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Post by savingstream on Mar 28, 2014 17:22:13 GMT
Lendy Ltd is pleased to offer you our first property bridging loan. Here is a link to the Bridging loan particulars. We have a certified letter for the property valuation, viewable on the loan detail page, with the actual valuation report being available on the platform on Monday 31st March. The loan is not written at the moment, but we have £200k of underwriting in place and every confidence of funding the remainder via Saving Stream. Investors will earn 12%pa immediately upon commitment to this loan. If, for whatever reason, the loan does not fully fund, Lendy Ltd will cover the interest owed to all committed investors. We would kindly ask that any £5k+ deposits be made via BACS rather than GoCardless. If you have any questions regarding this loan please contact info@lendyfinance.com |
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mikes1531
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Post by mikes1531 on Mar 28, 2014 17:57:59 GMT
I have asked the following questions via email... - With respect to the bridging loan, is there a deadline by which the loan must be fully funded so that it can proceed? If so, when is that, please?
- With respect to the underwriting, if SS are successful at raising the remaining £255k from its lenders and the loan goes ahead, what will happen to the funds supplied by the underwriter? Will they stay in the loan for the full term? Or will the loan remain available for investment by ordinary SS lenders until all of the underwriter's investment could be released?
[My email was sent to SS because it also contained a question about my SS account, but I presume it will be forwarded to Lendy if SS can't answer it.]
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Post by savingstream on Mar 28, 2014 18:49:12 GMT
The deadline for the bridging loan is mid next week. If we are close, we will seek further underwriting to get the loan written.
The funds supplied by any underwriters will not stay in the loan full term but will be available for investment by SS investors until the underwriters investment is released.
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mikes1531
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Post by mikes1531 on Mar 29, 2014 2:27:07 GMT
The deadline for the bridging loan is mid next week. If we are close, we will seek further underwriting to get the loan written. The funds supplied by any underwriters will not stay in the loan full term but will be available for investment by SS investors until the underwriters investment is released. Thank you for this information. I have thought of a few more questions... In the Loan Particulars document it says... Does this mean that interest on this SS loan will be paid monthly, in contrast to the boat loans where no interest is payable until maturity? The document also says "Once completion of work has taken place..." What sort of work is being undertaken, and when is it expected to be finished? Finally, one of the exit options is a BtL mortgage. I wouldn't have thought that a "Detached 7-‐bedroom house with 5 acres of land and stables near Cardiff" was a likely BtL candidate, but I have no experience in this area. Is BtL a realistic possibility?
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Post by savingstream on Mar 29, 2014 8:26:25 GMT
We can confirm Interest WILL be paid to Investors on a monthly basis.
Work being completed: A large glass extension has been built, over £30k worth of glass is being installed. Finishing works such as tiling and painting to finish this extension, probably within 3-4 weeks.
The exit strategy for the borrowers is primarily a sale; they have other bridging lenders and a longer term mortgage available if the property has not been sold within the next 3 months. There are interested parties.
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mikes1531
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Post by mikes1531 on Mar 29, 2014 20:51:19 GMT
We can confirm Interest WILL be paid to Investors on a monthly basis. Work being completed: A large glass extension has been built, over £30k worth of glass is being installed. Finishing works such as tiling and painting to finish this extension, probably within 3-4 weeks. The exit strategy for the borrowers is primarily a sale; they have other bridging lenders and a longer term mortgage available if the property has not been sold within the next 3 months. There are interested parties. Thanks for the info. It sounds like it will be a pretty spectacular place when they're done, and it could be quite saleable -- but probably to a buyer who wants to live there rather than as a BtL investment. Which should be fine.
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Post by mrclondon on Mar 30, 2014 19:02:38 GMT
At the launch of SS the Lendy Ltd business model was clear - Lendy Ltd write loans secured on assets with their own funds, and then sell chunks of this debt via the SS website with a notional allocation of lenders funds against the corresponding security. Lender's funds are being loaned to Lendy Ltd to free up their capital for further loans.
With this bridging loan (and the superyacht renewal if it is so required) the situation is becoming rather blured. Lendy Ltd don't themselves have the capital to write these loans themselves and then resell, so are requesting via SS funds upfront. This sounds more like a traditional peer to peer lending model, a business model which is to be a regulated activity on Tuesday. Yet Lendy Ltd's interim authorisation from the FCA does not include Peer to Peer Lending (as it was felt to be irrelevant to Lendy Ltd's business model).
