TitoPuente
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Post by TitoPuente on Apr 3, 2019 20:58:51 GMT
What is not helpful is your last sentence. I see that you have unfortunately fallen prey of "the London loan". I wouldn't have touched that with a radiation suit, but I am not cocky enough to give you life lessons. Apologies if you felt that comment was patronising, it wasn't inteneded to be. More a reflection that I think many retail lenders (which I'm not) have been badly let down by the FCA's approach to regulating the sector. (Again that is not to prejudge your circumstances, simply a belief in general terms. Unfortunately on this forum I was pretty much alone in suggesting a few years ago that the typical self select loan was not appropriate for retail investors.) As far as the London Loans go, I am indeed in the larger one, a consious decision based on my analysis of the security and a belief that it was worth around 100% of the loan value OMV, and c. 80%* of the loan value as a distressed sale, which with marketing targeted at a very specific demographic, I believe is still the case. Obviously I was unaware of the borrower's history on other projects, and have learnt my lesson there - avoid offshore borrowers that are too costly to research. * An estimated 80% distressed sale value vs loan is my cut off below which I don't lend. No apology necessary. Specially from someone that provides invaluable input in DD central and elsewhere. In my case, I'm not a retail investor either, but real estate fooled me. I work in Project Finance deals (ports, airports, roads, power, water) where risks are allocated efficiently and there are legal mechanisms that protect all sides. Valuations are based on DCF. All cash management is regulated by collateral trusts agreements and all disbursements are tightly controlled by administrative agents (parts of big banks). In contrast, real estate is the Wild West full of cowboys and fortune hunters. I play the real estate market through REITs with good results (here and on the other side of the pond). P2P sounded good in theory as a way to somewhat avoid the mark to market issue with REITS and gain exposure to the debt side. Trusting "agents" like Lendy that "are very good at this". Big mistake by me even if it is a minor part of own portfolio.
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TitoPuente
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Post by TitoPuente on Apr 2, 2019 21:13:44 GMT
According to the VR the 90 day vacant possession value is £8.75m. The loan is £4m + accrued interest. Lendy should be appointing receivers and marketing the property as in other loans that have a lot less valuation margin than this one. The update is irrational. The valuation is a residual value valuation back calculated from GDV. It is NOT a distressed sale valuation, and is only applicable if someone wants to build the EXACT student development that our borrower planned to, and was engaged in a bidding "war" with someone else with the same intent.
The security is "0.89 acres occupied by a 2 storey light industrial warehouse / office building scheduled for demolition" according to page 3 of the VR pdf. In other words, the site could be worth as little as 0.9 acres of brownfield land, less the cost of demolishing the building thats currently on the site if its not been demolished since the VR.
This loan, and the others like it were a gamble on the borrower actually building the student apartments. He didn't, and we have to accept the consequences of the gamble not working out.
To answer the specific point in your post, Lendy's approach is to give the borrower the time to decide whether to make an offer for the site (i.e. an offer to settle the loan) and only when that process has reached a conclusion are receivers being appointed. (Note he has made offers on a couple of the sites so it is a genuine process). Surely it is appropriate to allow the only hope of a fullish recovery to be persued before recceivers are appointed to dispose of the site as a distressed sale ?
Unfortunately for yourself and hundreds like you the appreciation that a residual value valuation is meaningless if the loan defaults is a lesson that is being learnt the hard way.
Thank you for your explanation. It makes sense and is very helpful. Looking again at the VR it is evident that the method is useless for the case and it was a mistake to rely on such thing. What is not helpful is your last sentence. I see that you have unfortunately fallen prey of "the London loan". I wouldn't have touched that with a radiation suit, but I am not cocky enough to give you life lessons.
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TitoPuente
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Post by TitoPuente on Apr 2, 2019 17:44:08 GMT
According to the VR the 90 day vacant possession value is £8.75m. The loan is £4m + accrued interest. Lendy should be appointing receivers and marketing the property as in other loans that have a lot less valuation margin than this one. The update is irrational.
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TitoPuente
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Post by TitoPuente on Apr 1, 2019 20:40:00 GMT
Looks like the valuers and solicitors could be in the dock.
