Saving Stream Experiences Second Default

Updated 1st March 2017

Saving Stream sent an email to investors informing those who had invested capital in loan PBL020, a defaulted loan from 2016, that all capital had been returned, as well as accrued interest.

Below is a quote from Saving Stream, and further below, a timeline of the default published 3rd November 2016.

We would like to announce that yesterday we fully repaid one of our long term defaulted loans (PBL020) for £1.7m plus c£147k of interest that had accrued during the default period.

An updated version of this article can be found here: 'Saving Stream Default 2016: Updated'

One week ago Saving Stream published in their ‘Recent Updates’ section (where Saving Stream account holders receive daily news and updates on all active loans) that they had put the loan ‘PBL020’ into default.

This is the 2nd official default experienced by Saving Stream; the first one was recovered without loss within three months and sold for the original valuation.

Saving Stream’s Liam Brooke (CEO):

Word from the administrators and agents as of this morning, there are 12 potential seriously interested industry buyers and we are also speaking to Strutt and Parker with re selling the site as a residential opportunity as well. Should have an acceptable offer on the table within a week or 2.

Saving Stream update:


We have put this loan into default and have instructed administrators to recover the loan. Clarke Willmott have been instructed to act on our behalf. Opus LLP have been instructed to act as Administrators. There is interest from a number of potential buyers. The reason for the default is the sale fell through and the borrower does not have the funds to repay on time.

Details of Loan

All legal documents pertaining to the loan are contained on Saving Stream’s website. A quick assessment of the documents shows the steps taken in ensuring the valuation and diligence over the assets and the borrower were sufficient.

In saying that, 1058 investors had invested £1,599,892 of the target loan amount of £1,701,000 when the loan went into default.

Lendy Finance documentation

Purpose of loan

‘Purchase of property and business assets.’

Exit strategy

‘Refinance with commercial mortgage provider such as Lancashire Mortgages etc and a Buy to Let mortgage on the residential parts.’

Asset Valuation

Alexander Mackie Associates Ltd and Henry Adams LLP (Chartered Surveyor) were appointed to value the property and surrounding assets.

Alexander Mackie Associates valued all assets inclusive at: £2,430,000.00

Details of Debt Recovery

Saving Stream only ever lend at 70% the value of the asset securing the loan. In this instance the loan value was £1,701,000.00 on an asset worth £2,430,000.00. This equals 70% Loan to Value (LTV).

The 1058 investors will be keen to understand what Saving Stream is doing to recover the debt.

Security measures

Saving Stream’s first step in recovering defaulted loans is to seize and sell the asset securing the loan.

Saving Stream also operate a provision fund which is maintained at a constant and sufficient percentage of the loanbook (2%) according to the property lending platform.

Live loanbook:             £105,528,063

Provision fund:            £2,110,561

This is 2% coverage of the live loanbook.

Saving Stream PBL020 update:

Legal position:

The loan from lender to Lendy Ltd remains in place until the borrower repays the loan and your funds cannot be removed during that period (unless sold via the secondary market). You are unable to demand that Lendy repays you (or, sue Lendy for this repayment) as the repayment does not fall due until Lendy is repaid by the borrower (Clauses 4.5 & 4.6 of the \’old\’ terms that were agreed).
As the borrower has not repaid the loan, Lendy is, on your behalf and at Lendy's option, enforcing the default procedures set out in the loan agreement with the borrower (clause 5.2). Once the assets have been realised Lendy will repay your investment. In the event that there is a shortfall then Lendy will pay you a proportion of the recovery proportionate to the amount invested by you in the loan (clause 5.3.1). There is no guarantee as to the time it will take for the proceeds to be realised for reimbursement to you (clause 5.4). The administrators will make the decisions on whether the business can be sold as a going concern or whether it is better for the creditors of the borrower as a whole to liquidate the assets. We apologise for the time it is taking for repayment of the debt but you will appreciate that this is outside of our control; we will of course keep you updated regularly on the website with the progress of the administration and any anticipated recovery.
We will of course keep you updated regularly on the website with the progress of the administration and any anticipated recovery and we thank you for your patience. We are keen to protect our reputation with our investors and we have set up a discretionary provision fund which enables the directors to allocate funds to make contributions towards repayment shortfalls. Whilst it is entirely within the discretion of the directors of the provision fund to make a cash withdrawal from the provision fund, we would be keen to protect our goodwill to ensure that any shortfalls in repayments to investors are mitigated.