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Post by broker2020 on Jul 18, 2018 8:36:14 GMT
Something seriously stinks here, I have been through the valuation again, and it clearly includes the land. I understand there are risks in these types of transactions, but to be given misleading information, from an FCA regulated business is not only a disgrace but I believe gives us some grounds for action against Lendy.
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Post by slimanne on Jul 18, 2018 9:04:54 GMT
Something seriously stinks here, I have been through the valuation again, and it clearly includes the land. I understand there are risks in these types of transactions, but to be given misleading information, from an FCA regulated business is not only a disgrace but I believe gives us some grounds for action against Lendy. All your comments with others made on the 2nd May is correct, I have looked at the administrators report and it is wrong there is a cover up at best, what is the offer we been asked to vote on.
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joe91
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Post by joe91 on Jul 18, 2018 15:02:49 GMT
Again, not enough info from Lendy.
When they say "recover the balance of investors' capital and accrued interest by claims against other parties", do they mean the valuers?
The valuation document states that they are insured up to £4m, so should be a piece of cake if their 90 day value turned out to be wrong? Anyone with Legal knowledge care to enlighten me?
I'm tempted to say keep marketing it, but if we have a valid claim against the valuers insurers, then that might be the better option?
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poppyland
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Post by poppyland on Jul 18, 2018 17:07:26 GMT
It seems to me that whenever a loan goes bad and is unlikely to recover all capital, that Lendy should IMMEDIATELY surrender all of the fees they received for organising the loan, and that they should make no profit on any loan that does not return investor capital. This would be the decent thing to do, especially when they have messed up so badly.
It is a very worrying situation if Lendy end up with the same fees for loans that go bad as for loans that are a success.
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Post by slimanne on Jul 19, 2018 1:03:21 GMT
Further to our previous email of January 2nd we have considered the value based on the special conditions of the loan imposed by Lendy. In our opinion this is likely to have an adverse affect and as a result a potential market value assuming the strict conditions would be £3,000,000 having regard to the fact that your business model was to sell properties to investors and return the proceeds back into the business in order to finance the ongoing refurbishment. As we understand it the special conditions imposed required repayment of the loan and thus left the project undercapitalised.
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daveb4
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Post by daveb4 on Jul 19, 2018 8:09:55 GMT
B for me this time, if only receiving 65% recovery worth a go to try and get more
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joe91
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Post by joe91 on Jul 19, 2018 11:14:46 GMT
Yes, option 2 for me.
Lendy have sold us a pup they said was worth £4.3m, and are encouraging us to sell it for £1.9m to get them off the hook.
I'm not sure who is at fault here, but it's either Lendy, or the Valuers. It's not the investors, so why should we take the hit?
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Post by charliebrown on Jul 19, 2018 12:03:30 GMT
Yes, option 2 for me. Lendy have sold us a pup they said was worth £4.3m, and are encouraging us to sell it for £1.9m to get them off the hook. I'm not sure who is at fault here, but it's either Lendy, or the Valuers. It's not the investors, so why should we take the hit? In what way is LY on the hook? The comment about LY giving up their fees on any loan where lenders have lost capital, this is a great suggestion. This would restore a lot of my confidence that they care about their investors and that they’re actually ethical. To profit substantially from loosing 35% of our capital is really unfair. Giving up their profit on these loans would restore confidence that they know right from wrong, it wouldn’t restore any confidence in their competence though.
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invester
P2P Blogger
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Post by invester on Jul 19, 2018 12:07:59 GMT
Problem is, by the time a particular loan turns bad, the fees associated with that loan will have long been spent.
More pertinently, can they afford to even make such a gesture?? Look at all the loans that are going bad, refunding fees to lenders would bankrupt them.
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juliana
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Post by juliana on Jul 19, 2018 15:44:33 GMT
Dear ALL,
Sorry if my post is a little clunky but first one. I am a Lendy investor who has invested over £100K over the last year so pretty keen that they manage all professionally. I have a specific investment in this PBL167. There are also another investment if not more than one that are in the same situation where default cannot be recovered by just selling the property.
I am very frustrated that you cannot talk to LY about these issues. I totally understand that they cannot spend 5 minutes with each investor as that would be too time consuming. However it would be useful to communicate with us more fully and there are other ways. I cannot work out if LY is unprofessional/ incompetent or doing deals behind the scenes. Whatever it is, they do need us small investors to keep their brand and business going. Without our support they have no business.
There seems some fundamental issues afoot. Just look at the basics of this loan: Initially valued at £4.3m completed with loan for £2.6m ie £1.7m of starting value before we go involved. We are about 6 months overdue so I imagine the loan LY gave them was used for developing the site (Do we know) or did the lendy just 'lose' it somewhere (In which case LY are incompetent or fraudulent and making sure investors use the loans for the purposes they were meant for). If the works were completed then how does an original valuation of £4.3 collapse to £1.9m. Has nuclear waste being discovered in Pickering.
If a loan with an LTV of initially 60% ends up not paying out even after legal costs - what happened to the valuation to get it to £1.9m?
