star dust
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Post by star dust on Mar 16, 2018 13:38:12 GMT
Comprehensive update required from Lendy! It's down to 25% LTV already, with a large repayment within the last month and more promised... Are you "a bit impatient", or do you know something that's not been discussed here? Mod Hat On/ A couple of posts which identified the asset have been moved into DD Central - Mod Hat Off/- you really should join  . The posts related to an article in the local Stoke press; and the link is here for those with DD Central access - p2pindependentforum.com/post/254231/thread
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mary
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Post by mary on Mar 16, 2018 13:49:20 GMT
In summary the developer has given up and the part complete building is to be sold.
I assume the Lendy 1st charge security is still good, but don't know the value of a part complete building. I think the estimated cost to complete was ~£3m.
Unclear if buyers who have paid deposits will get anything, I am assuming they rank behind this loan in the creditors queue, but Lendy need to confirm this.
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sl75
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Post by sl75 on Mar 16, 2018 15:56:33 GMT
In summary the developer has given up and the part complete building is to be sold. I assume the Lendy 1st charge security is still good, but don't know the value of a part complete building. I think the estimated cost to complete was ~£3m. Unclear if buyers who have paid deposits will get anything, I am assuming they rank behind this loan in the creditors queue, but Lendy need to confirm this. I'd guess the value of a part completed building would be determined on a similar basis to one that hasn't been started (cf. PBL199), i.e. the anticipated final building value minus construction costs and developer profit... ... however, the developer profit would probably need to be larger for a part-completed building due to the risk that they may find some of the work to date is not of satisfactory standard, or needs to be redone due to deterioration in the intervening weeks/months. Also presumably needs to take into account any leases already sold, which presumably would not form part of the freehold security... although that all depends on the detail of the legal structure of the various deals done... I guess this stuff is all being discussed "in private" with people who can be bothered to dig through and find all the details involved, and that someone will put details here when a consensus has bean reached. I find it a little surprising that funds were being returned to us to such an extent if there were still ongoing costs that needed to be financed (on some other platforms, lenders would have been asked a question along the lines of "do you mind if the developer has access to £X of funds from the sale of the first N units so that he can finance costs of Y and Z? The LTV will still be ##% if you agree.", with most lenders selecting option A to allow it). In terms of "information I need" - I don't see that it affects any specific decision that I can make in the short term, as I cannot attempt to exit my position in this loan and cannot buy any more of it, so I only need to factor it into my own general assessment of Lendy as a platform. As an aside, I wonder if the developer behind the string of other partly-completed student accommodation blocks will want to add this to their portfolio, and if so whether Lendy will be able to help them finance it without creating a massive conflict of interest. DD Central - Mod Hat Off/- you really should join . I get the impression it would only give me more things to worry about! I don't personally find the requirement to perform appropriate redaction too onerous (although I admit that READING heavily redacted posts or tracking down the information they hint at can sometimes be difficult!), and think it important that these things are discussed on the main boards where most lenders will be looking, rather than in private where only a self-selected elite have access... I look forward to the redacted version of any discussions currently going on in the "orange pages".
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star dust
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Post by star dust on Mar 16, 2018 17:10:19 GMT
DD Central - Mod Hat Off/- you really should join . I get the impression it would only give me more things to worry about! I don't personally find the requirement to perform appropriate redaction too onerous (although I admit that READING heavily redacted posts or tracking down the information they hint at can sometimes be difficult!), and think it important that these things are discussed on the main boards where most lenders will be looking, rather than in private where only a self-selected elite have access... I look forward to the redacted version of any discussions currently going on in the "orange pages". Posting the redacted version here is the responsibility of the poster, although in some instances other members have done it for them. However, there really is very little 'discussion' that goes on, in the main it's working as the forum staff had hoped as a place where unredacted information and links (in particular) can be placed so that the information on a particular loan or Platform or borrower is all usefully referenced. I would still recommend joining - there is no intention at all to be elitist and it is shared as far as possible. There had to be some kind of entrance criteria, and it is hoped that those with access will contribute as DD should really be an on-going process not just a loan start one and is most effective when many people are watching for things and share that information, so for those hopefully planning to give back as well, I personally don't think the criteria is really that onerous. Now I'm really not sure whether my mod hat should've been on or off for that 
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mickj
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Post by mickj on Mar 16, 2018 17:54:58 GMT
Comprehensive update required from Lendy! It's down to 25% LTV already, with a large repayment within the last month and more promised... Are you "a bit impatient", or do you know something that's not been discussed here? If the building site is to be sold one wonders where 'more promised' is coming from until it is sold and if....... I don't believe anyone would buy into this as an investment or somewhere to live at the moment and I have some sympathy for those that have, some paying much more than a deposit and expecting a finished property ready for the start of term September 2017. I love the photoshop views of a completed building shown from just the other side of the roundabout, looks like Stoke will have the scaffolding and hoardings on that corner for a while.
