sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Oct 30, 2017 18:01:18 GMT
This borrower must be loaded, from the loan details, "The builder is very experienced having built over 500 units in the past 5 years". That's a minimum of £10m profit and probably nearer £50m or more. I do hope Lendy, impose the PG, take him to the cleaners and make him bankrupt if necessary.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Oct 30, 2017 18:19:36 GMT
This borrower must be loaded, from the loan details, "The builder is very experienced having built over 500 units in the past 5 years". That's a minimum of £10m profit and probably nearer £50m or more. I do hope Lendy, impose the PG, take him to the cleaners and make him bankrupt if necessary. Are you confusing the developer (aka the borrower) and the builder (who despite your calculated profits has gone bust.)?
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,428
Likes: 1,212
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Post by sqh on Oct 30, 2017 18:26:44 GMT
This borrower must be loaded, from the loan details, "The builder is very experienced having built over 500 units in the past 5 years". That's a minimum of £10m profit and probably nearer £50m or more. I do hope Lendy, impose the PG, take him to the cleaners and make him bankrupt if necessary. Are you confusing the developer (aka the borrower) and the builder (who despite your calculated profits has gone bust.)? Yes I might be, because I haven't been following this very closely. However, I assume the borrower is the same as PBL004, and the loan particulars state "Experienced property professional
with verified net worth of over £4.5m."
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seeingred
Member of DD Central
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Post by seeingred on Oct 30, 2017 21:47:48 GMT
PBL004 does indeed make interesting reading -
this is from the valuation document discussing the land for DFL001.
Access is to be approved through the current access lane to the north of the site, connecting with O** R**** L***. Based on your customer’s current title boundary, it is our view this will not be wide enough unless an agreement is reached with B******* C****** to utilise a slice of land on their western boundary. Alternatively, as part of the proposed outline consent a condition is placed on your customer’s land to provide two east to west access roads to the south of the site. These roads are to connect up with adoptable roads to be constructed by adjoining land owners as part of their planning consent. This will provide an alternative means of access to the site, however is reliant upon adjoining land owners developing their land in accordance with the outline consent. It is therefore subject to some uncertainty.
As per our assumptions above, we have assumed sufficient land will be included in the sale price to enable the proposed north access route.
You have informed us that you currently have a ‘firm’ offer on the table for £3,000,000. We understand from you that this offer includes sufficient land to effect the north access route.
DATED; 21 January 2015 - 18months before my time on Lendy, hence I regret I didn't know about this. Could have saved a lot of effort!
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izigor
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Post by izigor on Oct 30, 2017 22:48:19 GMT
I lost respect for the developer since he and his son has been trying to prevent access to the site for his gain alone against our loss. And that after we trusted him, lent him our money and he let us down. Now he is offering us capital loss, and he thinks we're going to revolt for his benefit. He needs to be sent to the cleaners and get a good smack of reality. My vote is firmly with Lendy.
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Post by p2plender on Oct 30, 2017 23:31:28 GMT
I'm with Lendy also here. Take 'Developer' to where he belongs, THE CLEANERS. He's messed up the project but appears to want to save his skin at the expense of Lendy investors.
Developed 500 properties allegedly yet borrowing money at probably around 20%....
Rinse time.
Any weakness shown by Lendy would more than set a precedent for other projects now in default.
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SteveT
Member of DD Central
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Post by SteveT on Oct 31, 2017 7:38:14 GMT
developer has managed the seemingly impossible; to unite forum members in wholehearted backing for Lendy's stance on these defaulted DFLs  (ps. I'm in full agreement with the consensus. If you want your development back, repay what you owe. Simples).
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bernard
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Post by bernard on Oct 31, 2017 7:53:01 GMT
Security enforced please. Lendy needs to make a strong statement of intent for other loans and borrowers on the platform. This may have a financial cost on these two loans (of which I am sadly in possession), but will considerably improve prospects on other current and future vexatious borrowers.
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r1200gs
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Post by r1200gs on Oct 31, 2017 8:23:03 GMT
I'm amazed that some peer to peer borrowers still have kneecaps.
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Post by dodgeydave on Oct 31, 2017 8:23:08 GMT
DFL 1 & 2 Existing investors will automatically ‘ rollover’ into these loans as we are effectively extending the ‘bridge’ element of the loan for a further 12 months and increasing the loan to provide build finance. We are seeking to borrow the interest to pay SS investors and the required funds for the construction element. Some of the properties can be expected to be sold off plan/before completion and therefore it is not certain whether 100% of the full build finance will be needed (good thing for SS as our risks will be therefore lower). 1. How will the DLF loan tranches be released (i.e. will every DFL loan tranche be available for pre-funding or will they just be dumped on the SM)?
