izigor
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Post by izigor on Aug 12, 2017 19:12:21 GMT
Paul64, thanks for the update. It isn't the ideal news we wanted to hear, but it is better than no update. At least we know what's going on (or what's not going on). However, can you at least give us an indication on whether Lendy still has the principle as pointed out by cooling_dude. I.e, if there is the chance, then Lendy "to step in wherever necessary to complete these schemes to maximise the value at all stages subject to available funds"? It is important for us to know what's going on, so I hope you will continue to feed us more of that kind of update. But as above, we also do need to know that you are the type of company which stands up to its principle rather than chop and change at every corner. Thanks again.
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seeingred
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Post by seeingred on Aug 12, 2017 22:26:33 GMT
The points made above about stepping in to take over loans are well made.
DFL001 is a small number of fairly standard upmarket houses. No particular specialist skills should be required to finish the site - indeed the work so far looks to be of a very good standard. If this project cannot be 'saved' by being taken over and the work promptly contracted out, and without involving an army of expensive lawyers and receivers (etc) the prospects for other DFLs would not appear to be good.
We have an example on another platform where a development stalled almost at the last moment - that doesn't look good, especially as investors seem to have been left in the dark for rather too long.
In the case of DFL001 the autopsy needs to include why Lendy were not made aware much earlier of problems - and whether any IMS reports that were produced were in effect worthless.
A few more like this and reputation of property sector P2P loans could take quite a hit.
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Post by overlycautious on Aug 18, 2017 11:22:00 GMT
DFL001 is a small number of fairly standard upmarket houses. No particular specialist skills should be required to finish the site - indeed the work so far looks to be of a very good standard. If this project cannot be 'saved' by being taken over and the work promptly contracted out [...] Were I still living in Exeter, I for one would be very keen to buy one of these partially-finished houses at a reduced price and finish it to my own standard (a standard Barratt, David Wilson or Charles Church have no aspiration to). I am sure there are legal hurdles, but the self-build market is more advanced in Devon than where I am now, so there's a possible opening. Today's update from Lendy:
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ptr120
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Post by ptr120 on Aug 18, 2017 11:27:03 GMT
I think that this is confirmation that their previous statement that "It is our intention to step in wherever necessary to complete these schemes to maximise the value at all stages subject to available funds" is not in fact the case.
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seeingred
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Post by seeingred on Aug 18, 2017 11:55:15 GMT
There would be a huge number of legal issues in selling off half/quarter completed houses and having self-builders finish them off.
The site is very constrained as regards access and storage space for materials and this needs to be used logically by one builder to finish the lot. There are also issues of the costs of the new roadways, who pays for which bits etc. There is also space for a projected 4 more houses, with access through the existing development.
The work to date looks to be a very high standard - it needs the same standard to be applied to subsequent work or else the whole development could be compromised.
This is not looking good.
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Liz
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Post by Liz on Aug 18, 2017 12:04:19 GMT
Just confirms what I have said before, that supplementary tranche is not viable with the current LTV and interest accruing on the original loan.
I also still think they should only fund 60% LTV and save some wriggle room in case of costs overruns and delays.
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tombraider
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Post by tombraider on Aug 18, 2017 14:43:48 GMT
If we are the lenders.... should we not be told what the settlement figure offered is? I presume it's below the 70% ltv figure.
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fp
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Post by fp on Aug 18, 2017 15:15:14 GMT
I think that this is confirmation that their previous statement that "It is our intention to step in wherever necessary to complete these schemes to maximise the value at all stages subject to available funds" is not in fact the case. I'm sure LY have a business for that....
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TitoPuente
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Post by TitoPuente on Aug 18, 2017 16:40:35 GMT
DFL001. The number suggest this is the first development loan for Lendy... Good start! What a cock-up!
The positive side of this story is that it is showcasing Lendy's current skills, capabilities and commitment.
Reminds me of FC's highly experienced property team.
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Liz
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Post by Liz on Aug 18, 2017 16:46:36 GMT
DFL001. The number suggest this is the first development loan for Lendy... Good start! What a cock-up! The positive side of this story is that it is showcasing Lendy's current skills, capabilities and commitment. Reminds me of FC's highly experienced property team. Yes, it was the first DFL. How many more cock-ups will follow? Lendy have messed up, giving the borrower too much freedom and not monitoring progress fully. Hopefully the PF compensates all those left in, including the ones that bought all of my loan parts.
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seeingred
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Post by seeingred on Aug 18, 2017 17:00:53 GMT
If anyone conducts an autopsy on this one - they will want to know where the money went with so little to show for it on site and (presumably) with IMS reports during the term to say that all was well. Someone was not paying proper attention.
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rgog
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Post by rgog on Aug 18, 2017 17:23:32 GMT
If we are the lenders.... should we not be told what the settlement figure offered is? I presume it's below the 70% ltv figure. Other P2P sites provide all relevant information and put it to lender votes, about time LY were more open and adopted a similar approach.
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Brainer
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Post by Brainer on Aug 18, 2017 17:24:54 GMT
From the loan overview:
With regards to the build costs - we are providing 100% of these to the borrower. We will release these costs to the borrower in a tranched format (£500k at a time), following receipt of a report from the QS to confirm that the borrower has complied with his construction obligations. i.e he has spent £500k on the build, the value has increased by £x and we can lend him another tranche of £500k minus fees and interest for 12 months. In this way, we can control the overall amount we have at risk based on the status of the build programme.
Stellar job.
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beechside
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Post by beechside on Aug 18, 2017 17:25:00 GMT
The risk now is that, with the settlement refused, the lender borrower could just walk, taking with them anything on site. Stripping is not uncommon in these cases and that makes matters far, far worse for us. This happened near me when I lived in Surrey. The place then remained unsold for nearly two years, deteriorating. Don't know what it eventually sold for but it can't have been a lot.
Unless Lendy is serious about completing the project (and I don't know what the FCA would think about that), this could be scarier than the Saw franchise...
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Aug 18, 2017 17:37:41 GMT
If anyone conducts an autopsy on this one - they will want to know where the money went with so little to show for it on site and (presumably) with IMS reports during the term to say that all was well. Someone was not paying proper attention. They're all at it, get yerself over to FS and gen up on "The Whitehaven Fiasco." Once some Platforms have your money, they have your money - geddit!
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