SteveT
Member of DD Central
Posts: 6,875 
Likes: 7,924
|
Post by SteveT on Jun 23, 2018 15:42:45 GMT
Hardly an “obscure type of insurance”. Pretty much all new homes come with an “NHBC warranty” or equivalent.
|
|
richox
Member of DD Central
Posts: 66
Likes: 120
|
Post by richox on Jun 23, 2018 23:41:40 GMT
Quite right Steve, and that's exactly what this development should have. So what's this Structural Defects insurance that is holding everything up and why has it only just emerged? Far as I know NHBC certificates are confirmed through a site inspection prior to practical completion, and an NHBC Buildmark cover note is then issued. That was supposed to have been months ago. Has practical completion been achieved ot not? Is structural defects insurance something different to the NHBC warranty? Could it be that the NHBC people are not happy with what has been built?
|
|
SteveT
Member of DD Central
Posts: 6,875
Likes: 7,924
|
Post by SteveT on Jun 24, 2018 5:57:24 GMT
NHBC is the largest and best known building warranty (structural defects insurance) provider but there are several others, including some that insure buildings already up to a year old. Google is your friend.
|
|
richox
Member of DD Central
Posts: 66
Likes: 120
|
Post by richox on Jul 8, 2018 21:42:22 GMT
Yes, but just try selling a newbuild residential development for anything like a reasonable price without an NHBC or equivalent guarantee. And remember that Lendy told us on 15th September 2017 that "The borrower also advised that the sale of 9 units are already progressing through legals with sale prices at or above those quoted within the valuation report."
We have still had no confirmation that the "Structural Defects Insurance" issue (which according to Lendy on 8th June 2018 was necessary for refince/sales to go ahead) has been sorted out. So why was this not dealt with when the units were supposedly under offer nearly a year ago.
Although Lendy might have said on 25th May that they "have no doubt that full repayment will be achieved in due course", and you might be laid back about repayment of your cash, this loan is now over 180 days overdue. That's a default in everyone's book. Just read back through the updates over the last year and then give this borrower a credibility rating.
I hope you are right and we do receive repayment with interest in the near future, but I'm not holding my breath.
|
|
|
|
Post by valuehunter on Jul 9, 2018 6:29:20 GMT
Yes, but just try selling a newbuild residential development for anything like a reasonable price without an NHBC or equivalent guarantee. And remember that Lendy told us on 15th September 2017 that "The borrower also advised that the sale of 9 units are already progressing through legals with sale prices at or above those quoted within the valuation report." We have still had no confirmation that the "Structural Defects Insurance" issue (which according to Lendy on 8th June 2018 was necessary for refince/sales to go ahead) has been sorted out. So why was this not dealt with when the units were supposedly under offer nearly a year ago. Although Lendy might have said on 25th May that they "have no doubt that full repayment will be achieved in due course", and you might be laid back about repayment of your cash, this loan is now over 180 days overdue. That's a default in everyone's book. Just read back through the updates over the last year and then give this borrower a credibility rating. I hope you are right and we do receive repayment with interest in the near future, but I'm not holding my breath. If you're worried about this one you can sell with no queue atm. edit: (Loan has just passed the 180 day mark and entered the 'non-performing' category thus no queue) Personally I 5x'ed my stake once the bonus hit the 2% mark and have steadily increased as it's reached 3% Bit of a gamble sure, but the effective return is huge with the bonus...and even if this defaults I think a full recovery with interest + bonus is very likely
|
|
|
|
Post by brightspark on Jul 9, 2018 7:14:01 GMT
Along the way the IMS will presumably have flagged up any lack of structural warranties? This stalling has a whiff of a developer delay simply to sound out if they can renegotiate. The longer the situation drags on the weaker becomes the position of lenders as the debt increases.
|
|
richox
Member of DD Central
Posts: 66
Likes: 120
|
Post by richox on Jul 10, 2018 18:22:28 GMT
Could there be a major problem which is too costly to rectify and which is making the flats unsellable? If so and Lendy didn't know about it then there will be serious questions about their due diligence/monitoring procedures. If so and they did know about it there will be serious questions about their behaviour. Let's hope for everyone's sake that whatever has caused this loan to turn "non performing", as they euphamistically choose to call it, can be overcome in the very near future.
|
|
|
|
Post by loftankerman on Jul 10, 2018 19:42:14 GMT
Hello, Do you do car insurance?
Ah good, I’ve just driven my car through a wall and into a river so I’m going to need some. Can you give me a few competitive quotes?
