PBL131 - M**** Quay, Hull - REPAID

Nothing to say the loan could not be sold during its life, and given that inflation has never been above 10% in the last 30 years and interest only briefly spiked above 10% twice during that period that's a risk I would bite your hand off to take.

SS possibly didn't want themselves exposed to this borrower too much; they already let another loan (same borrower), which was in the pipeline for many months, dissipate (that SPV subsequently went bust...).

50% ish right... 

This loan "rolled on" (This was not forced on the investors) from PBL054, which was a £1,787,500 loan.  This new loan simply increased the loan (due to a new plot of land being added to the security) & term, and as such, the only part of the loan that has not drawndown is the increased part of the loan.

Also, remember that all loans include the interest which is held back, so the interest here will be taken from that pot.  However, what happens with the "lull" has never been fully explained by SS (if SS are covering it, or if the borrower covers it).

All funds are sat in the client account whilst we get the deal through legals. 

The borrower is paying the interest on this loan. 

Thank you C_D and Mike, pls excuse ignorance as finessing my understanding after a full 1 1/2 weeks on the platform!

At the moment we have pre-funded 3.4m GBP whilst 1st Charge remains at 1.8m GBP vs original loan, so no repayment risk if replacement loan falls through during legals? 

Last SS update reads (11/11): "2 weeks ago: Expected to finally complete at the end of October."
Still not drawn down so there can be nothing to worry about except that the loan may be cancelled and the lenders refunded. Is this likely?

An SS update would be good.

I have posted the comment above on the Q&A for the loan. Never tried that before. Does it have any effect?

savingstream:  When you referred to "all funds" above, do you mean the full £4.8M of PBL131?  Or just the difference between that and the £1.8M of PBL054 that was rolled forward into PBL131?

twoheads:  If SS answer Yes to my first question above, then you should be right that there's nothing for PBL131 investors to worry about.  If they answer No to that and Yes to my second question, then in order to refund all PBL131 investors' money they'd need to retrieve the PBL054 money which, presumably, the borrower still has.  Or SS/Lendy would have to combine £1.8M of their own working capital with the amount in the client account to refund PBL131 investors in full and then pursue the recovery themselves to replenish their working capital.  If they're willing to do that, then PBL131 investors wouldn't have a problem.

Finally, with respect to SS's comment that the borrower "is servicing interest", I wonder if that means the interest on the full £4.8M of PBL131, or just the interest on the £1.8M they already have.  If the latter, then there's a £30k/month drain on SS/Lendy's resources.