sussexlender
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Post by sussexlender on Apr 1, 2018 18:41:53 GMT
Have just driven to check out this silent site. Really sorry to tell investors that nothing has changed in the last 264 days.
Unless someone from Lendy actually does something this will simply go round in circles for ever.
The planning department cannot do anything because they have no new plans which would comply with the up to date building regulations so they can not grant any new variation / permission.
The borrower cannot do anything because he has failed / refused to submit any new plans and blames the planning department. He is the cause of the problem not the local authority.
Meanwhile investors have not received any interest, even at a reduced rate which of course a genuine borrower would offer so as to reduce the eventual final repayment.
This borrower has made no effort to repay or to advance the development. He is wasting everyone's time with what amounts to an interest free loan from us. No one will ever get the joke "bonus interest".
It will very soon be a glorious new tax year which would be the perfect time to take this piece of land away from this useless borrower, to sell it in the summer and get some cash back for investors.
Happy Easter.
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Post by charliebrown on Apr 3, 2018 13:08:51 GMT
Have just driven to check out this silent site. Really sorry to tell investors that nothing has changed in the last 264 days. Unless someone from Lendy actually does something this will simply go round in circles for ever. The planning department cannot do anything because they have no new plans which would comply with the up to date building regulations so they can not grant any new variation / permission. The borrower cannot do anything because he has failed / refused to submit any new plans and blames the planning department. He is the cause of the problem not the local authority. Meanwhile investors have not received any interest, even at a reduced rate which of course a genuine borrower would offer so as to reduce the eventual final repayment. This borrower has made no effort to repay or to advance the development. He is wasting everyone's time with what amounts to an interest free loan from us. No one will ever get the joke "bonus interest". It will very soon be a glorious new tax year which would be the perfect time to take this piece of land away from this useless borrower, to sell it in the summer and get some cash back for investors. Happy Easter. Great effort, thanks for taking the time to do a drive by and share your findings (or lack of findings as it turns out). If you have local knowledge, any idea whether the valuation looks accurate or whether we’ll soon be voting to sell this off for the price of a cup of tea.
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sussexlender
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Post by sussexlender on Apr 8, 2018 7:04:42 GMT
I will try to obtain some more ideas asap concerning valuation.
One thing is very clear. The Borrower is doing nothing to help progress this development and is enjoying an interest free loan provided by us, via Lendy.
It is a new tax year so it is time to call a halt to this Borrowers game of "it is not my fault" - take the land off him and sell.
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r1200gs
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Post by r1200gs on Apr 8, 2018 8:07:15 GMT
This is very interesting because I live in East Sussex not far from St Leonards and I also know this site by sight and I read the local papers and keep abreast of things like this and I can tell people here that people have been trying and failing to develop this site for as long as I can remember. It's been there unchanged through several property booms and still it's never been viable to build it. As others have said St Leonards is very run down now. When it was built in the Victorian era it was the posh residential end of Hastings but all those big grand buildings have been carved up into Flats and bedsits and there is a large immigrant population and lots of transient people and frankly there are all the associated social problems with things like drugs. In general it's not considered a very desirable area and it's not the safest place I wouldn't want to be out around there at night on my own. Consequently there isn't a lot of demand for property and that's why property values are so low. Have a look on Rightmove and you can see how cheap you can pick up a flat in St Leonards. This site has always been blighted because it's not level and steep and requires piling and basically a lot of abnormal development costs. I have to say that I would be very surprised if any developer would start such a development in an area like that with all the abnormal costs for only a 17.5% profit at the end of it if it all goes to plan. Personally I would suggest that a developer would be looking for a higher than average profit to reflect the higher than normal risk for a residential development. I would say such a scheme is only borderline viable in the now. In a year or two time if we have the slightest downturn which looks likely then I can't see that site being saleable at all. I appreciate the valuer has done a detailed residual valuation but those sorts of valuations are so sensitive to the slightest change in the numbers and percentages you enter that you can almost end up with any answer you want. It looks like the value has been put into the site because of the view that the near 30 year old planning permission has been implemented and is thus still valid and therefore you wouldn't need to build the usual proportion of affordable housing which drags the viability of a scheme down. However notwithstanding the numbers which I respect the valuers professional opinion on, my own personal opinion from my knowledge of the area and the fact that site has been dormant for the best part of 20 or 30 years and no developer has felt able to do anything with it despite the council having it allocated for residential development for ages and ages, my opinion is that 3 million pounds for that site if you sort it in that area of St Leonards seems an awful lot and I'd be amazed if anyone in the real market would pay that for it in the event it had to be sold. I wonder if a local valuer with local knowledge and expertise would have used a lot more judgement rather than rely on a spreadsheet to turn out an answer. In summary I am going to have a little bit of this but I won't be holding it anywhere near until maturity because I fail this one is very high risk and in fact I will be quite surprised if this site gets developed in my lifetime.cant say we wasnt warned about this funny how LENDY story was very different Exactly. And even after that post was made with the issues easily verifiable, lenders were still desperate for loan parts and the biggest issue for some was how much they could get. I'm not excusing Lendy who should never have put this on the platform, but greedy lenders share the blame here.(Puts on flame proof suite!). And of course at the time, I believe the warnings around the secondary market liquidity were already being made, that pass the parcel was not going to remain a valid strategy. I'm no DD genius but honestly, some lenders really need to look in the mirror before blaming Lendy for all their problems really need to have a word with themselves. Thank you harvey for fair warning and to the others who have done the same for board users.
