hazellend
Member of DD Central
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Post by hazellend on Dec 4, 2020 13:48:23 GMT
First of all, when I talk about plots I am talking about the units you buy off-plan. Secondly, I am a portfolio landlord therefore, with all the due respect, I think I know what I am talking about. As I said, I have already been in a similar situation in the past. A few years ago I bought an off-plan property in Birmingham city centre. The developer went into administration (another scam...), no premium was paid to the insurer therefore no chance to get the deposit back through an insurance claim, the land was sold on auction to an experienced developer who contact me immediately offering the option to get the deposit back or to wait until the building was completed. I chose the second one. Why did the developer do that? Because, as I said, when you buy an off plan property, you register an unilateral notice in the land registry which remains in force even if the developer goes into administration. Any developer will have to deal with me, once he buys the land. I do not live under the illusion that I will rank ahead of MT on repayment of monies because I know that MT is a preferential creditor. And actually, this is exactly the reason why I do not understand why MT is not acting, being a preferential creditor. I perfectly know that there will not be money left for investors like me after repaying the loan but at least there will be an auction and another developer will buy the land. After 4 years I am tired of waiting with my money stuck in this scam. In any case, I think you are missing the point here. These people are fraudsters, they have no interest in completing the building and no interest in paying back the loan. if you don't understand this, there is nothing else to talk about. Paying interest would be an unusual thing for a fraudster to do. I think the borrower is certainly pushing the boundaries of ethical business. Fraudster applied more up Lendy and it’s borrowers.
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Post by memy on Dec 4, 2020 13:57:41 GMT
If you believe they are not fraudsters, then, as I said, there is nothing else to talk about it.
I have been investing in properties for many years and (luckily) I have never encounter more dishonest people.
Trust me, I would love to be wrong and admit I am mistaken but unfortunately I am too old to believe in fairies.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 4, 2020 14:37:15 GMT
First of all, when I talk about plots I am talking about the units you buy off-plan. Secondly, I am a portfolio landlord therefore, with all the due respect, I think I know what I am talking about. As I said, I have already been in a similar situation in the past. A few years ago I bought an off-plan property in Birmingham city centre. The developer went into administration (another scam...), no premium was paid to the insurer therefore no chance to get the deposit back through an insurance claim, the land was sold on auction to an experienced developer who contact me immediately offering the option to get the deposit back or to wait until the building was completed. I chose the second one. Why did the developer do that? Because, as I said, when you buy an off plan property, you register an unilateral notice in the land registry which remains in force even if the developer goes into administration. Any developer will have to deal with me, once he buys the land. I do not live under the illusion that I will rank ahead of MT on repayment of monies because I know that MT is a preferential creditor. And actually, this is exactly the reason why I do not understand why MT is not acting, being a preferential creditor. I perfectly know that there will not be money left for investors like me after repaying the loan but at least there will be an auction and another developer will buy the land. After 4 years I am tired of waiting with my money stuck in this scam. In any case, I think you are missing the point here. These people are fraudsters, they have no interest in completing the building and no interest in paying back the loan. if you don't understand this, there is nothing else to talk about. I think the borrower is certainly pushing the boundaries of ethical business. Fraudster applied more up Lendy and it’s borrowers. Maybe it depends how really smart they are? 
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eeyore
Member of DD Central
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Post by eeyore on Dec 4, 2020 14:56:48 GMT
First of all, when I talk about plots I am talking about the units you buy off-plan.
