rocky1
Member of DD Central
Posts: 1,139 
Likes: 1,963
|
Post by rocky1 on May 31, 2018 12:19:17 GMT
There’s almost 11 million quid of investors’ money stuck in this loan that’s now not paying any interest. Lendy doesn’t appear to give a damn, as usual. How does that happen? the same way as dfloo4 £14m,dfl017£ 7.5m and£ 40+million in default.so we have££ 60+million of lenders money earning nothing.can we ask lendy how all this has happened. we only lend the money in good faith the rest is out of our control.
|
|
zlb
Member of DD Central
Posts: 1,422
Likes: 333
|
Post by zlb on May 31, 2018 13:05:10 GMT
I think there is a degree of reliance on investors who don't quite know what 'second charge' means, and possibly who haven't been bitten by other loans, therefore have a more positive view. A higher interest rate on second charge might help, but could also flag it as a much higher risk to lenders. Even if the loan is a much higher risk, wouldn't L want to keep a calmer-looking profile? Therefore I don't really know what risk L thinks this loan is. Errr! I thought a 2nd charge loan meant I got two bites at the cherry. Please don't tell me I'm wrong.  there's lots of seconds around here. Secondary market, second charge, second bite. There used to be a shop called Quality Seconds... And there's a new platform opening called second chances run by you know who.
|
|
empirica
Member of DD Central
Posts: 326
Likes: 235
|
Post by empirica on Jun 4, 2018 20:30:15 GMT
My thinking on the subject is that poor (non-existent?) investment flow will be adversely impacting time and budget forecasts and, in turn, the benefits case.
If a project can't prove itself to ultimately be sufficiently profitable, it reduces viability for alternative financing, until it's value reduces _ often significantly below the GDV _ to make it viable again.
Would Lendy offering their share of the interest to investors _ which I believe would take the rate to 18% pa _ encourage sufficient people to invest? Get the project completed and the exit realised.
The recent valuation asserts _ with caveats _ that:
'We have obtained a schedule of existing sales from your Customer. This records that 95 units are "sold” with 21 units available and 3 on hold.'
With that much demand, one would think this should be a comparative cinch to get over the line.
|
|
rocky1
Member of DD Central
Posts: 1,139
Likes: 1,963
|
Post by rocky1 on Jun 5, 2018 5:04:56 GMT
that would be all well and good if you could only believe a word that lendy say. they have proved time and time again their incompetence in the way these DFLs are handled from start to nearly finish.we cant just keep throwing funds into tranche after tranche,extension after extension.lendy and the borrowers do not give a t**s because a deal will be sorted and everybody will be happy to get some of their capital back.interest free loans for a couple of years and pay back half of it sounds good to me.
|
|
gareot
Member of DD Central
Posts: 75
Likes: 63
|
Post by gareot on Jun 5, 2018 8:25:08 GMT
Why would anyone buy the 2nd charge loan at 12% when there’s plenty of the 1st charge loan available at 12%. Why would Lendy launch the 2nd charge under those circumstances, taking us for mugs, yet again. There’s not a snowball’s chance in hell they’re going to get the 1.7m they’re looking for. Lendy la la land. Agreed, also correct me if I'm wrong & apologies if it's been mentioned before but first charge loan holders are getting 12.5% with bonus accrual. So first charge loan has got to go first surely.
|
|
locutus
Member of DD Central
Posts: 1,059
Likes: 1,622
|
Post by locutus on Jun 5, 2018 8:51:53 GMT
Why would anyone buy the 2nd charge loan at 12% when there’s plenty of the 1st charge loan available at 12%. Why would Lendy launch the 2nd charge under those circumstances, taking us for mugs, yet again. There’s not a snowball’s chance in hell they’re going to get the 1.7m they’re looking for. Lendy la la land. Agreed, also correct me if I'm wrong & apologies if it's been mentioned before but first charge loan holders are getting 12.5% with bonus accrual. So first charge loan has got to go first surely. In theory yes but I wouldn't rely on bonuses being paid out... 
