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

I e mailed Lendy support last week and requested the date of the letter that Lendy stated they had seen from the solicitors to the planning authority, whether they have been to inspect the planning file and why no interest has been paid for over 300 days.

Here is the reply ---

Hi  **** 
Thank you for getting in touch.

Unfortunately, we cannot go into any further detail than what is already in our updates at this point in time.

The next update will be communicated in our next fortnightly update, or sooner as and when further updates become available. In the meantime, we thank you for your patience.

Kind regards,  ----

What possible reason can there be for not even telling us the date of the letter? A redemption figure has been requested several times and nothing paid.

Note the phrase I have highlighted that they have clearly inherited from Funding Circle's now dead " highly experienced property team". God help us if they have employed any of that lot to deal with Lendy loans.

SteveT. If you check page 5 of this thread on 27th February 2018 I made the suggestion that they default this loan and sell the land. we are now no better informed that 3 months ago.

The lack of information and the reasons given are almost identical to those that were constantly being employed as a stalling tactic by the highly experienced incompetent property team at Funding Circle, right down to the patronising "thanks".

It is obvious where this loan is going... nowhere.

Some borrowers, like this one, appear to get a free pass with no action taken even though they are coming up to a year overdue with no attempt to service the debt.n

I know of no other financial institution that is so forgiving. One starts to think what is it that they have on Lendy?

The only conclusion I can come to right now is that something pretty damn serious slipped through Lendy's rigorous due diligence at the very beginning of this loan. 

Perhaps the credit committee failed to pick up something extremely important and rather than take the heat their best hope is to let everything play out in the hope that the borrower will miraculously make a go of this project. 

I'm lost for words, how can Ly just cut and paste the same comment from a fortnight ago on a loan that is 319 days overdue? Have they just given up?

See above (page 9) May 22 at 12.09.

Lendy are refusing to supply even the date of the letter. They refuse to give us any other information - probably because they have not bothered to ask the borrower what they are doing i.e. are they trying to sell on / re finance / or just abandon this project.

This borrower was supposed to be an expert in getting planning on similar plots.  

They have not bothered to protect investors by inspecting the planning file to establish the truth. 

It is obvious they have not seen or been supplied with any replies from the planning authority.

There are no new plans; there has been a total failure to repay capital; there has been no attempt to pay due interest.

Why was there discussion concerning a redemption figure months ago when this borrower clearly cannot pay up or simply refuses to repay?

As of February 2018 investors in this loan have been asking why it has not been defaulted and sold.

This was a single figure loan so Lendy cannot use the usual excuse that the project needs more cash to continue to conclusion.

This loan has exposed their inability to manage / enforce their existing loan book.

This loan was a white elephant from the start, all the signs were there, the wrighting was on the wall, a little bit of own DD would have confirmed this. I'm not defending Lendy but the loan quickly filled. So who is to blame. Lendy or themselves. As for why it's taking so long to resolve is probably because they know the land is only worth a bag of peanuts, so if they hold out, the borrower or someone else might offer 2 bags of peanuts.