In the news This is just a simple journalist's interpretation of the email all Lendy investors received. There is NOTHING new. What's the point of this thread?
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TitoPuente
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Post by TitoPuente on Mar 25, 2019 19:24:26 GMT
it seems another lender has had their funds returned via this malaika outfit. maybe lendy themselves should hire them to sort out all our scamming borrowers and get things moving. I just noticed the new one star review of Lendy from someone touting the malarky recovery scammers. I find it a bit odd that Lendy are prepared to be maligned by these fraudulent reviews and claims of recovery from them within 24 hours, when they are so touchy about honest reviews from bona fide lenders. Those fake reviews are so blatantly fake that perhaps Lendy is leaving them up just to make the point that TP is pure BS. I am with them on this one.
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TitoPuente
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Post by TitoPuente on Mar 25, 2019 8:08:29 GMT
Their email support is handled by Zendesk which, by the way, itself is a pretty compelling story (NYSE:ZEN)
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TitoPuente
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Post by TitoPuente on Mar 24, 2019 11:38:49 GMT
MoneyThing, please could you confirm that PC was effectively achieved and provide an update on the sale process? Is USL still involved as manager? If not, what the plan?
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TitoPuente
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Post by TitoPuente on Mar 24, 2019 11:30:40 GMT
MoneyThing, we are about to start the last week of the month. It would be good to have an update on the progress towards exchange and completion, if at all possible.
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TitoPuente
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Post by TitoPuente on Mar 24, 2019 11:06:52 GMT
Monetus - timing is quite similar to my own. Just checked and mine was at the beginning of January also. I got an almost immediate acknowledgement and then I got a holding letter at the start of Feb promising me a response within the 8 week deadline. But that was it. I chased also but still no response to my complaint.
I don't know what's going at LY HQ but it doesn't feel good to me. This is a basic compliance matter and is all set out in the FCA rulebook for authorised firms. LY are no longer complying.
I would have thought with the FCA already on their backs, LY must be in danger of being stripped of their accreditation and forced out of business - if they are still in it.
Perhaps the boss no longer cares. Heard anything at all GeorgeT ? Over the past 10 days I have emailed customer service, written to the ask@lendy email address and also put in a support ticket and heard absolutely nothing. Did Lendy lay off the entire customer service department or has anyone else heard from them this week? Got a personal response some time last week. They are alive and active. No assurance that there is more than a headless chicken situation going on, though.
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TitoPuente
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Post by TitoPuente on Mar 23, 2019 12:44:48 GMT
Monetus, can it be assumed that within the administration process there are still a number of loans that have been extended and are performing in some shape or form? If so, did BDO provide any indication of the Collateral UK level of company turnover in the form of interest spreads and other fees? This is important because any surviving company turnover would go to pay administration fees and expenses, and reduce the drag on investor's funds. By the way, thanks for your time and efforts.
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TitoPuente
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Post by TitoPuente on Mar 14, 2019 7:54:46 GMT
Wise move.
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TitoPuente
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Posts: 624
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Post by TitoPuente on Mar 12, 2019 8:12:51 GMT
MoneyThing, are things lined up for a Friday repayment? There has been no further update on the letter. The council met last Friday and meets again today.
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TitoPuente
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Post by TitoPuente on Mar 1, 2019 8:19:24 GMT
I commend the efforts made by MoneyThing to keep lenders updated on this loan. It sets an example. It would be desirable to have the same standard for a few of the other large loans.
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TitoPuente
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Lendy (L) in Administration
Monthly Update
Mar 1, 2019 8:01:40 GMT
mw likes this
Post by TitoPuente on Mar 1, 2019 8:01:40 GMT
Updates will be published tomorrow morning at 9.30! Can't wait! Normally it’s end of the day isn’t it? "For your information, the platform loan updates will be published at 09:30 tomorrow morning." Shown since yesterday in the top banner of the self select landing page.
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TitoPuente
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Post by TitoPuente on Feb 23, 2019 11:39:41 GMT
ablrate it's now less than 4 weeks until the maturity dates of both 80 and 98. An update on refi progress would be much appreciated.
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