible/serious offers. Maybe a consortium could pick this up cheap with cheeky offer. I will put 50% in or £5k.
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rgog
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Post by rgog on Mar 17, 2018 15:23:07 GMT
If it sells I will be surprised, if it sells for enough for us to get our capital back I will fall off my chair! Outstanding interest? Yer 'avin' a Giraffe!
I think I will still be waiting/reading this thread this time next year (and possibly the year after!).
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