withnell
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Post by withnell on Sept 17, 2018 8:37:01 GMT
Can anyone explain why the 1st charge loan is so unpopular? I know the project is behind but the interest is being paid each month (and not like on other projects by adding a new tranche). About 250k available, while the riskier 2nd charge (c. 500k) has only 1k, and a steady stream of purchases
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sarahcount
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Post by sarahcount on Sept 17, 2018 8:45:45 GMT
Why indeed. I think it must be due to perceived liquidity. People think they can sell out easily but run the risk that ultimately something will happen when they are not looking and new SM buyers will dry up suddenly. Not something that I would recommend. We saw the same thing happen with the Scottish Estate. The first charge there might be largely recovered while the second charge could be wiped out.
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rocky1
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Post by rocky1 on Oct 5, 2018 17:57:50 GMT
if all the other DFLs that are relying on sale of units/pods etc make partial repayments like this i might as well put my account in the grand kids names.
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Post by charliebrown on Oct 5, 2018 23:41:12 GMT
This borrower appears to be trying hard to repay the loan, by paying interest to extend and slowly selling units. The problem is, progress is extremely slow. These developments are, it seems, complete yet appear to be struggling to get refinanced. The other thing I noticed is that the security reduction is more than the amount repaid, does that mean the asset value is being eroded, or is it just the usual situation where the asset was overvalued.
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Post by picanto on Oct 6, 2018 9:20:55 GMT
This borrower appears to be trying hard to repay the loan, by paying interest to extend and slowly selling units. The problem is, progress is extremely slow. These developments are, it seems, complete yet appear to be struggling to get refinanced. The other thing I noticed is that the security reduction is more than the amount repaid, does that mean the asset value is being eroded, or is it just the usual situation where the asset was overvalued. I could be mistaken but I think the loan repayment value is the amount paid back to investors after fees from the sales of the units have been taken out. Therefore the security reduction will always be higher than the loan repaid value. I don't think it's anything unusual or anything to worry about.
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adrianc
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Post by adrianc on Oct 6, 2018 12:01:34 GMT
I'm perfectly happy that this one's safe - so much so that I've just put the proceeds of 08's partial repayment back into 08. Unfortunately, I think the whole thing's going to repay fairly soon...
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elliotn
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Post by elliotn on Oct 6, 2018 16:59:39 GMT
This borrower appears to be trying hard to repay the loan, by paying interest to extend and slowly selling units. The problem is, progress is extremely slow. These developments are, it seems, complete yet appear to be struggling to get refinanced. The other thing I noticed is that the security reduction is more than the amount repaid, does that mean the asset value is being eroded, or is it just the usual situation where the asset was overvalued. If loan ltv is 70% and we got £70k of our loan back the security should reduce by the £100k that it was secured against.
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Post by charliebrown on Oct 7, 2018 10:35:39 GMT
This borrower appears to be trying hard to repay the loan, by paying interest to extend and slowly selling units. The problem is, progress is extremely slow. These developments are, it seems, complete yet appear to be struggling to get refinanced. The other thing I noticed is that the security reduction is more than the amount repaid, does that mean the asset value is being eroded, or is it just the usual situation where the asset was overvalued. If loan ltv is 70% and we got £70k of our loan back the security should reduce by the £100k that it was secured against. Ah, that makes sense. Thanks for explaining, elliott.
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elliotn
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Post by elliotn on Oct 7, 2018 12:24:54 GMT
If loan ltv is 70% and we got £70k of our loan back the security should reduce by the £100k that it was secured against. Ah, that makes sense. Thanks for explaining, elliott. And thank you for I think being the 1st person to spell my name properly on here 
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sl75
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Post by sl75 on Oct 8, 2018 7:42:53 GMT
This is how it works but I think moving forward L should change the loan contract. L has a first charge on the property meaning it should get all the money back before the developer gets any profit. In the example, the borrower is taking £30k out for himself each time a flat is sold. It should work that all proceeds are repaid to Lendy reducing the LTV each time until the loan is repaid and the borrower left with the remaining development (his profit). Don't forget that, in addition to the £70k capital repayment, the borrower is also expected to pay us interest (on the whole loan amount, not just the unit sold), and various professional fees (solicitors, marketing agents, Lendy themselves, etc.)
They probably also have ongoing bills to contractors for finalisation / snagging work on the units that have been sold, or on any remaining units that need to be sold.
I very much doubt they get to keep much, if any, of the example £30k as profit.
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xpubman1
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Post by xpubman1 on Oct 8, 2018 13:05:46 GMT
Thankyou....... this is the first sensible and helpful post in a long time....
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elliotn
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Post by elliotn on Oct 9, 2018 7:34:05 GMT
Thankyou....... this is the first sensible and helpful post in a long time.... IMHO #294 was only 5 posts before that nudged it
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Post by picanto on Nov 26, 2018 14:20:11 GMT
Any news on this loan Lendy Support ? The last update said refinance was very close to completion and providing formalities went to plan, it was expected to be repaid by the end of November. This loan is over £9 million and dare I say it, a full repayment with accrued interest may just go a long way in getting the tranches filled in the other loans. |
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rs
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Post by rs on Nov 26, 2018 16:58:31 GMT
Any news on this loan Lendy Support ? The last update said refinance was very close to completion and providing formalities went to plan, it was expected to be repaid by the end of November. This loan is over £9 million and dare I say it, a full repayment with accrued interest may just go a long way in getting the tranches filled in the other loans. Refinance postponed until Feb 2019. Lets hope I'm wrong.
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averageguy
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Post by averageguy on Nov 26, 2018 18:38:29 GMT
Any news on this loan Lendy Support ? The last update said refinance was very close to completion and providing formalities went to plan, it was expected to be repaid by the end of November. This loan is over £9 million and dare I say it, a full repayment with accrued interest may just go a long way in getting the tranches filled in the other loans. Refinance postponed until Feb 2019. Lets hope I'm wrong. Bit optimistic
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