sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Aug 22, 2018 11:59:28 GMT
90 days remaining to the end of the new extention given to this borrower... and no real progress of refinance or sale. Once again I ask Lendy team to take control of this really really bad situation. Not only the security associated with the loan was depleted to give funds to unsecured creditors before secured lenders, but the dozens of reassurances that it was a emporary hiccup and the sale would complete and repayment done in time seem, once again, totally false. Lenders expect their money back ASAP!! Time passes by but nothing changes in the Lendy castle.... Now 25 days remaining to the end of the new extension given to this borrower and NO real progress on refinance or sale. I wish to remember, once again, that we are in this situation because Lendy people released a very large chunk of money coming out of the security (freehold)which went to UNSECURED CREDITORS and without any lenders' permission. This would be totally illegal in any default procedure. And this in addition to giving more time to an untrusted borrower who is using money from this security to fund another development. Once again I ask Lendy team to take control of this really really bad situation. Not only the security associated with the loan was depleted to give funds to unsecured creditors before secured lenders, but the dozens of reassurances that it was a emporary hiccup and the sale would complete and repayment done in time seem, once again, totally false. Lenders expect their money back ASAP!! I don't understand why some lenders are negative about this loan. When the freehold was sold lenders got £2m repaid, (including bonus interest). Seemed like a reasonable amount for the freehold. Lendy kept charge of a 250 year leasehold on the completed buildings. In addition, lenders got additional security in the form of a first charge on the mansion house. The development is complete and to a high standard (there are photos to back this up). In June roughly half the development was nearly sold, and would have been enough to pay lenders in full. That indicates a current LTV of roughly 50%, not including the additional first charge on the mansion house. I'm fully aware that some valuations on other loans have been very wrong, but this looks pretty accurate. In 25 days time bonus interest starts again. Lovely.
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Post by loftankerman on Aug 22, 2018 12:10:40 GMT
If I don't get my funds repaid in this loan I will be taking legal action against Lendy. They had zero right to do what they have done here, and if that happens then lets just say that their beloved cowes week will be very interesting for them next year. DFL04 had a vote and they went against the outcome of the vote so beat that! What it really achieved was more time for the lender. Lendy do what they want, end of. The rule regarding votes was that they weren't obliged to act in accordance with them. This has a parallel in British law. When the government decided to follow the European concept of having ombudsmen who could oversee them and rule on matters, they copped out and said they were only advisory and following their rulings was optional. That's why the Equitable Life victims who are still alive, are still waiting for their money.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Aug 22, 2018 13:36:55 GMT
"Under the T&Cs that you agreed to, they had every right:" SteveT Aaarrrrrrrggggggghhhhhhhhhhhh, the truth always hurts! 
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Post by scerbera on Aug 22, 2018 14:19:22 GMT
If I don't get my funds repaid in this loan I will be taking legal action against Lendy. They had zero right to do what they have done here, and if that happens then lets just say that their beloved cowes week will be very interesting for them next year. Under the T&Cs that you agreed to, they had every right: " 9.6 Notwithstanding any other clause in these Terms you agree that, in certain circumstances, for example a change in the borrower’s circumstances, and in its absolute discretion, Lendy (acting as agent on your behalf) may agree with the borrower to restructure the loan and amend the Loan Contract (including, for the avoidance of doubt, to agree to extend the term of any loan) and you will be bound by these amendments.
9.7 Where Lendy and/or Saving Stream Security Holding believes that an agreement to restructure the loan and amend the Loan Contract is in the interests of the relevant lenders as a group, and intends to amend the terms of the Loan Contract in accordance with clause 9.6 above, we will notify you of this.
9.8 You agree that Lendy will be acting as your agent on your behalf in:
9.8.1 negotiating and agreeing amendments to the Loan Contract in accordance with clause 9.6 above; and
9.8.2 negotiating and settling any dispute relating to the Loan Contract.
9.9 You hereby appoint Lendy (for the duration of your membership of the Lendy Platform) as your agent on your behalf with full power to carry out those amendments referred to in Clause 9.8 without your specific agreement. You will then be bound by those amendments. You agree and acknowledge that Lendy shall take on no liabilities, obligations or rights under the Loan Contract as a result of such agency, and you agree that you will continue to be solely liable and responsible for the rights and obligations under the Loan Contract (as amended) and Lendy and/or Saving Stream Security Holding will not be liable for any amendments to the Loan Contract." what they have done is far beyond "restructuring". these conditions are in no way reasonable, it doesn't give them carte blanche to re lend funds as they choose for a completely different purpose. lendy are rotten to the core and operate on a business model where valuations are pie in the sky for the most part, if they weren't then all non performing loans could be placed into auction to recover. Its effectively fraud
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 22, 2018 14:30:06 GMT
Under the T&Cs that you agreed to, they had every right: " 9.6 Notwithstanding any other clause in these Terms you agree that, in certain circumstances, for example a change in the borrower’s circumstances, and in its absolute discretion, Lendy (acting as agent on your behalf) may agree with the borrower to restructure the loan and amend the Loan Contract (including, for the avoidance of doubt, to agree to extend the term of any loan) and you will be bound by these amendments.
