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Post by skint4achange on Mar 21, 2018 8:30:02 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. [My Bold] I can, by people who already hold large sums in the first charge loan. If I was going to invest further in this DFL (And I would if I had funds readily available right now) I would buy the 2nd charge over the first. The reason? The first charge loan has already been funded and buying from the SM would not help this DFL to complete. If I bought into the 2nd charge loan I have a greater chance of ensuring that the DFL completes on time, within budget and all the investors go home happy with their 12% earnings.
I do not see any advantage for anyone already in this DFL to buy from the SM. Those funds in the first charge loan are already in the market and have been handed over to the developer. By buying from the SM you place the DFL in more danger of not completing.
While on some DFL's I would be worried about having a large SM queue, I think that this loan is one of the safest loans on Ly at present.
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Post by skint4achange on Mar 21, 2018 8:32:33 GMT
Hopefully they'll sell a few & not need the 2nd charge 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. The same thing that stops you from selling your house and putting 2 fingers up at the bank manager, a FIRST charge over your property.
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victors
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Post by victors on May 5, 2018 11:39:53 GMT
Any idea what's happening to this loan?. Interest now accruing and new loan has been on the pipeline for weeks.
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Post by brightspark on May 5, 2018 18:12:18 GMT
Either they have to find the money to finish the job from some other finance institution or they have to increase the interest rate on the new tranches to tempt lenders. Were loans due to repay made to pay up rather than being granted extensions some money would likely be invested in DFL012.
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rocky1
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Post by rocky1 on May 8, 2018 10:59:48 GMT
i put a fairly large amount into this in early feb 2017 so am not happy to risk any more on this project. my question is this. my funds are in a first charge loan. this next one is a second charge are lendy going to role exsisting investors into this somehow.
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Monetus
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Post by Monetus on May 8, 2018 11:01:42 GMT
Presumably also when the 2nd charge launches the interest will be brought up to date on this loan so that it's not rolling?
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gustapher
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Post by gustapher on May 8, 2018 11:13:22 GMT
i put a fairly large amount into this in early feb 2017 so am not happy to risk any more on this project. my question is this. my funds are in a first charge loan. this next one is a second charge are lendy going to role exsisting investors into this somehow. No, you will still be in the first charge loan. The second charge loan is just that - separate and ranking behind the first charge.
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Yintara
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Post by Yintara on May 8, 2018 11:19:29 GMT
Presumably also when the 2nd charge launches the interest will be brought up to date on this loan so that it's not rolling? I'd imagine some of the second charge loan would go towards paying the interest on the first charge loan when/if it formally extends. As a sidenote, I was checking out some property websites the other day and a fair few apartments were sold or under offer, which is encouraging. Still lots for sale though, despite the agent's 'last few remaining!' claims. Unsurprising with this type of development though, most people want to buy a flat and move in, not have to wait an ever-extending number of months until construction completes. Sales will hopefully accelerate once a definite completion date is in sight.
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rocky1
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Post by rocky1 on May 8, 2018 11:56:41 GMT
do we think that lendy can fill a second charge loan for £1.8m any time soon. dont forget we need to fund tranches promptly according to the lendy bible.
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Jeepers
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Post by Jeepers on May 8, 2018 12:15:53 GMT
When there's plenty of the first charge loan to be had on the SM, i'd say no. So we'll be getting telling off  |
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Yintara
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Post by Yintara on May 8, 2018 12:27:38 GMT
do we think that lendy can fill a second charge loan for £1.8m any time soon. dont forget we need to fund tranches promptly according to the lendy bible. There'd have to be a healthy cashback and/or increased interest rate offer. I thought Lendy had a fair bit of cheek to tell us off for not funding further tranches of recent loans when they tell us repeatedly to diversify and not go above our risk tolerance level. When I invest in a loan I generally put in my limit to start with, no one told me I'd be expected to fling further cash at them whenever they feel like asking for it for potentially years to come.
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Post by Companion Cube on May 8, 2018 14:18:29 GMT
do we think that lendy can fill a second charge loan for £1.8m any time soon. dont forget we need to fund tranches promptly according to the lendy bible. There'd have to be a healthy cashback and/or increased interest rate offer. I thought Lendy had a fair bit of cheek to tell us off for not funding further tranches of recent loans when they tell us repeatedly to diversify and not go above our risk tolerance level. When I invest in a loan I generally put in my limit to start with, no one told me I'd be expected to fling further cash at them whenever they feel like asking for it for potentially years to come. They can "expect" as much as they like as far as I'm concerned. They can whistle for it too. I'm getting more concerned about further tranches paying the interest on late tranches. Lendy is starting to feel like a Ponzi scheme. I believe though that this particular loan has enough tangible assets to not be a problem in the end but I will not be investing any more just in case.
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gustapher
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Post by gustapher on May 8, 2018 14:50:18 GMT
Despite my general caution on Lendy I probably will pile into this second charge loan. To me this looks as good a bet as any on the platform as long as enough people fund it.
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Mousey
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Post by Mousey on May 8, 2018 15:11:43 GMT
Despite my general caution on Lendy I probably will pile into this second charge loan. To me this looks as good a bet as any on the platform as long as enough people fund it. Why when there's £217,000+ available on the secondary market in the first charge loan?
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gustapher
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Post by gustapher on May 8, 2018 15:34:06 GMT
Despite my general caution on Lendy I probably will pile into this second charge loan. To me this looks as good a bet as any on the platform as long as enough people fund it. Why when there's £217,000+ available on the secondary market in the first charge loan? I've bought some of the first charge from the SM already. I agree that logically it seems safer but the fact is all the first charge parts (including mine) are at increased risk unless the second charge gets funded. It is a dilemma. Do I buy the first charge and hope others buy the second charge (which increases net funding for the project by zero) or do I buy the second charge and increase the the chances of the entire project completing but risk lower recovery if it all goes pear-shaped? Ultimately the parts on the SM are all funded and they are just people looking to get out. With sentiment as it is even if I had 200k spare I'm sure there would be plenty of others lining up to sell. It achieves nothing. The project looks good to me so if it gets over the line then it would be a thumping win for Lendy even with the other problems. It could transform the platform and sentiment overnight. So... although the decision is not 100% made, on balance and when looking at the bigger picture and my entire portfolio of loans, there is a certain logic to funding the second charge over the first.
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