PBL133 + PBL194 Woodlands, C********** BOTH REPAID

As someone who has always wanted a small piece of woodland to invest in, this sort of loan really appeals to me (location, not a DFL, diversity of asset class). It is also emotional, however, so not the best reasons for investing (camping, field archery, forestry/conservation work etc - I love it!).

Valued at 6k per acre which includes the lake, fishing rights, air rifle stuff, forestry buildings and other bits and pieces the valuation of £3 million is pretty conservative and is definitely not over the top. Given this was done in 2016 I wouldn't be surprised if it was even a little higher. 

As the valuation states the woodland can be broken up and sold in smaller parcels for increased valuation - see for example sites like www.woodlands.co.uk/. As someone with half an eye on these smaller plots they do shift at a steady pace and being close to London I can't see a problem selling if it came to it. The valuation puts these smaller plots at 7k per acre but looking at the market today I'd say 10k is achievable for some parts (i.e. around the lake) and these rates never include forestry buildings.

Therefore based on valuation and the LTV I'll definitely invest. Even if it took a year or two to sell I can't see how you would lose money. Obviously dyor etc. but I'm definitely in.

That's Lendy !

The new PBL in the pipeline looks good. The borrower seems to be making an effort to hold onto the property with capital repayments and value looks reasonable. The only thing I would query is why the increase in borrowing? Adding up the fees and interest for the old and new loan:

1,159,643 *[1 + 0.04 + 0.02 + 0.2 * (183 + 53)/365] = £1,379,181

vs new loan value of £1,456,253 which is £77k higher. These are rough calculations obviously and I don't know whether the borrower would even have to pay entrance and exit fees but it seems a little strange that the borrower is increasing borrowing after trying to pay down capital this past few months.

I would expect that they have deliberately added a little extra contingency to allow for delays in the new loan going live for additional accrued interest and bonus.
Also in addition to any fees Lendy might charge them they will also presumably be incurring additional costs of their own for legal fees etc. for this loan, as well as possibly wanting some extra available cash to cover upfront costs associated with disposing of the other assets to repay this loan.

Just noticed also - would be good to get an email to pre-investors... unless I missed it. Might have given a chance to take another opportunity if that investment wasn't to materialise.

Seems to be Lendy's new strategy, as the pre-Christmas update said, both DFL08 and 12 would soon have new second charge loans issued.

Although it will be interesting to see how these fare as this first issue of a second charge offers no higher interest rate or cashback incentive over the original terms of PLB133. As such I will be passing.


I think all 3 of these loans are solid, but offering the same terms with only second charge priority does not meet my risk/reward criteria.