sussexlender
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Post by sussexlender on May 22, 2017 10:51:02 GMT
The borrower made a national newspaper last Friday (page 3) if anyone wants to see what has been going on.
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ilmoro
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Post by ilmoro on May 22, 2017 10:59:33 GMT
The borrower made a national newspaper last Friday (page 3) if anyone wants to see what has been going on. page 3 ... national newspaper ... Im afraid to look
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sussexlender
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Post by sussexlender on May 22, 2017 11:04:41 GMT
It is a sign of the "Times". Thankfully, the picture of the borrower is fully clothed. No need to fear (at the moment).
Regards, SXLR
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ilmoro
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Post by ilmoro on May 22, 2017 11:11:19 GMT
It is a sign of the "Times". Thankfully, the picture of the borrower is fully clothed. No need to fear (at the moment).
Regards, SXLR Phew, thought it might be freely telegraphing that when it comes to loans this could be the Emperor's New Clothes. All covered a few pages back on this thread
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Post by vigilante on May 25, 2017 7:34:42 GMT
If i was an investor i would be very concerned. The valuations are way above the actual value of the site and do not reflect anything like the true the value of the property.
The civil court case that has just finished, looks very likely to award massive damages against the owner of the c***** in favour of the three couples who took him to court in relation to the sale of h********s and which will push him into bankruptcy.
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elliotn
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Post by elliotn on May 25, 2017 10:27:48 GMT
If i was an investor i would be very concerned. The valuations are way above the actual value of the site and do not reflect anything like the true the value of the property. The civil court case that has just finished, looks very likely to award massive damages against the owner of the c***** in favour of the three couples who took him to court in relation to the sale of h********s and which will push him into bankruptcy. I think the borrower previously turned down Russian investors signficantly above the valuations. The directors of the Glouc borrower have have been declared bankrupt and that did not lead to a forced sale (would not be in Ly's/investors' interests).
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Post by lendinglawyer on May 25, 2017 11:09:45 GMT
Without having seen the underlying facilities agreement or knowing anything this borrower's structure, I would expect that bankruptcy (of the right person(s)/entity(ies)...) would be an event of default entitling the lender (or, more accurately, Lendy as the lender's agent) to take enforcement action, but obviously not requiring it to. Whether bankruptcy of this individual trips the clause in this particular agreement, and whether in any event exercising the rights that gives the lenders would be a good idea, I don't know.
And goodness only knows how the case against him will turn out re the houseboats.
Whole thing is a complete and utter mess.
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GeorgeT
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Post by GeorgeT on May 25, 2017 12:04:57 GMT
I believe there is some scaremongering going on here from a 1 post wonder.
The LY defaults policy is clear.
Previously, LY has lent to former bankrupts and there are live loans to bankrupts which did not default upon bankruptcy. It is all about the security offered by the asset, the first charge LY has over it and when it is due to be repaid or extended.
I avoided the Swiss house because of a combination of its specialised nature and the size of the loan but not because the borrower is reportedly a bit dodgy. However, I am not necessarily predicting a happy outcome.
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GeorgeT
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Post by GeorgeT on May 25, 2017 12:25:47 GMT
new2p2p asked:
For clarity I have a smallish, 3 figure investment in the smaller loan but avoided the bigger one.
In the hypothetical circumstance you outline, and as an investor, I would prefer LY to adopt the 2nd (kick the problem down the road) position which would give me time to try and sell out.
However, my head tells me that the correct thing to do would be to place the loans into immediate default as there is a blatant inconsistency between bankruptcy and a borrower having the ability/means/willingness to repay £multi millions in loans when in such status. I would suggest such an event should trigger a default clause in the loan agreement and LY should be able to instigate their default recovery procedures at that point.
I'm no expert in the finer points of bankruptcy. That is a layman's view.
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Post by lendinglawyer on May 25, 2017 12:36:36 GMT
If the borrower is the individual and he himself is bankrupt, then you would be really stupid if you did not declare the loan immediately due and payable, prove the debt in the bankruptcy, and take the secured property (subject to the residual value, if any, which would revert to the estate - in the same way that if the bank repossesses your house and sells it, you get any excess they recover over the amount due under the mortgage) outside of the estate available to satisfy the claims of unsecured creditors...