Does anyone have any thoughts on this distinction between the earlier loans and the bridging loan ?
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Post by savingstream on Mar 30, 2014 19:20:32 GMT
To clarify the regulation point, our FCA interim permission does now include Peer to Peer lending. A copy is available on request.
Our business model is continually evolving, we are still underwriting as much as we can, but by the very nature of property loans, some are too big for us to fully underwrite. We have a built an investor base of people willing to invest in boats for a great return, and we now want to offer the same great return for the more established property bridging market.
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spockie
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Post by spockie on Mar 30, 2014 19:33:43 GMT
I'm new to Savingstream today, so have just the one loan. Is there any kind of aftermarket mechanism?
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mikes1531
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Post by mikes1531 on Mar 31, 2014 2:46:37 GMT
I'm new to Savingstream today, so have just the one loan. Is there any kind of aftermarket mechanism? AFAIK, no. And I'm not sure whether or not they've ever said that they have any plans to set one up. If anyone has any knowledge of SS's plans for an aftermarket, I'd be pleased to learn about that.
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Post by savingstream on Mar 31, 2014 8:31:20 GMT
Update on Property Bridging Loan
1% Interest paid monthly
Minimum 1 month at least
1st charge security
Exit bridge available
Property market strong and improving
50% underwritten
The secondary market is currently under development and we hope to go live in the next few weeks.
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Post by westcountryfunder on Mar 31, 2014 9:03:12 GMT
I have a few toes in the water with SS, but I am bit wary of this bridging loan. Whether or not SS have the authorisation to undertake this type of business, do they have the expertise? AC for example have people with the necessary experience, but are there suitably qualified people at SS? Obviously they will use legal advsers to sort out the security technicalities, but even from my own experience I know there is more to it than that.
I rather like the idea of diversifying my own P2P portfolio into the boaty world, but I am presently unpersuaded about SS for bridgeovers.
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Post by savingstream on Mar 31, 2014 9:25:04 GMT
One of our directors has had an extensive career in the property finance market with positions at Barclays Bank Plc, United Trust Bank (development and bridging) and in the Middle East where he headed up Ahli United Banks London property investment team as senior mortgage officer in Bahrain.
Both our directors are property investors in their own right and have the support of many seasoned consultants and professionals to call upon for each deal, plus the chosen law firm also specialises in bridging loans.
Property is a much more established and mainstream market, Lendy Ltd believes it can only enhance and improve our investors position via diversification and an increase in loan availability for less perceived risk.
Lendy Ltd has all the necessary permissions and licenses to offer bridging loans on the SS platform. We will provide a file of all of our regulatory documentation on the SS platform.
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Post by westcountryfunder on Mar 31, 2014 14:00:11 GMT
One of our directors has had an extensive career in the property finance market with positions at Barclays Bank Plc, United Trust Bank (development and bridging) and in the Middle East where he headed up Ahli United Banks London property investment team as senior mortgage officer in Bahrain. Both our directors are property investors in their own right and have the support of many seasoned consultants and professionals to call upon for each deal, plus the chosen law firm also specialises in bridging loans. Property is a much more established and mainstream market, Lendy Ltd believes it can only enhance and improve our investors position via diversification and an increase in loan availability for less perceived risk. Lendy Ltd has all the necessary permissions and licenses to offer bridging loans on the SS platform. We will provide a file of all of our regulatory documentation on the SS platform. Thank you for your comments which do provide some reassurance.
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Post by batchoy on Mar 31, 2014 15:56:05 GMT
At the launch of SS the Lendy Ltd business model was clear - Lendy Ltd write loans secured on assets with their own funds, and then sell chunks of this debt via the SS website with a notional allocation of lenders funds against the corresponding security. Lender's funds are being loaned to Lendy Ltd to free up their capital for further loans. With this bridging loan (and the superyacht renewal if it is so required) the situation is becoming rather blured. Lendy Ltd don't themselves have the capital to write these loans themselves and then resell, so are requesting via SS funds upfront. This sounds more like a traditional peer to peer lending model, a business model which is to be a regulated activity on Tuesday. Yet Lendy Ltd's interim authorisation from the FCA does not include Peer to Peer Lending (as it was felt to be irrelevant to Lendy Ltd's business model). Does anyone have any thoughts on this distinction between the earlier loans and the bridging loan ? Whilst not an SS investor, this is a concerning development and moves their business outside of their existing T&Cs as well as their FCA authorisation.
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