Secondly, I am a portfolio landlord therefore, with all the due respect, I think I know what I am talking about. As I said, I have already been in a similar situation in the past. A few years ago I bought an off-plan property in Birmingham city centre. The developer went into administration (another scam...), no premium was paid to the insurer therefore no chance to get the deposit back through an insurance claim, the land was sold on auction to an experienced developer who contact me immediately offering the option to get the deposit back or to wait until the building was completed. I chose the second one. Why did the developer do that? Because, as I said, when you buy an off plan property, you register an unilateral notice in the land registry which remains in force even if the developer goes into administration. Any developer will have to deal with me, once he buys the land. I do not live under the illusion that I will rank ahead of MT on repayment of monies because I know that MT is a preferential creditor. And actually, this is exactly the reason why I do not understand why MT is not acting, being a preferential creditor. I perfectly know that there will not be money left for investors like me after repaying the loan but at least there will be an auction and another developer will buy the land. After 4 years I am tired of waiting with my money stuck in this scam. Thank you for responding and clarifying that "plot" in this case means "apartment". You must have a very large number of properties in your portfolio so that you use a generic term, "plot", for all your properties whether they be houses, apartments, units or whatever! May I also enquire, since I'm naive when it comes to buying "off-plan", about the insurance you say covered the loss of your deposit but has lapsed due to the premium not having been paid by the developer? If the insurance is to benefit those who have risked paying a deposit, why is it not the deposit payers who actually pay the insurance premiums? That way you know the cover exists and is maintained for as long as it's needed. Apologies to the rest of the forum readers for asking questions outside the topic of peer-to-peer lending. It does occur to me that buying "off-plan" in the hope of making a capital gain with only a second- or third-charge on a yet-to-be developed property is risk-taking way beyond my appetite!
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Jaydee
Member of DD Central
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Post by Jaydee on Dec 4, 2020 15:19:55 GMT
Well said TitoPuente this person is under the illusion that they rank ahead of MT on repayment of monies. If it goes into Administration, it is more than likely that all registered UNI's will be ruled out by a Judge, thereby enabling an Administrator to realise a higher sale price for an unencumbered site. Whilst a 25% repayment of the monthly interest has been received, this is the second tranche received in a couple of weeks and shows the Borrowers willingness to make promised payments. As for Development funding, the Borrower is arranging a Bridging Loan to repay the MT loan, not Development funding. Only a few weeks ago, work started on a private development of 300 plus apartments no more than 500 yards from this site. So there is still confidence in the residential market. Javdee, you say that the borrower is arranging a bridging loan to repay the MT Loan. I don't believe that this is case but let's say that this is true. Do you know for how long this is going on? Have you received any evidence about it? Do you know who is the new lender? I would love to get more details about this point, if you have them. If you want more details of the Borrower's actions then contact him directly instead of trying to glean information from this website. I don't think anyone here will give you any more info than you have. Your desire to get more information tends to suggest that you perhaps have an ulterior motive.
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criston
Member of DD Central
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Post by criston on Dec 4, 2020 17:17:17 GMT
First of all, when I talk about plots I am talking about the units you buy off-plan. Secondly, I am a portfolio landlord therefore, with all the due respect, I think I know what I am talking about. As I said, I have already been in a similar situation in the past. A few years ago I bought an off-plan property in Birmingham city centre. The developer went into administration (another scam...), no premium was paid to the insurer therefore no chance to get the deposit back through an insurance claim, the land was sold on auction to an experienced developer who contact me immediately offering the option to get the deposit back or to wait until the building was completed. I chose the second one. Why did the developer do that? Because, as I said, when you buy an off plan property, you register an unilateral notice in the land registry which remains in force even if the developer goes into administration. Any developer will have to deal with me, once he buys the land. I do not live under the illusion that I will rank ahead of MT on repayment of monies because I know that MT is a preferential creditor. And actually, this is exactly the reason why I do not understand why MT is not acting, being a preferential creditor. I perfectly know that there will not be money left for investors like me after repaying the loan but at least there will be an auction and another developer will buy the land. After 4 years I am tired of waiting with my money stuck in this scam. In any case, I think you are missing the point here. These people are fraudsters, they have no interest in completing the building and no interest in paying back the loan. if you don't understand this, there is nothing else to talk about. I am still trying to understand why your deposit funds were not held in a special account or why didn't your solicitor tie it up properly, ensuring any insurance was valid as well. Surely the funds are not just handed over to the developer without any protection.
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hazellend
Member of DD Central
Posts: 2,363
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Post by hazellend on Dec 4, 2020 17:19:19 GMT
If you believe they are not fraudsters, then, as I said, there is nothing else to talk about it. I have been investing in properties for many years and (luckily) I have never encounter more dishonest people. Trust me, I would love to be wrong and admit I am mistaken but unfortunately I am too old to believe in fairies. Seems strange you didn’t learn your lesson from your previous experience to be honest.
