As for this one... The val doc doesn't mention that, lovely building and views notwithstanding, it's not the most - umm - sensually relaxing of holiday locations. If you look at the aerial shots, you'll see some industrial chicken sheds ENE. There are more now in the fields immediately SW, not shown on the google satellite pics (which are coming up to four years old if they're contemporaneous with the ones of our house, a handful of miles away as the crow flies). One of the nearer neighbours is the operational base of the local septic tank emptiers. The oval worn in the field just E is the local grasstrack motorsports course. It's a whiffy and occasionally loud location, even ignoring what passes for a very busy road in this neck of the woods, the main trunk to points west.
When the rate increased, I dived in.
I still think it is viable, but I think somebody's cutting their losses.
I finally popped in here today, although I kept my lender hat well hidden. Not to eat - although I still plan to - but they're one of the venues in a local art/craft weekend.
I'm very impressed with everything the owners/operators have done. It's a truly beautiful place, very nicely done, and very well set up - and they seem like genuinely lovely people. They're disappointed not to have the accommodation up and kicking quite yet - there's been some final snags, but they're weeks away. They're also imminently opening a shop in another part of the site for their homeware business. Business is apparently doing well, and increasing all the time.
However... My misgivings about the sensory effects of the location really were justified. The neighbouring chicken sheds made their presence very known on the breeze... and traffic noise from the trunk road they're on did not help one bit. I genuinely hope the accommodation succeeds, but I'm not sure I'd be wanting to stay too long.
With a heavy heart, we’ve decided to temporarily close the doors to T** C***** S*** in light of the devastating events that are affecting us all right now. It’s perhaps only a matter of time before this incredibly difficult decision was made for us anyway by the powers that be. We want to make sure that we hold enough resources to bounce back once the storm clouds have cleared.
Thank you all so much for your support so far. Please stay well, keep safe and look after each other. We’ll see you on the other side.
Love M, L and the amazing P****** team x
Now, what do the loan updates say?
August - Further to discussions with the borrower, we can confirm that a refinance offer has been agreed. The Solicitors are instructed and matters are moving forward, with the completion aimed for the end of August 2019. No further action will be taken on possession proceedings prior to 31st August 2019 on the basis the refinance is proceeding.
September - Further to last month’s update the borrower has provided outline terms of a potential refinance, however this does not provide a satisfactory outcome for investors so we have asked the borrower to reconsider their offer. The appointed LPA receiver’s solicitors have already obtained an order for possession of the property and if a satisfactory proposal for refinance can not be agreed, then the LPA will need to consider the next steps.
October - The borrower has failed to provide any evidence or ability to be in a position to repay the outstanding debt. We are considering what action to be taken following discussions with our solicitors.
...and here we are in March... Meanwhile, their Sunday lunches appear to sell out regularly.
Let's have a conversation, absolutely. But why not do it here? Registering to comment is quick and easy.
So what do us lenders know? Only what Ly have told us... Maybe you can't see that, so I'll precis it:
As we both know, the loan was initially drawn down in Feb 2017.
Tranche 1 was £470k for nine months. Tranche 2 came along a couple of weeks later, taking it to £650k for nine months. Tranche 3 mid-April, then Tranche 4 in May taking it to £900k. Tranche 5 in August. The term was formally extended by six months in November 2017. By April 2018, and the opening of the C***** S***, we were up to Tranche 9 with a reassurance that refinancing would happen in time for the agreed term expiry. It's showing on the platform now as £1.25m borrowed.
May 2018 was the first loan comment about the loan being overdue for repayment.
The loan comments state that receivers weren't appointed until August 2018, once your attempts to refinance fell through.
Then by late September 2018, there was another plan involving equity investors... By the start of November 2018, that had fallen through, too, and we were being offered a significant shortfall in our capital. That was when seeking vacant possession was first mentioned.
February and March 2019 saw further refinancing and purchase offers on the table, but they fell through.
In May 2019, Ly hit the skids and RSM came in... A year after the amended date, two and a quarter years into the original nine month term.
In July 2019, the courts agreed a 28-day possession order, but it didn't take long for that to be put on hold to try to rescue the situation.
By September 2019, there was talk of another refinance.
But by the end of October 2019, we were being told there was no sign of repayment or refinance... So, by that last comment we were already a year and a half past the repayment being due. And that's nearly a year ago now.
That's what we know of this situation. Perhaps that's not quite the same as the view from your perspective? So tell us. But doing half the story on Facebook seems a bit... public... don't you think? Do you really want all your customers knowing this fairly sorry timeline...? Remember, as a lender, I'm contractually bound not to <hides cape, puts underpants back inside> reveal my identity to a borrower.
Meanwhile, here we are, two and a quarter years after that first "overdue" comment, over three and a half years after we lent you the money for a year... and we'd quite like it back. "All of it" would be very nice. "Most of it" will be acceptable by now. Even "some of it" would be an improvement from our perspective...
I'm on your side. I want you to succeed. Your place is lovely, and has immense scope. Yes, I have reservations about the location (and you can't really say I'm wrong, can you?) - but it's such a shame your plans to develop the site haven't got further forward - even before the current situation - and I agree with you about re-openings in the present climate.
We're not the greatest fans of Ly here, these days, either... So if we're all being lied to... It'd be nice to hear your side. Right now, we're all thinking "Yep, perhaps they did behave badly, but only after they needed to bring in the recoveries because you guys weren't repaying..." - and frankly, with a lot of other loans, a bit more aggression in the recovery department would have been welcome.
I am sure all these irritations are annoying to the borrowers. But I am more concerned with the lenders who have handed over more than £1.25 million and received little in return. Obvious questions for example why no interest has been serviced for over two years go unanswered. I’m sorry, but I cannot feel sorry for the borrower while my money is funding their current business with no return or prospect of recovery.