What is happening here? I really feel we need to bring together like investors and put pressure on LY and start putting pressure on their brand image to get their attention.
Ideas?
Julian
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juliana
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Post by juliana on Jul 19, 2018 15:58:26 GMT
Sorry ALL,
Just read some of the earlier posts a little more!
In summary I understand that the Valuation made by the surveyor was based on a different basis to what we loaned against and had this been know to the valuer he would revised the valuation from £4.2m to £3.0m This raises some really difficult questions for Lendy about their honesty in posting 'honest' valuations from valuers. If this was a professional mistake then they should be very clearly showing that they are not taking any payments for running this loan account - Lendy over to you!
If the valuation should have been £3.0m then where does an offer of £1.9m come from?
Also can't someone work with the landowner and do a deal with us?
Julian
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jul 19, 2018 16:56:36 GMT
Go back over a year and more and read up on The Great Valuations Scam, juliana.
And regarding "unprofessional/ incompetent or doing deals behind the scenes", could it possibly be both?!
(Much) More homework required Young Sir, before I consider marking your Report Card!
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Post by broker2020 on Jul 19, 2018 17:12:31 GMT
If Lendy used a valuation which they knew to be inaccurate or no longer valid to raise the capital for this project, then this is out and out fraud. Where is the FCA in this matter, have they not looked into the bad debt situation before granting them full FCA authorization?
And also what are we going to be left with after costs, is that £1.9 million gross or net?
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Post by brightspark on Jul 19, 2018 21:11:17 GMT
Sorry ALL, Just read some of the earlier posts a little more! In summary I understand that the Valuation made by the surveyor was based on a different basis to what we loaned against and had this been know to the valuer he would revised the valuation from £4.2m to £3.0m This raises some really difficult questions for Lendy about their honesty in posting 'honest' valuations from valuers. If this was a professional mistake then they should be very clearly showing that they are not taking any payments for running this loan account - Lendy over to you! If the valuation should have been £3.0m then where does an offer of £1.9m come from? Also can't someone work with the landowner and do a deal with us? Julian No difficult questions are raised for Lendy because they are not providing financial advice. Any information obtained from their website in relation to any loans may or may not be accurate - much of the information is of course provided by borrowers. It is entirely up to lenders to do their own due diligence and to diversify their investment portfolios to mitigate risk Valuations are carried out by valuers who are independent professionals and Lendy may not be at all at fault if properly instructed valuations are off the mark. In their terms and conditions they grant themselves much leeway in the manner in which they go about loan recoveries which may take years. I do realise that is not what comes across on the website of Lendy although most of what I say is there somewhere in the small print. You may have strong views to the contrary but I fear you will get little real sympathy from Lendy - Caveat Emptor and all that. You could complain to Lendy, take issues further to the Ombudsman, consult a solicitor, see your MP, have a chat with Citizens Advice or your local Trading Standards. I don't honestly think any of it will get you anywhere. I don't know the answer. Lendy is not a bank nor a Building Society and certainly does not act like one.
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mary
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Post by mary on Jul 20, 2018 7:59:29 GMT
This what the chartered surveyor said 2nd January 2018: We are advised that Lendy are demanding repayment of their loan to Belisa Spa in respect of the Beckhouse Cottages site and your solicitors have cited our valuation of February 21st 2017 in correspondence with Lendy's solicitors. We further understand that at the 11th hour of the proposed loan special conditions were attached to the loan documents of which we were not made aware, but in our opinion should have been, as we consider they would have made a material difference to the valuation report which Lendy published on their web site. At this we would also add that in paragraph 11.2 of our report we state that the report should not be published in any way without our prior written approval as to the form and context in which it may appear. Whilst Lendy's valuation instructions to us advise that our report will be put on to their web site at no time have we been asked to confirm acceptance of the form and context in which that report might appear. The special conditions relate to repayment of the loan and clause 10.5 of the loan agreement requires the Borrower to pay 100% of the net sale proceeds (as approved by the lender) from all sales of part of the property to prepay part or repay the whole of the loan. The Borrower was also required to undertake to prepay at least 50% of the loan prior to the date which is 6 months from the date of drawdown (the minimum payment). Should the Borrower fail to sell sufficient individual units on the property to enable it to make the minimum payment and/or the Borrower fails to make the minimum payment by the date which is 6 months from the date of drawdown, then such failure will constitute an event of fault. In our opinion these special conditions make the individual cottages unsellable to investors which was the main thrust of Belisa's business model. On that basis we consider our valuation would have been considerably lower than that figure eventually reported of Market Value £4.59m. Whilst we were not valuing the property as a fully operational business entity, part of the business model was such that the individual cottages would be sold, and clearly that is not now possible because of the special conditions imposed. I trust the above helps, but please let me know if you require any further clarification. .This is an interesting post, as it implies that if the Valuer had realised that the Valuation would come under public scrutiny they would likely have, either been more conservative or at least added many caveats in an attempt to protect themselves from criticism should issues arise. The fact that Valuers do not want scrutiny, yet P2P cannot exist without Valuations being available to Lenders, hopefully will lead to more realistic Valuations, and that rouge projects never see the light of day.
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