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Post by memy on Dec 4, 2020 18:55:12 GMT
Javdee, you say that the borrower is arranging a bridging loan to repay the MT Loan. I don't believe that this is case but let's say that this is true. Do you know for how long this is going on? Have you received any evidence about it? Do you know who is the new lender? I would love to get more details about this point, if you have them. If you want more details of the Borrower's actions then contact him directly instead of trying to glean information from this website. I don't think anyone here will give you any more info than you have. Your desire to get more information tends to suggest that you perhaps have an ulterior motive. Jaydee, I am not in a mood to quarrel with you and I hope you feel the same way. FYI, we received the last update from the developer in May. - They said they had secured a preferred contractor for the development, negotiating a full fixed price contract. They said their involvement gave them greater surety on costs and on delivery because the contractor had wealth of experience which will benefit the project. As I previously said, this contractor has just gone bust. - They said that they were still waiting for some investors to accept to extend the long stop date. They stressed the importance of agreeing to the extension because if extensions of time cannot be agreed, then these runs the risk of the development failing as there is no funds available for refunds. I don't know if this has changed but I would assume it has not. - They said that the funding and sales model of this site going forward will not being relying on any further funds from any existing or new investors. All funds will be institutional, creating a more secure position for all existing and new investors. Institutional funds!?! Seriously!?! Since May we have not received any communications from the developer. My solicitors has sent several emails to the developer's solicitors (by the way, the third solicitor firm involved in this project) without receiving any answers. You keep on repeating they are arranging a bridging loan to repay the MT Loan so I thought you might know something that I don't know. It seems that you and other lenders in this forum are really confident they are actually doing this so I would love to know what evidence you have got about it and, in case they are really doing this, what makes you believe they will succeed in arranging a bridging loan considering that it is more than a year they keep on saying they are "working on it". On the other side, if you don't have any evidence in this regard, why do you keep on repeating they are doing that? In all honesty, a reliable and experienced developer would never get involved in a so big and expensive project without having covered his back. I have never dealt with a developer who "buys" (let's say so) shares of a company to tell the investors: "sorry, I have no funds but I am working on it". Normally a company "buys" another company's shares only if it has already got the funds to complete the project.
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Post by memy on Dec 4, 2020 19:00:53 GMT
If you believe they are not fraudsters, then, as I said, there is nothing else to talk about it. I have been investing in properties for many years and (luckily) I have never encounter more dishonest people. Trust me, I would love to be wrong and admit I am mistaken but unfortunately I am too old to believe in fairies. Seems strange you didn’t learn your lesson from your previous experience to be honest. Unfortunately I invested in this development project BEFORE learning my lesson.
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Post by memy on Dec 4, 2020 19:18:51 GMT
First of all, when I talk about plots I am talking about the units you buy off-plan. Secondly, I am a portfolio landlord therefore, with all the due respect, I think I know what I am talking about. As I said, I have already been in a similar situation in the past. A few years ago I bought an off-plan property in Birmingham city centre. The developer went into administration (another scam...), no premium was paid to the insurer therefore no chance to get the deposit back through an insurance claim, the land was sold on auction to an experienced developer who contact me immediately offering the option to get the deposit back or to wait until the building was completed. I chose the second one. Why did the developer do that? Because, as I said, when you buy an off plan property, you register an unilateral notice in the land registry which remains in force even if the developer goes into administration. Any developer will have to deal with me, once he buys the land. I do not live under the illusion that I will rank ahead of MT on repayment of monies because I know that MT is a preferential creditor. And actually, this is exactly the reason why I do not understand why MT is not acting, being a preferential creditor. I perfectly know that there will not be money left for investors like me after repaying the loan but at least there will be an auction and another developer will buy the land. After 4 years I am tired of waiting with my money stuck in this scam. In any case, I think you are missing the point here. These people are fraudsters, they have no interest in completing the building and no interest in paying back the loan. if you don't understand this, there is nothing else to talk about. Are you overlooking recent case history in relation to paragraph 71 schedule B1 Insolvency Act? The administrators can apply to the court to sell the security free of secured interests. If granted that removes any need for a purchasing developer to deal with you as the usual provisions preventing overreach of a UN1 protecting a sale contract are removed. Some MT lenders will be familiar with this as recent case history relates to another MT loan. It has also appeared in relation to Lendy Huddersfield loans and more recently a development in Newcastle UL If the loan is put into recovery, then a potentially protracted process will be begin, with extra costs and on precedent a poor outcome (as you have alluded to the market in Liverpool is bad) Alternatively, currently lenders get some return on their investment, the possibility of a better outcome and arent actually losing anything by waiting . Could even be the market conditions improve in Liverpool as the council takes action to get building projects going and off the market. I am not overlooking anything. You are right, the administrators COULD apply to the court to sell the security free of secured interests. Then this COULD be granted. There is no certainty it will go that way. In any case, even if it goes that way, this does not mean that if a reliable company buy the land to complete this project they will not "keep on board" the existing investors. At the end of the day, we still need to pay 65% of the selling price. Moreover, there are still more than 200 units unsold. I think that, even for an experienced developer, it wouldn't be so easy to sell so many flats. I believe that it could be convenient for the buyer to maintain the existing investors. Of course, I could be wrong about it, but I still believe this is the only option for the investors.
