GeorgeT
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Post by GeorgeT on Aug 18, 2017 17:57:12 GMT
The risk now is that, with the settlement refused, the lender 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... Yes and pouring concrete down the toilets and plumbing isn't unknown. So the borrower can have the last word and feel a bit better.
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mosaic
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Post by mosaic on Aug 18, 2017 18:44:45 GMT
And I thought I was a pessimist
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GeorgeT
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Post by GeorgeT on Aug 18, 2017 19:01:28 GMT
Well, that's interesting ...
An investor has just sunk £3,265 into this one on the SM - and no doubt bought out a few people.
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Liz
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Post by Liz on Aug 18, 2017 19:07:17 GMT
Well, that's interesting ... An investor has just sunk £3,265 into this one on the SM - and no doubt bought out a few people. Do you think you have a bit of OCD with regards the SM?
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TitoPuente
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Post by TitoPuente on Aug 18, 2017 20:08:33 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. This and other bits in the case could be interpreted as misrepresentation which is subject to a lawsuit against Lendy, hypothetically speaking.
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registerme
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Post by registerme on Aug 18, 2017 20:20:38 GMT
Well, that's interesting ... An investor has just sunk £3,265 into this one on the SM - and no doubt bought out a few people. A free tax play perhaps?
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seeingred
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Post by seeingred on Aug 18, 2017 20:43:03 GMT
The risk now is that, with the settlement refused, the lender 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. None of us here know exactly what has been going on and how (if at all) attitudes have hardened. I would be horrified if there was any 'stripping' of the DFL001 site - a lot of the value is in work undertaken to a very high standard and with quality components. And let us not forget that DFL002 is involved too - read the updates. Those apartments are all but complete and to a high standard. None have sold despite being with two competing agents. The potential for damage here is huge. The loans total £9 million. I very much hope that both lendy and the borrower will seek to ensure that whoever takes the site over can do so without undue acrimony - if indeed it comes to a takeover, sale by auction or whatever. I understand that the borrower is known locally to agents and he would not, I feel sure, wish his reputation to be damaged locally or indeed internationally. What has happened strikes me as being more a case of a perfectionist running out of money and maybe having had his head in the clouds as to what hi-spec unusual properties would be worth. I may be quite wrong - again I say that at this stage we don't really know all the details.
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Brainer
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Post by Brainer on Aug 19, 2017 11:40:52 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. This and other bits in the case could be interpreted as misrepresentation which is subject to a lawsuit against Lendy, hypothetically speaking. Same thought crossed my mind. Lendy clearly haven't done what they said they would. And the situation isn't entirely dissimilar to Whitehaven on FS if it can be shown Lendy were pumping out extra tranches based on work that hadn't been completed. Certainly a whole load of incompetence/negligence at work here, but without further detail it's hard to say whether the blame lays mostly with Lendy, the borrower or the QS - although they all seem at least somewhat culpable.
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seeingred
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Post by seeingred on Aug 19, 2017 17:46:48 GMT
Visited this site today. Nothing much seems to have changed from over a month ago. Masses of scaffolding, no work being undertaken, vegetation overtaking the roof trusses stored on site.
Site security has been improved - new chains and padlocks to secure the fencing sections togther.
Motorway noise not noticeable 3pm today (Saturday). Moderate westerly wind - this would tend to blow noise away from the houses. Main site looks much the same as a month ago.
The only machinery on site seemed to be a small JCB which had been used to help install the new fencing to the adjacent house.This is now up for sale also.
New (or additional) Estate Agent now seems to be taking the lead. Some prices reduced to £725,000. Snip?
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mary
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Post by mary on Aug 19, 2017 17:58:47 GMT
Visited this site today. Nothing much seems to have changed from over a month ago. New (or additional) Estate Agent now seems to be taking the lead. Some prices reduced to £725,000. Snip? Useful update. However (£725k x 10) - fees - cost to complete and this loan is under water even ignoring accrued interest. My only hope is that lessons are being learnt! PS. I'm only in for a token to see how this turn out, but if capital is lost it'll be my first and I will not be happy!
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seeingred
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Post by seeingred on Aug 19, 2017 19:56:20 GMT
My understanding at the moment is that quite a lot of work remains to be done apart from the obvious house construction and finishing and roadways etc. The site (or most of it) is below the level of an existing foul sewer and a pumping station is needed at the lower end of the site and all houses connected to this. I didn't see this item but may have missed it. In the big scheme of things........
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Aug 20, 2017 12:09:27 GMT
The risk now is that, with the settlement refused, the lender 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... You might want to correct this if it's a typo.
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tombraider
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Post by tombraider on Aug 21, 2017 14:30:24 GMT
It may be a subliminal message to those lenders in the vicinity suggesting how to mitigate any losses........ Unfortunately the SM sale queue is huge.... the Exeter loans need the provision fund to bail them out.... let's hope there's enough in there... and it's actually used. I'm stuck in 8 loans with Lendy when/if they repay the likelihood of my funds staying on the platform is pretty low. P2p will be a learning curve for all but this one worries me.
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Liz
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Post by Liz on Aug 21, 2017 14:36:40 GMT
It may be a subliminal message to those lenders in the vicinity suggesting how to mitigate any losses........ Unfortunately the SM sale queue is huge.... the Exeter loans need the provision fund to bail them out.... let's hope there's enough in there... and it's actually used. I'm stuck in 8 loans with Lendy when/if they repay the likelihood of my funds staying on the platform is pretty low. P2p will be a learning curve for all but this one worries me. The worry is that several defaulted loans will need bailing out by the PF, is there enough in it to cover them all. What happens if the PF can't pay up on a loan? Will investors leave in their droves, will Lendy change their model and ditch the PF? who knows.
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kaya
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Post by kaya on Aug 21, 2017 14:52:26 GMT
r********o sunk over 3k into it a few days ago. Now there is optimism for you!
Only 0.01p shifted today so far.
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