What's on the SM? (L)

Ironically I didn't think the security was sound at all. And I'm not the King of DD.

I invested for strategic reasons and have now sold out. I think we are both better off out of it.

I know the site well, drove past it every day for years and it's a well known problem site. It's known locally as the BCW. But I suppose S by S sounds nicer and enables them to add value even though it's several miles from the sea and it's in the middle of nowhere at UB. Locals have been arguing about it for over 20 years. The western part of it is on a floodplain and is sinking. Development costs would be abnormally high. An all on stilts kind of job. Local infrastructure is inadequate around there. It's also in the XXX National Park. Most locals don't think it will ever be developed and whatever plans have been put forward over the last 20 years have all gone nowhere because of all sorts of issues.

The current owner has owned it for 20 years and every single plan has come to nothing. Is the LY borrower really going to blow £9m on this white elephant of a site?

The exit strategy was to either enter into a development scheme with partner or sell the site on with planning permission. Getting PP in a National Park and selling on will be nigh on impossible except in the long term and no development plans will ever get off the ground IMO. Only 9 months left to run on the loan.

The suggested £9 million purchase price is silly IMO. £12m ridiculous beyond belief. £650k an acre for the western part of the site??? - problematic commercial land in the middle of nowhere , possibly contaminated - blue asbestos problems raised in the past - on the local river floodplain,  rated as high risk of flooding by EA and has flooded several times in the past, in an area with useless transport links?  I'd halve that. And then knock a bit off. Real LTV 100% minimum IMO.

I invested in it because it was 12% and 365 days. A straight strategic decision. I sold out around 1-2 weeks ago after copping about 3 months risk free 12% interest. Given the size of the loan I expect it will soon become illiquid on the SM and therefore on loan size grounds it fails my keep longer than 3 months test. I just don't see how the borrower will be able to repay.

CD - I'm left a bit confused. Perhaps you help.
The LR website shows the site was sold on 7/4/2017 for £4.8m. Which is almost exactly the amount of the loan.
However the LY website states "The borrowers are exercising an option to purchase the site for £9,000,000".

Can you clarify?

I'm on it. Already £3 lighter
 
Edit - £9 lighter. Bought 2 title docs + 1 plan to ensure my DD was thorough.

Large purchase of jm* loan on the sm.. £125000

Big chunks of ALL the default loans gone this morning and overnight. Lendy changes have enticed someone...

Yes. Looks like it - For the first time in a while, around 250k flowing INTO SM, rather than out of it...

Not necessarily (I think). 2 things. 1, people may be cancelling parts for sale in the knowledge that in future, they'll be paid at least some of the interest Lendy previously just kept for themselves (assuming the debt is recovered). They may also be making some investments in what they think are solid loans, but overdue, in the hope of increased rates. 2, If you wanted to have a punt on those higher interest rate loans, especially the default ones, you have limited time to do it as defaulted loans will no longer be tradable under the new terms and there isn't much available on some of them. You might want to make your investment sooner than later.