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Liz
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Post by Liz on Apr 8, 2018 12:59:24 GMT
cant say we wasnt warned about this funny how LENDY story was very different Exactly. And even after that post was made with the issues easily verifiable, lenders were still desperate for loan parts and the biggest issue for some was how much they could get. I'm not excusing Lendy who should never have put this on the platform, but greedy lenders share the blame here.(Puts on flame proof suite!). And of course at the time, I believe the warnings around the secondary market liquidity were already being made, that pass the parcel was not going to remain a valid strategy. I'm no DD genius but honestly, some lenders really need to look in the mirror before blaming Lendy for all their problems really need to have a word with themselves. Thank you harvey for fair warning and to the others who have done the same for board users. Do you have a spare jacket! I totally agree, Lendy have been reckless, lead by profit, that's capitalism for you! But lenders do need to wise up, take responsibility and not invest in some of these, not @12% anyway.
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sussexlender
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Post by sussexlender on Apr 8, 2018 19:49:34 GMT
Do you think it is time for Lendy to call the borrowers bluff and call this loan in, or just let it run on as an interest free loan?
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GeorgeT
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Post by GeorgeT on Apr 8, 2018 20:12:14 GMT
Do you think it is time for Lendy to call the borrowers bluff and call this loan in, or just let it run on as an interest free loan? Trouble is, if they call it in they are probably only looking at a 30% or 40% recovery and that will just intensify criticism of their due diligence.
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sussexlender
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Post by sussexlender on Apr 14, 2018 19:29:23 GMT
The recent update is just meaningless.
Lendy, you are now being made fools of by the borrower and his solicitor.
Unless this borrower submits new plans the local planning department cannot do anything. Do something to break this absurd stagnation.
This borrower is just enjoying an interest free loan.
For heavens sake, get in a car or train and go and check out the planning file so you can see the real position rather than just accept the rubbish that you are told and then simply repeating it to investors. This is exactly what FC did and the reason many investors quit their site to come to you instead.
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oldgrumpy
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Post by oldgrumpy on Apr 16, 2018 15:11:51 GMT
"This borrower is just enjoying an interest free loan"
.... and has spent it on what?
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Monetus
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Post by Monetus on Apr 16, 2018 15:22:40 GMT
Come on Lendy we've had the same nonsense updates for MONTHS now.... this is becoming a joke.
Why isn't the borrower at least being told to pay the monthly interest why this is resolved?
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sussexlender
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Post by sussexlender on Apr 18, 2018 18:36:01 GMT
"This borrower is just enjoying an interest free loan"
.... and has spent it on what?
Hi oldgrumpy. Anything they want except the interest they owe us!
Lendy. Instead of changing the terms of Default loans why don't you get someone from your office to actually go and look at the planning file, instead of taking the "solicitors" constant excuses as fact.
There is a lot of money at stake here, so get out and check the real position and then tell us the real situation. My bet is there have been no new plans submitted so no new up to date permission can be approved; this is going round in circles.
No further investments from me until you do something to prove you have inspected the planning file.
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Monetus
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Post by Monetus on Apr 25, 2018 15:45:04 GMT
How about a real update on this one Lendy Support ? The constant "waiting on an update from the planning authority" updates are wearing thin.... especially as it seems that the borrower hasn't submitted any new approved plans and is wasting everyone's time. Get someone from your office to actually check the planning file! Why on earth is the borrower at least not paying interest? |
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Post by Lendy Support on Apr 25, 2018 16:27:44 GMT
Dear all, thanks for your posts on the thread. As a brief update, we have sadly had some slow progress on this one. The forthcoming local council elections have impacted upon the process, owing to the local planning authority being unable to issue decisions purdah. Once the election date has passed we will put more pressure on the borrower for a detailed update, which we will be seeking to obtain over next four to six weeks. Regards Lendy Support |
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ptr120
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Post by ptr120 on Apr 25, 2018 17:35:40 GMT
Dear Lendy Support thanks for the comment that you've posted above. However, we were told on 27 October 2017 that "We have been alerted to the borrower having delays in receiving affirmation of their existing planning permission from the Council". Given that, perhaps you can explain why local elections (which take place in early May) impact on the local planning authority affirming an existing planning application?
I would further like to understand if you are relying directly on information from the planning department at the council, the borrower, or their agent? |
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mary
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Post by mary on Apr 25, 2018 18:12:16 GMT
Dear Lendy Support thanks for the comment that you've posted above. However, we were told on 27 October 2017 that "We have been alerted to the borrower having delays in receiving affirmation of their existing planning permission from the Council". Given that, perhaps you can explain why local elections (which take place in early May) impact on the local planning authority affirming an existing planning application?
I would further like to understand if you are relying directly on information from the planning department at the council, the borrower, or their agent? Exactly. As far as anyone can discover there is no current planning application that would be impacted by the election cycle. Prior planning approvals have now expired. Enforce the default and start recovery (that should have started many moons ago). This is a prime example of the old Lendy that I thought had learnt many lessons from previous poor lending decisions and had started to get tough, but it seems that some borrowers are exempt?
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