|
|
gareot
Member of DD Central
Posts: 75
Likes: 63
|
Post by gareot on Jun 5, 2018 9:30:23 GMT
Agreed, also correct me if I'm wrong & apologies if it's been mentioned before but first charge loan holders are getting 12.5% with bonus accrual. So first charge loan has got to go first surely. In theory yes but I wouldn't rely on bonuses being paid out... What comes first bonus accrual or 2nd charge loan. A bit like the "chicken or the egg" case perhaps.
|
|
gustapher
Member of DD Central
Posts: 144
Likes: 267
|
Post by gustapher on Jun 5, 2018 10:38:10 GMT
Why would anyone buy the 2nd charge loan at 12% when there’s plenty of the 1st charge loan available at 12%. Why would Lendy launch the 2nd charge under those circumstances, taking us for mugs, yet again. There’s not a snowball’s chance in hell they’re going to get the 1.7m they’re looking for. Lendy la la land. Agreed, also correct me if I'm wrong & apologies if it's been mentioned before but first charge loan holders are getting 12.5% with bonus accrual. So first charge loan has got to go first surely. You are all using too much logic. A quick look at the investor activity tab of each loan shows this is not the case. Hardly anything for the 1st charge and plenty of activity on the 2nd charge. Why? 1) The second charge is at the top of the page (this is anecdotal but I'm convinced many people don't scroll down. When DFL006 was extended to 365 days recently it moved more slowly than the other 300+ day loans nearer the top. You could argue it is the loan details causing this but I'm not so sure.) 2) The first charge is listed as negative days remaining and the second charge positive 200+ days 3) Existing lenders with lots in the first charge know that buying more of the first charge doesn't help the job complete. Personally I think either the first or second charge loan look decent but I know I'm in the minority.
|
|
|
|
Post by valuehunter on Jun 5, 2018 12:12:24 GMT
It's bordering on ridiculous that Lendy haven't increased the rate or added cashback on this second charge.
I have a bunch in the first charge and I genuinely hope the second won't fill at this rate even if it delays's the project. It sets a bad precedent if this comes off at 12%
|
|
tx
Member of DD Central
Posts: 300
Likes: 127
|
Post by tx on Jun 6, 2018 7:19:34 GMT
Could the second charge be used to repay the first charge and the first charge can go to another lender? But 1.7m is a bit too low to do that.
|
|
rocky1
Member of DD Central
Posts: 1,139
Likes: 1,963
|
Post by rocky1 on Jun 6, 2018 8:27:46 GMT
i think the 2nd charge loan is to pay interest and extend the first charge loan to whenever the project gets completed.maybe a few more tranches of the 2nd charge loan to come.who knows what lendy will come up with next.
|
|
|
|
Post by charliebrown on Jun 6, 2018 12:21:30 GMT
i think the 2nd charge loan is to pay interest and extend the first charge loan to whenever the project gets completed.maybe a few more tranches of the 2nd charge loan to come.who knows what lendy will come up with next. Just a thought, what is the benefit of that to the borrower? Couldn’t the borrower just leave the 1st charge loan in default and ignore it. Apart from some bonus accrual what has he got to lose? He can then repay when he’s good and ready, or never. If the borrower actually needs more funds to finish the development then that’s a different story. At 1.7m then it looks like it actually includes more funds to finish the development. They’ve only raised ~87k at the moment so it’s not looking good.
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Jun 6, 2018 12:35:50 GMT
I think there is some brinkmanship going on between Lendy and the borrower here.
Lendy know this loan has no chance of being filled
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Jun 6, 2018 12:50:21 GMT
I think they know that as well in a 'we tried to get you funding, but we cannot, so you better find another solution' Even if by some miracle one of the big DFLs repaid in full there is no logical reason to invest in this.
If there is another of those stalemates that we have seen this seems to be an ideal candidate to just pay and complete the build out although I am nervous on the valuation, there are plenty of new build flats in the city.
|
|
will
Member of DD Central
Posts: 98
Likes: 57
|
Post by will on Jun 9, 2018 7:41:02 GMT
According to the developers March update, this was going to be complete in June. Lendy are talking about extending the loan until December. Anyone have an idea of what the expected completion date on this is? Do we know how many flats have been sold already?
|
|