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criston
Member of DD Central
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Post by criston on Dec 4, 2020 19:23:45 GMT
memy. Are you saying you have actually paid 35%, the exchange contract figure, through your solicitor.
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Post by memy on Dec 4, 2020 19:34:05 GMT
First of all, when I talk about plots I am talking about the units you buy off-plan.
Secondly, I am a portfolio landlord therefore, with all the due respect, I think I know what I am talking about. As I said, I have already been in a similar situation in the past. A few years ago I bought an off-plan property in Birmingham city centre. The developer went into administration (another scam...), no premium was paid to the insurer therefore no chance to get the deposit back through an insurance claim, the land was sold on auction to an experienced developer who contact me immediately offering the option to get the deposit back or to wait until the building was completed. I chose the second one. Why did the developer do that? Because, as I said, when you buy an off plan property, you register an unilateral notice in the land registry which remains in force even if the developer goes into administration. Any developer will have to deal with me, once he buys the land. I do not live under the illusion that I will rank ahead of MT on repayment of monies because I know that MT is a preferential creditor. And actually, this is exactly the reason why I do not understand why MT is not acting, being a preferential creditor. I perfectly know that there will not be money left for investors like me after repaying the loan but at least there will be an auction and another developer will buy the land. After 4 years I am tired of waiting with my money stuck in this scam. Thank you for responding and clarifying that "plot" in this case means "apartment". You must have a very large number of properties in your portfolio so that you use a generic term, "plot", for all your properties whether they be houses, apartments, units or whatever! May I also enquire, since I'm naive when it comes to buying "off-plan", about the insurance you say covered the loss of your deposit but has lapsed due to the premium not having been paid by the developer? If the insurance is to benefit those who have risked paying a deposit, why is it not the deposit payers who actually pay the insurance premiums? That way you know the cover exists and is maintained for as long as it's needed. Apologies to the rest of the forum readers for asking questions outside the topic of peer-to-peer lending. It does occur to me that buying "off-plan" in the hope of making a capital gain with only a second- or third-charge on a yet-to-be developed property is risk-taking way beyond my appetite! This is a good point. Unfortunately insurers don't deal with investors, they deal with developers because the insurance if for the building. The reality is that I have been naive (to say at least...) to invest in this project. I should have investigated more before taking the plunge. I have learned it the hard way. I have bought other 3 off plan properties in 3 different developments. One of these developments have been completed, another one is close to completion and the last one is under construction and it should be completed in Q3 next year. Basically, the development in Liverpool is the only one, currently, that is giving me a headache. In any case, I find this type of investments much more secure and profitable than P2P but this is just the way that I feel.
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Post by memy on Dec 4, 2020 19:36:22 GMT
memy. Are you saying you have actually paid 35%, the exchange contract figure, through your solicitor. Yes, I have already said that. 35% on exchange + 65% on completion. This is one of the options you could choose. They offered investors other options but this was the "cheapest one".
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iano
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Post by iano on Dec 4, 2020 19:45:55 GMT
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Post by memy on Dec 4, 2020 21:00:34 GMT
It's about time!
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