seeingred
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Post by seeingred on Sept 19, 2017 13:41:56 GMT
Given the upcoming demand for new tranches on major projects it would be in Lendy's own interests to highlight just how successful projects have been to date and (thus) encourage investors to by into the short dated latter stages. To some extent they have done this - on DFL008 : ".....discussions with the Borrower regarding an extension to the loan, although are comforted that they advise 115 apartments have been pre-sold." However a full month later "We have been provided with a schedule of the units from the borrower's solicitors which states they have exchanged contracts for the sale of 85 units and taken reservations for a further 22 units" - which is only 107. Firm indications of money in the bank or contracts exchanged is comforting. With the S** building - PBL120 which is -54 days yet fully funded, you don't have to read between the lines "borrower has sold sufficient units to fully repay the debt and we expect full repayment to have been achieved within the next month." Seems clear enough. Yet even here, some slight question arises in the later update : Our solicitors continue to receive funds from sales of individual units and consent to leases in accordance with an agreed schedule. We are aware that the borrower is giving this focus to ensure the units are completed soon in order to repay this overdue loan." Not negative but not overwhelmingly positive either. The problem with Lendy is that they employ so much waffle and use so many weasel words that even if the news is unquestionably good and the loan is almost a dead certainty to be repaid, and maybe even with a bonus, you always have that lingering doubt - what haven't they told you? The problem of course is that if they gave straightforwardly honest regular updates for the good and safe loans, it would be so much easier to identify the others.  |
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Post by loftankerman on Sept 19, 2017 14:06:01 GMT
The problem with Lendy is that they employ so much waffle and use so many weasel words that even if the news is unquestionably good and the loan is almost a dead certainty to be repaid, and maybe even with a bonus, you always have that lingering doubt - what haven't they told you? I agree. I have dealt with very many companies in my working life and Lendy's general approach is consistent with the ones I have known that were circling the drain. Their obfuscation and ducking and diving is clearly counter productive in terms of lender support but may well be their only remaining option.
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mikes1531
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Post by mikes1531 on Sept 19, 2017 23:36:52 GMT
Firm indications of money in the bank or contracts exchanged is comforting. With the S** building - PBL120 which is -54 days yet fully funded, you don't have to read between the lines "borrower has sold sufficient units to fully repay the debt and we expect full repayment to have been achieved within the next month." Seems clear enough. Yet even here, some slight question arises in the later update : Our solicitors continue to receive funds from sales of individual units and consent to leases in accordance with an agreed schedule. We are aware that the borrower is giving this focus to ensure the units are completed soon in order to repay this overdue loan." Not negative but not overwhelmingly positive either. There may be money coming in, but it must be locked in the solicitors' client account and not available to either Lendy or the developer. If it could be released now, why wouldn't the developer either use it to pay down their Lendy debt or use it to fund the project instead of raising more money via further tranches? Why pay Lendy's high interest rates unnecessarily? I'd guess that this is happening because the money still actually belongs to the buyers, and can't be released until the flats are ready to be occupied. Does anyone have any other possible explanations of what might be happening?
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r1200gs
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Post by r1200gs on Sept 20, 2017 13:21:54 GMT
Firm indications of money in the bank or contracts exchanged is comforting. With the S** building - PBL120 which is -54 days yet fully funded, you don't have to read between the lines "borrower has sold sufficient units to fully repay the debt and we expect full repayment to have been achieved within the next month." Seems clear enough. Yet even here, some slight question arises in the later update : Our solicitors continue to receive funds from sales of individual units and consent to leases in accordance with an agreed schedule. We are aware that the borrower is giving this focus to ensure the units are completed soon in order to repay this overdue loan." Not negative but not overwhelmingly positive either. There may be money coming in, but it must be locked in the solicitors' client account and not available to either Lendy or the developer. If it could be released now, why wouldn't the developer either use it to pay down their Lendy debt or use it to fund the project instead of raising more money via further tranches? Why pay Lendy's high interest rates unnecessarily? I'd guess that this is happening because the money still actually belongs to the buyers, and can't be released until the flats are ready to be occupied. Does anyone have any other possible explanations of what might be happening? I looked at the sales pitch some time back and seem to remember that buyers deposits were being held in escrow.
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seeingred
Member of DD Central
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Post by seeingred on Sept 20, 2017 16:53:59 GMT
With the S** building in N******** we have the update "Our solicitors continue to receive funds from sales of individual units and consent to leases in accordance with an agreed schedule." So despite this building not being finished, actual sales are being completed? I doubt it?
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fp
Posts: 1,008
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Post by fp on Sept 20, 2017 17:23:18 GMT
With the S** building in N******** we have the update "Our solicitors continue to receive funds from sales of individual units and consent to leases in accordance with an agreed schedule." So despite this building not being finished, actual sales are being completed? I doubt it?"Sales completed" and "sales agreed with deposits being paid" are two different things, i'd be tempted to think it is the latter which is taking place.
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will
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Post by will on Sept 22, 2017 15:26:35 GMT
My biggest concern with having a large holding in this loan is the £10m flood of liquidity when (if?) it repays. It'll be a struggle to reinvest with everyone fighting for positions.
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Post by loftankerman on Sept 22, 2017 15:45:46 GMT
My biggest concern with having a large holding in this loan is the £10m flood of liquidity when (if?) it repays. It'll be a struggle to reinvest with everyone fighting for positions. Every silver lining has a cloud eh?
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Post by scrooge on Sept 24, 2017 6:51:01 GMT
My biggest concern with having a large holding in this loan is the £10m flood of liquidity when (if?) it repays. It'll be a struggle to reinvest with everyone fighting for positions. I'll just be glad to get some more of my money out of Lendy.
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Post by d_saver on Sept 27, 2017 16:47:17 GMT
Just for info, the developer was tweeting today that they still expect to be complete 'around Christmas', so all still on schedule. Just a case of selling the few remaining apartments between now and then... I guess it might take a little while longer after completion, but at least the security will be sound.
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Post by d_saver on Sept 27, 2017 17:37:49 GMT
Bird, plane, no - Supersheep....  |
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fasty
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Post by fasty on Sept 27, 2017 21:59:09 GMT
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sussexlender
Member of DD Central
Cheat seeking missile
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Post by sussexlender on Oct 3, 2017 14:37:16 GMT
Hi timmy.
Many thanks for the continued up dates. very helpful.
Best wishes SXLR
PS great new racing car picture of you.
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dp
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Post by dp on Oct 13, 2017 8:55:58 GMT
Drive past every day, by far my biggest loan on Lendy. Happy to hold on to this loan, but feel it will need an extension to finish, failing that should pick up a nice bonus. The flats which have no glazing and therefore are not watertight, surely these are not being fitted out internally yet.
50 working days to go presuming no weekend work.
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Post by GSV3MIaC on Oct 18, 2017 17:10:45 GMT
Didn't quite blow away then .. looks like some came close.
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