9.7 Where Lendy and/or Saving Stream Security Holding believes that an agreement to restructure the loan and amend the Loan Contract is in the interests of the relevant lenders as a group, and intends to amend the terms of the Loan Contract in accordance with clause 9.6 above, we will notify you of this.
9.8 You agree that Lendy will be acting as your agent on your behalf in:
9.8.1 negotiating and agreeing amendments to the Loan Contract in accordance with clause 9.6 above; and
9.8.2 negotiating and settling any dispute relating to the Loan Contract.
9.9 You hereby appoint Lendy (for the duration of your membership of the Lendy Platform) as your agent on your behalf with full power to carry out those amendments referred to in Clause 9.8 without your specific agreement. You will then be bound by those amendments. You agree and acknowledge that Lendy shall take on no liabilities, obligations or rights under the Loan Contract as a result of such agency, and you agree that you will continue to be solely liable and responsible for the rights and obligations under the Loan Contract (as amended) and Lendy and/or Saving Stream Security Holding will not be liable for any amendments to the Loan Contract." what they have done is far beyond "restructuring". these conditions are in no way reasonable, it doesn't give them carte blanche to re lend funds as they choose for a completely different purpose. lendy are rotten to the core and operate on a business model where valuations are pie in the sky for the most part, if they weren't then all non performing loans could be placed into auction to recover. Its effectively fraud In what way have they lent funds for an entirely different purpose? NB Note that the original funds were for the purpose of DFL019 and subsequent funds for DFL005. AFAICS funds are still being lent for DFL005/DFL0019 so no change there. Funds were lent for the construction & sale of DFL005, the construction is complete, the sale is not so funds are still for the sale purpose. The only thing that has changed is the timescale and the security has been restructured in lenders favour.
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hazellend
Member of DD Central
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Post by hazellend on Aug 23, 2018 12:05:52 GMT
I love this loan personally.
It is basically a low risk, high interest commercial mortgage.
Fine by me if it runs over the due date and I don’t think Lendy should have done much different
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Post by spareapennyor2 on Aug 23, 2018 12:44:52 GMT
I love this loan personally. It is basically a low risk, high interest commercial mortgage. Fine by me if it runs over the due date and I don’t think Lendy should have done much different only if they pay the interest big IF
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hazellend
Member of DD Central
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Post by hazellend on Aug 23, 2018 13:47:27 GMT
I love this loan personally. It is basically a low risk, high interest commercial mortgage. Fine by me if it runs over the due date and I don’t think Lendy should have done much different LOL! I have some magic beans for sale if you'd like to PM me with your bank details  Err thanks but I prefer my 1% cash in hand which has been paid every month without issue and the solid security. If you can find a better 12% loan out there I’d like to see it. This is a completed, high spec holiday development which is running successfully and income producing. If it has to be sold I’m confident it will be for enough to cover capital and interest
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hazellend
Member of DD Central
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Post by hazellend on Aug 23, 2018 14:28:53 GMT
It's no longer a 12% loan. Look at the total reward you can expect. Assuming this repays on time, with 24 days to go, you'd profit 0.75% total return. DFL 19 is far better with circa 10% total return. It also has a floating charge over the holding company that owns the DFL5 asset so will effectively still hold second charge even after refinance. It’s 12%/ year DFL 19 is not complete
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hazellend
Member of DD Central
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Post by hazellend on Aug 23, 2018 15:00:46 GMT
The annual return is irrelevant when the clock is about to stop ticking. DFL 19 itself isn't finished but it still has a floating charge over DFL 5 in any case. The clock can tick away at 1.5% per month accumulating
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empirica
Member of DD Central
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Post by empirica on Aug 23, 2018 15:35:59 GMT
The annual return is irrelevant when the clock is about to stop ticking. DFL 19 itself isn't finished but it still has a floating charge over DFL 5 in any case. I've tried to understand but am falling short, so ...
As and when DFL005 repays, what _ if anything _ happens to the floating charge? And _ if at all _ how does that affect the 'attractiveness' of DFL019?
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Monetus
Member of DD Central
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Post by Monetus on Aug 31, 2018 15:11:01 GMT
"Discussions with the borrower are ongoing. Disappointingly it is now considered unlikely that the refinance will be completed before the loan matures in just over two weeks’ time. We have therefore commenced negotiations with the borrower regarding the terms of a possible lump sum Loan reduction and extension."
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Post by brightspark on Sept 14, 2018 16:14:53 GMT
"Discussions with the borrower are ongoing. Disappointingly it is now considered unlikely that the refinance will be completed before the loan matures in just over two weeks’ time. We have therefore commenced negotiations with the borrower regarding the terms of a possible lump sum Loan reduction and extension." Looks like the mis-appropriation of at least some of lender's funds into the borrower's other development(s) is set to continue.
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jcb208
Member of DD Central
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Post by jcb208 on Sept 14, 2018 16:33:23 GMT
1 day left before this goes to IA and no update from lendy as to if an extension has been agreed or not. Oh forgot we may have to wait another 3 weeks for that  |
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Post by loftankerman on Sept 14, 2018 18:44:47 GMT
I'm anticipating that it will straggle along in the wake of DFL019 until the sheds sink beneath the waves and take this and our money with it. A bit like Moby Dick and Cap'n Ahab.
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