webwizard
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Post by webwizard on Mar 4, 2018 8:59:15 GMT
Lendy aren't exactly having a lot of success with DFL035, the second charge loan for DFL008 that went live with 1% CB a few days ago. Two-thirds of that £420k loan wasn't taken up by pre-funding and is now sitting on the SM. If some of that still remains on the SM at the end of the month when the CB offer expires, then Lendy will have a really hard sell on their hands. In that case, I'd expect Lendy to come up with a way to extend the CB deal, but they'll still have a problem because the current tranche is is only about a quarter of what they're needing to raise for DFL035. How long can the borrower wait for the DFL035 funding before construction grinds to a halt for lack of funding? ... and then there is a £5.2M loan in the pipeline.... I cannot see that getting filled in the current climate.
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mikes1531
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Post by mikes1531 on Mar 4, 2018 16:14:02 GMT
Lendy aren't exactly having a lot of success with DFL035, the second charge loan for DFL008 that went live with 1% CB a few days ago. Two-thirds of that £420k loan wasn't taken up by pre-funding and is now sitting on the SM. If some of that still remains on the SM at the end of the month when the CB offer expires, then Lendy will have a really hard sell on their hands. In that case, I'd expect Lendy to come up with a way to extend the CB deal, but they'll still have a problem because the current tranche is is only about a quarter of what they're needing to raise for DFL035. How long can the borrower wait for the DFL035 funding before construction grinds to a halt for lack of funding? ... and then there is a £5.2M loan in the pipeline.... I cannot see that getting filled in the current climate. I also can't see a successful funding of the £5.2M loan any time soon. And especially not inasmuch as £8M of the £10M DFL005 repayment -- that we were led to believe was imminent -- is in the process of being put off for a further 4-6 months.
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hazellend
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Post by hazellend on Mar 4, 2018 16:59:31 GMT
Lendy could give 3-5% cashback if they need to.
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mikes1531
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Post by mikes1531 on Mar 4, 2018 21:02:29 GMT
Lendy could give 3-5% cashback if they need to. Could they afford that? Are their up-front fees actually that large? If not, where would they get the funds to pay the CB?
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awk
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Post by awk on Mar 5, 2018 7:27:27 GMT
“...this [loan] will not be considered until some of the other sites we are currently funding have been completed and sold/refinanced”. For completion that presumably means Block A in the first instance. That would release 3.5M. Ly speak in the plural so there may be quite a bit more funds available to help fund this loan. It’s poorly worded, but I think that they will not consider the follow-on development funding (and not the initial PBL) until other loans repay
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Post by captainconfident on Mar 5, 2018 16:06:39 GMT
So, in 1.5 months, a window cleaning thing went up and down a few times. Did I miss anything else? Oh yes, if I'm going to visit Liverpool, must pack an umbrella.
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mikeymike
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Post by mikeymike on Mar 8, 2018 13:39:47 GMT
Thanks for the new pics. Lovely views if you can afford them and have a head for heights. How long now before completion??
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Post by Companion Cube on Mar 8, 2018 20:55:23 GMT
I've always liked this loan but I'm mystified as to why is has so much on the secondary market. Does anyone have any theories? It seems to be making progress and surely the developer wouldn't allow this to default and walk away from his vast profits. I can only chalk this up to the loan may repay soon and it would be a massive amount for us lenders to find a home for the money in one go.
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michaelc
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Post by michaelc on Mar 14, 2018 17:36:50 GMT
From a very, very quick review of this (despite me having a 4 figure sum in it), this looks pretty good and I'm also impressed (well I guess I shouldn't be impressed it should be normal) that more funding has been raised by a second loan rather than trying to increase the LTV of the existing one.
Could this be the beginning of green shoots for Lendy?
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sl75
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Post by sl75 on Mar 15, 2018 15:12:20 GMT
From a very, very quick review of this (despite me having a 4 figure sum in it), this looks pretty good and I'm also impressed (well I guess I shouldn't be impressed it should be normal) that more funding has been raised by a second loan rather than trying to increase the LTV of the existing one. Could this be the beginning of green shoots for Lendy? [my bold in quote] The second loan has not yet raised any money, as it's still in the pipeline. Right now, it's only showing the default interest rate of 12%, and is not offering any cashback. With plenty of the original loan available on the secondary market on the same terms (12% interest rate, and no cashback), but benefitting from a first charge on the security, I cannot see how more than a small fraction of the second loan will get funded (e.g. by inattentive investors with default pre-funding set, of which there are probably very few left due to Lendy's past practices having caused them to become seriously over-exposed to the large multi-tranche DFLs). Later in the loan's life-cycle, if repayments start arriving bit by bit as each unit is sold, rather than a single re-finance, perhaps the second charge loan will become more attractive to some investors even on the same basic terms, because it should continue to pay interest for a little longer, assuming the first charge loan gets priority access to the repayments.
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michaelc
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Post by michaelc on Mar 15, 2018 15:29:02 GMT
From a very, very quick review of this (despite me having a 4 figure sum in it), this looks pretty good and I'm also impressed (well I guess I shouldn't be impressed it should be normal) that more funding has been raised by a second loan rather than trying to increase the LTV of the existing one. Could this be the beginning of green shoots for Lendy? [my bold in quote] The second loan has not yet raised any money, as it's still in the pipeline. Right now, it's only showing the default interest rate of 12%, and is not offering any cashback. With plenty of the original loan available on the secondary market on the same terms (12% interest rate, and no cashback), but benefitting from a first charge on the security, I cannot see how more than a small fraction of the second loan will get funded (e.g. by inattentive investors with default pre-funding set, of which there are probably very few left due to Lendy's past practices having caused them to become seriously over-exposed to the large multi-tranche DFLs). Later in the loan's life-cycle, if repayments start arriving bit by bit as each unit is sold, rather than a single re-finance, perhaps the second charge loan will become more attractive to some investors even on the same basic terms, because it should continue to pay interest for a little longer, assuming the first charge loan gets priority access to the repayments. I didn't mean to imply that it had been raised already. Taking as a whole sentence I didn't read it the way you highlighted those three words but apologies if it wasn't as clear as it could have been. The point I was making was at least they weren't altering the charge for existing lenders as they have done in other loans. Whether or not lenders decide to buy into a second charge loan is up to them but that is the right way to finance it.
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webwizard
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Post by webwizard on Mar 19, 2018 9:29:54 GMT
Just received a mass email sent to everyone working in the NHS about this development. Interesting that the completion date is stated as April 2018.  |
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webwizard
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Post by webwizard on Mar 19, 2018 9:31:41 GMT
Second image from mailing (I have blanked out the reference to the property)  |
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Post by investor1925 on Mar 20, 2018 12:57:44 GMT
Hopefully they'll sell a few & not need the 2nd charge loan
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Post by Companion Cube on Mar 20, 2018 20:33:08 GMT
Hopefully they'll sell a few & not need the 2nd charge loan What's to stop them just keeping the money rather than paying down the loan? If they sold 1 unit for say £130k then would the asset value reduce by £130k (thus raising the ltv) or are they legally obligated to pay off some of the loan? I guess that our first charge status would stop them taking the money from sold units but I'd like to know for sure.
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