What do you mean, insurance doesn’t work like that?
|
|
richox
Member of DD Central
Posts: 66
Likes: 120
|
Post by richox on Jul 11, 2018 8:18:49 GMT
Don't confuse the shark infested waters that you are now swimming in with the lily pond that you might have come from.
|
|
richox
Member of DD Central
Posts: 66
Likes: 120
|
Post by richox on Jul 23, 2018 15:32:07 GMT
I've asked Lendy which estate agents are/have been marketing the flats, and where they are being advertised. Must be somewhere as the borrower has been working hard on the sales for several months. Lendy responded "Unfortunately, we cannot go into any further detail than what is already provided at this point in time." Does anybody here know the answers to these questions?
|
|
69m
Member of DD Central
Posts: 122
Likes: 215
|
Post by 69m on Jul 23, 2018 18:22:29 GMT
I've asked Lendy which estate agents are/have been marketing the flats, and where they are being advertised. Must be somewhere as the borrower has been working hard on the sales for several months. Lendy responded "Unfortunately, we cannot go into any further detail than what is already provided at this point in time." Does anybody here know the answers to these questions? Following last Friday's inadequate cut-and-paste update, I asked Lendy some similar questions. I received exactly the same response as you. Looking on Rightmove, there is a new-build apartment block (W******* W****) being marketed in the approximate location of this development. I doubt it's DFL024, though.
In the absence of any meaningful information from Lendy, I suspect that something has gone seriously wrong with this build. In December 2017 the flats were supposed to be practically complete and sales were going to be finalised by the end of February 2018. However, for reasons unknown, the borrower is struggling to secure a refinancing deal seven months later.
|
|
|
|
Post by charliebrown on Jul 26, 2018 13:55:35 GMT
I've asked Lendy which estate agents are/have been marketing the flats, and where they are being advertised. Must be somewhere as the borrower has been working hard on the sales for several months. Lendy responded "Unfortunately, we cannot go into any further detail than what is already provided at this point in time." Does anybody here know the answers to these questions? Following last Friday's inadequate cut-and-paste update, I asked Lendy some similar questions. I received exactly the same response as you. Looking on Rightmove, there is a new-build apartment block (W******* W****) being marketed in the approximate location of this development. I doubt it's DFL024, though.
In the absence of any meaningful information from Lendy, I suspect that something has gone seriously wrong with this build. In December 2017 the flats were supposed to be practically complete and sales were going to be finalised by the end of February 2018. However, for reasons unknown, the borrower is struggling to secure a refinancing deal seven months later. The irony of complaining to Lendy about cut-paste updates and them sending you a cut-paste reply. This just sums them up. I wouldn’t expect anything else.
|
|
richox
Member of DD Central
Posts: 66
Likes: 120
|
Post by richox on Jul 28, 2018 0:33:22 GMT
Looking through the documentation has made me speculate upon whether there might be a problem with the concrete slab that the flats are built on.
Para 5.2 of the Valuation document says : in the region of £290,000 “as confirmed by your applicants quantity surveyors”
has been expended in the ground works, floor slab and utilities.
Para 9.1 says: At the time of
inspection (18/1/17), the foundations, groundworks, concrete slab and drainage works had
been completed and we understand that this work has previously been approved by
the Local Authority building inspector but this should be confirmed.
Update of 28/9/17 says: Site set up complete Foundations and ground floor slab complete (by others) Remedial works to the existing ground floor slab complete. (NB this update was the first to provide specific IMS comment although the loan was completed on 9/5/17.)
There seems to be a question over who actually laid the concrete slab. Was it ever actually approved by the Local Authority Building Inspector, and if so why was remedial work needed?
If the slab that the building had been erected upon was not approved then this would explain :
1) why the flats apparently have not sold (there was interest in 6 or 7 of the properties, 5 of which are cash buyers, according to the update of 7/12/17),
2) why the borrower has tried to get Structural Defects Insurance, and why we have not yet received any indication that he has been able to do so,
3) why the borrower may have found it necessary to try to refinance the loan while continuing with attempts to sell the flats as reported in the update of 1/3/18 (and others subsequent to it),
4) why the borrower advised that the new funder’s solicitors had some additional requirements, which had to be documented (as reported in update of 27/4/18), and why general progress with securing refinancing seems to be slow,
5) why it seems not to be easy to find evidence that the flats are actually being marketed,
6) why Lendy has tolerated this defaulted loan (now -200 days)
Purely speculation as Lendy will of course have checked that the Local Authority Building Inspector did indeed approve the concrete slab as part of their due dilligence, and hence have no doubt that full repayment will be achieved in due course (as reported in the update of 25/5/18).
So if the concrete slab is not the problem then what else could it be?
|
|
|
|
Post by nyquest on Jul 28, 2018 15:58:04 GMT
I think you are correct. So what next?
|
|
richox
Member of DD Central
Posts: 66
Likes: 120
|
Post by richox on Aug 5, 2018 21:58:11 GMT
I think you are correct. So what next? Read the updates.
|
|
