The Lendy website states, “The Lendy platform allows our investors to pool together their funds in order to finance development projects and property purchases. We ensure this process is fast, simple and efficient, and delivers a gross annual return of up to 12%, before tax, with all proposals fully assessed by our experienced credit committee before being made available for investment.
Lending is always secured with a legal charge and our loan amounts do not exceed 70 per cent of the Open Market Value, as confirmed by an independent Chartered Surveyor. This means that in the event of a loan becoming non-performing there should be sufficient equity to allow loan funds to be recouped during a sale.”
One has to wonder how they went bust with £160M of outstanding loans of which, more than £90m was in default. The group is obviously dogged by questions about the quality of its borrowers and its management – whatever the detail, we do hope none of our members were investors and remind everyone that, if it sounds too good to be true….