We will create a new £500k tranche in the pipeline a week or two before it is required to control allocation fairly and to allow us to gauge funding availability. When we launch a new tranche, all investors in that particular tranche will be ‘blended’ into the loan and secured on a pari paru basis. 2. What method will be used to decide how much of the total loan is released at each stage?
Each tranche will be for £500,000 and will be payable to the developer on receipt of a satisfactory QS report. We will release this to SS investors for review before drawing down upon it. 3. It has been suggested that DFLs will reduce in value during development; how will the LTV be represented during these periods, and will updated valuations be provided during the redevelopment?
Re valuations through the build process, we will release them as we receive them. It is doubtful except if there is a macro market event, that we will amend the LTV downwards through the build. We are in it for the duration and will push it through to the GDV figure. 4. Because DFLs require due diligence from us investors other than just the LTV (and GDV), will we have further details in regards to the company behind the development, their track record of completing developments and further details of their strategy (i.e. Term of the project, estimated costs, etc.)?
At the moment, Lendy is making the underwriting decision for each loan i.e the developers capability, track record etc and hope that our investors will trust us enough to only provide the platform with high quality loans. We would not consider a loan to a developer without a successful track record. We do appreciate our investor’s due diligence and in future we will consider providing much more detailed analysis for you. On another note, most borrowers don’t like their name or business ‘ splashed all over the internet for the whole world to see’ so we are limiting that level of detailed information for now. We are aware that this might need to change in the future so just please bear with us whilst we work through these first ones and see how the dust settles. 5. If the company behind the development suddenly went bust, would the development site be sold "as is" or would SS look to have the site developed further to regain more of the loan value?
At the height of the last market collapse, many banks immediately called in all of their loans and refused to build out their projects to completion. In hindsight, most people now believe the fallout would have been much less if they had provided the funds to build out the schemes and would have had completed units to sell rather than half built sites. It is our intention to step in wherever necessary to complete these schemes to maximise the value at all stages subject to available funds. 6. Is the interest retained up front (the same as PBLs), and if so; is it retained up front on the entire loan or each tranche?
We are taking interest for the land element at day 1 to cover SS investors for the entire period. For the build cost tranches, we will take interest out of the tranche specifically for that tranche i.e £500k tranche 12 months @ c1% per month is £60k, the borrower gets £440k to use for construction for e.g. Each consecutive tranche we will take 12 months worth and thus build a pot for any overruns. 7. Will interest still be paid monthly?
Yes.
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seeingred
Member of DD Central
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Post by seeingred on Oct 31, 2017 9:48:16 GMT
"At the height of the last market collapse, many banks immediately called in all of their loans and refused to build out their projects to completion. In hindsight, most people now believe the fallout would have been much less if they had provided the funds to build out the schemes and would have had completed units to sell rather than half built sites. It is our intention to step in wherever necessary to complete these schemes to maximise the value at all stages subject to available funds."
Times past......
Times present:
The developer should release the ransom strip, which Lendy should all along have ensured could not be retained by him or his son. The original building workers should be re-employed where possible, the scaffolding should remain in place, the scheme should get finished asap, the developer may take a loss. That's his problem. If all this goes to law only the lawyers may win.
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seeingred
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Post by seeingred on Oct 31, 2017 10:09:28 GMT
I'm amazed that some peer to peer borrowers still have kneecaps. I'm even more amazed that some Platforms still have lenders... The exit turnstiles are jammed.
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Jeepers
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Post by Jeepers on Nov 1, 2017 8:09:21 GMT
AN i right in thinking DFL 1&2 are the best loans on the platform, paying 18% and guaranteed by Lendy?
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Nov 1, 2017 8:32:18 GMT
AN i right in thinking DFL 1&2 are the best loans on the platform, paying 18% and guaranteed by Lendy? If the second half of your question is correct then probably 'yes', assuming that they have the funds to repay, but AFAIK we do not yet know for sure if it is correct.
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Jeepers
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Post by Jeepers on Nov 1, 2017 8:42:25 GMT
If they don’t have the funds to repay then we risk platform failiure putting all other loans at risk so I would still say these are the best on the platform.
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