If of course the borrower is a company owned by him which is not itself insolvent, it's a different kettle of fish. Because his personal bankruptcy doesn't automatically infect the property, which is ringfenced in the company.
EDIT: should say I'm not actually an insolvency lawyer of any kind, and certainly not a personal bankruptcy lawyer, but this is my understanding.
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ilmoro
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Post by ilmoro on May 25, 2017 12:44:11 GMT
I believe there is some scaremongering going on here from a 1 post wonder. The LY defaults policy is clear. Previously, LY has lent to former bankrupts and there are live loans to bankrupts which did not default upon bankruptcy. It is all about the security offered by the asset, the first charge LY has over it and when it is due to be repaid or extended. I avoided the Swiss house because of a combination of its specialised nature and the size of the loan but not because the borrower is reportedly a bit dodgy. However, I am not necessarily predicting a happy outcome. Are there live loans to bankrupts? There are loans to two companies where a director/shareholder has gone bankrupt and resigned but I dont think that is the same as a loan in the personal name of a borrower who goes bankrupt. The LY default policy is clear in relation to timescales it isnt in terms of how legal recovery will be pursued. One of the companies with the bankrupt director has had receivers appointed, the other hasnt (per fillings at CH) which given the nature of the security is bizarre Edit crossed with lendinglawyer while CH checking
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GeorgeT
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Post by GeorgeT on May 25, 2017 13:53:31 GMT
You may be right on the bankruptcy point. I was referring to the loans you mention and was not aware of the exact circumstances. I sold out of them all yonks ago when they were still quite young. I have been relying on the LY definition of default - the -180 days thing.
Without having sight of contracts between LY and borrowers I don't know what other circumstances could trigger a default, if any. I go on the publically available LY rules.
To me the 2 key considerations are the 180 day default rule and the risk of platform failure. What individual borrowers get up to or the true market value of the assets in a distressed sale situation has never overly interested or concerned me.
A series of capital losses would destroy confidence in the platform which could lead to platform failure and that is the bigger risk to me. So I watch the number and outcome of defaulted loans with great interest, albeit from a safe distance as I have no intention of getting mixed up in one directly.
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ozboy
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Post by ozboy on May 25, 2017 19:18:07 GMT
Loans can a will default before term, but whether or not we will hear about it is another subject entirely. Some case points... > The Leatherhead loan is likely to have "defaulted" at the borrower's end when the issues surrounding the PP (or lack of it) came to light > The Swansea Hotel had Admin appointed at the business point and thus likely had defaulted > The 2 Hackney loans had forced sales at action (and this was never revealed to investors) after receivers were bought in and thus likely had defaulted The first two did in fact "Default" by way of the term, but the above issues were long before negative 180-days. Likewise, the same can be said about the 2 Somerset loans & Gloucestershire loans With LY, Default at the borrower's end isn't necessarily the same our end (and vice-versa) - however, It (IMO) should be; a default should be indicated when it becomes apparent that repayment is unlikely, regardless of what stage it is at. I'm very surprised the FCA hasn't taken a closer look with regards to what is considered a "Default" (however, I do wonder what the FCA actually do...) Football Association ...................
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ozboy
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Post by ozboy on Jul 8, 2017 21:50:36 GMT
I happened upon this monstrosity domiciliary edifice whilst out gaily gamboling along the river bank on a sunny day last week - God it's an ugly building. IMHO of course. But do not fret, I am reliably informed, by those in the know, that potential Buyers who possess the large sums to buy such baubies, are completely devoid of taste. So you're all safe, it will sell. Eventually.
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elliotn
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Post by elliotn on Jul 9, 2017 0:50:05 GMT
I happened upon this monstrosity domiciliary edifice whilst out gaily gamboling along the river bank on a sunny day last week - God it's an ugly building. IMHO of course. But do not fret, I am reliably informed, by those in the know, that potential Buyers who possess the large sums to buy such baubies, are completely devoid of taste. So you're all safe, it will sell. Eventually. Always good to get a site visit/local knowledge
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