PBL103 - Site with PP nr Hastings DEFAULT (Partial Recovery)

Anyone else remember this up date from nearly 8 months ago?

" 28/09/2017 
PBL103 - Site with planning for 117 units nr Hastings
Repayment has been delayed due to a planning issue identified.

The council have lost some drawings, although these are in the course of being re-created.

The borrower and their solicitor expect the council to confirm approval within two weeks"

That 2 week period would have taken us all to 12th October 2017.

As no new plans appear to ever have been submitted (they would appear on the web site if they had been) it would be impossible for the council to give any approval at any stage - with or without the inconvenience of the recent excuse given of a delay due to the local elections. This appears to have been a clear misstatement from the Borrower via the solicitor.

This is taking on a similar theme as the mess that FC managed to create with the 5 highly suspect London Hotel Loans (see the entries in the FC section).

No interest being paid by the borrower and no response from Lendy.

What do other investors in this loan think about the handling of their capital and the failure by Lendy to obtain additional payments of interest? 

This bit of land is in an area where new houses / flats are being built at this very moment. Get possession and sell it. 

Regards, SXLR

There is now a totally useless update on this suspect loan.

Lendy tell investors they have seen a copy of a letter sent to the planning department. So is that is all they have done to investigate this tardy borrower given the serious concerns raised in this thread ?

Get out of the Southsea office and go and inspect the planning file. You are responsible for promoting this loan so go and protect our investment by getting the real picture, then act on our behalf to force the issue.

Knowledgeable investors will note that the information machine that is Lendy support does not tell us the DATE of the letter and it clearly did not contain the new plans we were told were being created / submitted. There are no new plans on the website.

The solicitors were asking for a redemption figure last year and for March this year. How is this borrower suddenly going to repay if he is unable to even pay / or offer to pay the on going monthly interest still due to us ?

Some may think that this stalling tactic has all the hallmarks of a very clever scheme to extract money from investors, via Lendy, and they owe us a duty of care to catch this borrower out and put and end to this fiasco.

True, there are warnings for every loan on every p2p sites.

Do you suggest we just give up ?

Would you prefer that this thread now gets a downward arrow as it is becoming a thorn in the side of Lendy?

I have made a positive suggestion that the file actually be inspected. What suggestion do you have to resolve this impasse?

There would be an expectation that this comment would be taken into account by the surveyor when calculating the market value though?  

The problem is the fresh meat that reads the warnings but don't think this means that platforms will present loans that are almost certainly doomed to failure resulting in capital loss. Surely no platform would even think of doing that?

Yea, right.....

It's all very well some of us old hands being a little more clued up these days, but as long as the new money rolls in.

I've not been following closely but it appears the loan is now over 300 days overdue and the borrower's been giving Lendy the runaround for months. So my "suggestion" is to face facts, default the loan, appoint an LPA Receiver and sell the site to the highest bidder. This will likely crystallise a significant capital loss, but that seemed possible (likely even) from the outset. Learn lessons for next time. Move on.

Lendy's strategy here is presumably much like Funding Secure's with various of their "not much hope of recovering the capital in a fire sale" loans (eg. the power boats): cross all fingers and hope the tall stories that the borrower keep spinning miraculously bear fruit one day. If they investigate too closely, they'll have little option but to default it.