hazellend
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Post by hazellend on Jun 6, 2018 17:20:47 GMT
yeah...4.8% nothing to write home about I am afraid Shows intent to repay fully otherwise why bother?
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averageguy
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Post by averageguy on Jun 6, 2018 17:38:03 GMT
yeah...4.8% nothing to write home about I am afraid Shows intent to repay fully otherwise why bother? Or just a gesture ...perhaps when more is paid off that intent will be clearer
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averageguy
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Post by averageguy on Jun 6, 2018 17:39:22 GMT
A repayment that ties in with the fortnightly update! Although I'd hope this isn't the completion proceeds from all twelve units. 5% from 12 of 95 units might be a bit problematic even with £1 million for the freehold. (Or are additional revenues expected from elsewhere?) Didn't tie in with the update before that
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empirica
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Post by empirica on Jun 6, 2018 17:44:08 GMT
A repayment that ties in with the fortnightly update! Although I'd hope this isn't the completion proceeds from all twelve units. 5% from 12 of 95 units might be a bit problematic even with £1 million for the freehold. (Or are additional revenues expected from elsewhere?) Didn't tie in with the update before that Errrr... yeah... that's what made it noteworthy? (Or are you making some clever observation that going over my head _ that is entirely possible!)
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mh
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Post by mh on Jun 6, 2018 19:00:34 GMT
yeah...4.8% nothing to write home about I am afraid Shows intent to repay fully otherwise why bother? I'd be inclined to agree with hazellend. I think this is one of the safer investments, and I might well reinvest this capital repayment back into the same loan on the SM (not the second charge loan).
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withnell
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Post by withnell on Jun 6, 2018 19:28:36 GMT
Agreed - People don't exchange on time for all kinds of reasons, including lawyers misplacing paperwork and signatures that don't look enough like that on the ID (Yes, I've had both those happen to me!)
Part of the reason you get 12% is both the liquidity risk and timing risk, while in several loans Lendy don't seem to be making moves fast enough, on this one with clear evidence of unit completions I have fewer worries
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averageguy
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Post by averageguy on Jun 6, 2018 22:33:58 GMT
Didn't tie in with the update before that Errrr... yeah... that's what made it noteworthy? (Or are you making some clever observation that going over my head _ that is entirely possible!) lol..I'll go with the clever observation 
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mh
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Post by mh on Jul 3, 2018 13:45:13 GMT
Just received another partial capital repayment (2.4%), which is good.
However, I'm very concerned to see that this latest repayment of £229,495 has been accompanied by a security reduction of £309,910. Meaning that the Loan to GDV percentage has just gone UP. This seems out of order. Surely the security reduction should not be greater than the capital repayment.
How do others feel about this?
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withnell
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Post by withnell on Jul 3, 2018 13:52:32 GMT
I think it might be tied in to the fact that the partial repayment #1 didn't have any security reduction shown against it so maybe is catching up - but if funds have been released elsewhere then Lendy should let us know - Paul70 can you shed any light? |
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michaelc
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Post by michaelc on Jul 3, 2018 13:54:52 GMT
I think it might be tied in to the fact that the partial repayment #1 didn't have any security reduction shown against it so maybe is catching up - but if funds have been released elsewhere then Lendy should let us know - Paul70 can you shed any light?Fat chance
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dandy
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Post by dandy on Jul 3, 2018 13:58:43 GMT
I think it might be tied in to the fact that the partial repayment #1 didn't have any security reduction shown against it so maybe is catching up - but if funds have been released elsewhere then Lendy should let us know - Paul70 can you shed any light? Probably a reflection of the (totally unexpected and extremely unusual) difference between stated and actual values
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gon
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Post by gon on Jul 3, 2018 14:04:51 GMT
We agree that it is not acceptable to reduce the GDV by more than the partial payment amount and we have emailed Lendy to ask them for their reasoning.
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awk
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Post by awk on Jul 3, 2018 14:11:59 GMT
Without looking at all the detail, if the previous loan to GDV was 59%, then it will have actually have gone down - the capital repayment was more than 59% of the GDV reduction !
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Post by charlata on Jul 3, 2018 16:12:07 GMT
I've not followed this loan, but it's common for the GDV to drop by more than the capital reduction. If a developer sells a £100k flat on a 70% LTV loan, he's perfectly within his rights to keep £30k, and repay £70k. It would be abnormal if he retained more than his equity share, but that doesn't appear to be the case here.
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withnell
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Post by withnell on Jul 3, 2018 18:41:16 GMT
I've not followed this loan, but it's common for the GDV to drop by more than the capital reduction. If a developer sells a £100k flat on a 70% LTV loan, he's perfectly within his rights to keep £30k, and repay £70k. It would be abnormal if he retained more than his equity share, but that doesn't appear to be the case here. That's fine if he's taken out multiple individual loans on each flat - and as per any standard mortgage, the charges are fully satisfied before any additional funds are release. In this case the loan is secured on the whole development, and standard practice is to follow convention and pay down the charges fully from any income before releasing surplus (unless other arrangements are made, eg to provide a working capital facility to assist with further sales)
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