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star dust
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Post by star dust on Mar 16, 2018 18:00:35 GMT
Today's update on site
"The borrower advises us that full repayment of this loan should be achieved before the end of this month."
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mickj
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Post by mickj on Mar 16, 2018 18:16:09 GMT
I'll have to learn to keep off the keyboard, well that's good news then, we get our money back, the building gets sold and finished, all's well.
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Liz
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Post by Liz on Mar 16, 2018 19:32:17 GMT
Today's update on site "The borrower advises us that full repayment of this loan should be achieved before the end of this month." (my highlight) Ah But the Biggest of Big questions should be 'in What year?' I reckon Liz has it about right with her "probate" remark made elsewhere on the Lendy Indy this evening. By heck I'm becoming a tad cynical in my older age...  Not guilty on the probate comment, although I read it and laughed🤤
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hazellend
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Post by hazellend on Mar 16, 2018 20:14:58 GMT
Happy for this loan to run on indefinitely , nice low LTV
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bloodycat
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Post by bloodycat on Mar 16, 2018 20:18:03 GMT
I'm likely as cynical as most of you, but actually I expect this probably will repay in the next few weeks.
In the grand scheme of things the amount outstanding isn't that much. Removing our first charge from the site increases their viable options for minimizing their losses on this project (unfortunately I suspect many others won't be so lucky). The fact that they also have a somewhat larger project depending on our goodwill probably has something to do with it.
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rs
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Post by rs on Mar 29, 2018 20:45:43 GMT
Dear LY support, is the promised full reypament of this loan coming this week or not? Promised by who? Better chance of receiving the money on Friday 13th April.
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sl75
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Post by sl75 on May 8, 2018 14:36:36 GMT
I find it a little surprising that funds were being returned to us to such an extent if there were still ongoing costs that needed to be financed (on some other platforms, lenders would have been asked a question along the lines of "do you mind if the developer has access to £X of funds from the sale of the first N units so that he can finance costs of Y and Z? The LTV will still be ##% if you agree.", with most lenders selecting option A to allow it). In terms of "information I need" - I don't see that it affects any specific decision that I can make in the short term, as I cannot attempt to exit my position in this loan and cannot buy any more of it, so I only need to factor it into my own general assessment of Lendy as a platform. Looks like now we have a vote, but that completing the development via further finance on-platform is not even being considered as an option (if the 25% LTV is still even slightly accurate, it would seem to leave plenty of headroom for a second charge loan). I don't recall exactly when lenders voted to rule out the possibility... or does it mean Lendy have vetoed it as they are no longer willing to work with the developer?
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hazellend
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Post by hazellend on May 8, 2018 16:51:41 GMT
I voted to settle now as happy to get remaining capital back but will be very frustrated if does not complete in a few weeks as stated
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locutus
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Post by locutus on May 8, 2018 16:59:30 GMT
I decided to reject the offer and instead sell on the open market. As I see it, lenders have them over a barrel and the development can't proceed until we are paid all money owed. The LTV is so miniscule now with the amount of capital repaid and the development half complete and so the lender position is a strong one. Additionally, the borrower has multiple other projects on Lendy and is a successful company in its own right so I don't see why they shouldn't pay what is owed. This looks like Lendy just want to get it closed down and off the books whilst making lenders forego the interest they are rightfully owed.
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hazellend
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Post by hazellend on May 8, 2018 17:06:21 GMT
I decided to reject the offer and instead sell on the open market. As I see it, lenders have them over a barrel and the development can't proceed until we are paid all money owed. The LTV is so miniscule now with the amount of capital repaid and the development half complete and so the lender position is a strong one. Additionally, the borrower has multiple other projects on Lendy and is a successful company in its own right so I don't see why they shouldn't pay what is owed. This looks like Lendy just want to get it closed down and off the books whilst making lenders forego the interest they are rightfully owed. Agree with you but I can’t be bothered with the long drawn out affair of selling on the open market. One thing I was wondering is don’t Lendy have a duty to the borrower to try and achieve best price?
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