DFL012 H********* Quay, Liverpool DEFAULT (Partial Recovery

Or were looking to subordinate Lendy's debt or raise the third party debt on a pari passi basis.

It's only last week Lendy were asking investors to plough another £1.7m in, throwing good money after bad.

It wouldn't have solved the problem, just prolonged it and increased the total loss.

But hey, Lendy is confident they can still recover outstanding capital so nothing to worry about.

Best get your binoculars in front of those rose tinted spectacles.

Sad to see this one go south. Hard to see how any amount of D/D at the outset could have predicted it, just like DFL004. But, in fairness, I agree that decisive action now is the right thing, although we could have skipped the doomed 2nd charge loan and saved a bit of time. Surely to goodness there is no way a building like this, as far advanced as it is, will not be completed?

I only have a small slice of this, and the few other loans I have left with L, so if there is a haircut at the end of the day I won't be out by much. Fingers crossed for those of you with substantial sums in it.

I've no wish to talk L down. When it was good, it was good. But it was evident to me a year ago that they were intent on growing too fast, and over-reaching themselves in the process. It was bound to result (I hope not end) in tears.

I hope L are, as they say in Liverpool, 'having a word with themselves'. This is a testing time, and they can do one of two things:

1) Just say 'Oh well, that was good while it lasted, but it isn't fun anymore', and walk away, or
2) Get real about recoveries (from my recent experience, they could learn a lot from some other providers like MT); get real about transparency to investors (in which regard they could learn a lot from AC); and altogether make it their mission to restore investor confidence.

I sincerely hope, for them and investors, that they choose the latter. Not much point in them bringing more loans to the platform until they have completely overhauled their business model and lowered their sights a lot.

As someone who knew nothing about property loans 3 years ago, I have learned a lot (mainly, that it isn't for me, just as stocks and shares no longer are). My current estimate is that, at the end of the day (which could be a year or two away), I won't have lost any money, but I won't have made any either. So I will have paid for the lesson with my time only.

Anyway, one should always end on a positive, so I wish L and all investors the best of luck, but, as they say on Dragons' Den, 'I'm out'.

Not wishing to be pedantic, but if there was a television in the room it could not accurately be described as 'empty'.

I suspected that progress here was slow in the previous months, and the second charge stuff was an indication that there is no more cash.

Don't have much faith in Lendy I'm afraid. I believe they will look at the build out option but going on the remaining works the monies to front up are substantial. Do they have £1m to front up, given that customer deposits are ring-fenced (I hope)?

The most likely scenario to me is what we have seen from several borrowers, allow the loan to run into difficulties, let investors and Lendy stew for a couple of months, then offer to buy the whole thing back at a discount.

It doesn't help that you seem to get people posting stuff like 'I'd be happy to get 70% capital back' etc etc

I went to a property seminar recently, one of those 'how to buy property without any money down' - the sort of thing that tries to encourage would be property investors to ask for money from friends, family, business angles etc etc - lets just say that P2P is known to be a soft touch in these circles.

It is not solid.  In their latest update  Lendy gave no assurance of repayment of interest. It did intimate that capital might be repaid.   Lending is a risk business and for me because of the poor risk/reward ratio Lendy has been a no go area for around 9 months.  It is not something I regret.