Category: Property Receivership Case Studies

The owner of a large portfolio of residential investment properties based across the Midlands had failed to make repayments.

CG&Co’s Appointment

On day one, we visited all the properties and served all tenants with the notice of appointment to ensure we subsequently secured the rental income.

We also made contact with the first charge holders to establish payment terms to arrange continued payment of their mortgages.

In addition, we assessed any urgent repairs and ensured all properties were compliant with all requisite legislation.

The Outcome

As soon as the tenancy position had been confirmed and rent collections had been commenced, an appraisal of the portfolio was made and a national agent was instructed to market the portfolio as a whole.

In addition, we also requested the agent to provide the option to parcel up specific sections – to ensure that the less desirable properties were not the only ones that didn’t sell.

Interest levels were exceptionally high – and we successfully agreed sales with the portfolio being split into two parts.

Once the second sale was completed, it was possible to repay all lenders in full.

The owner of the property was seeking to refinance but hadn’t been able to do so within the requisite timescale.

CG&Co’s Appointment

We immediately commenced possession proceedings and agreed a consent order allowing the borrower three months to complete or, alternatively, vacant possession was to be delivered.

Once that period had elapsed and vacant possession had not been provided, we scheduled enforcement which prompted the borrower to hand over the keys to avoid the necessity of bailiffs attending.

The Outcome

As soon as we were in possession, we obtained appraisals, agreed a private treaty sale and instructed the selling agents.

The sale was subsequently concluded three months later with the lender recovering their entire loan.

Secured against a buy-to-let mortgage, this property had been converted into two self-contained flats which had subsequently fallen into disrepair.

CG&Co’s Appointment

We immediately obtained proof of the existing tenancy agreements that were in place for each flat and ensured that the rent was collected.

We also identified that the owner had failed to maintain each property and ring-fenced those repairs that were required immediately.

As a result of this due diligence, we also realised that gas safety certificates were urgently needed for both property.

The Outcome

The cost for this repair and maintenance programme – which was carried out swiftly using an existing network of contacts – was covered entirely by the rental payments.

After obtaining appraisals from several leading local agents, we agreed to sell the property subject to existing tenancies, as the cost of obtaining vacant possession was not financially viable.

Due to its excellent location, the property was subsequently listed with a local estate agent – and successfully sold for close to its asking price just four months after CG&Co had initially been appointed.

The borrower had been unable to meet interest payments on a loan secured against an apartment, which was a buy-to-let investment, based in a city centre.

The existing tenant had paid 12 months’ rent in advance.

CG&Co’s Appointment

After being appointed by the lender, we immediately obtained private treaty and auction appraisals.

We subsequently agreed the disposal strategy with the second charge holder.

After this, a local agent was instructed to sell subject to the existing tenancy.

The Outcome

The sale was subsequently agreed at full asking price – with apportioned reduction on completion equivalent to lost rent to the purchaser up to the end of the tenancy.

The lender subsequently received full repayment with the surplus returned to the borrower.

Based in a popular North London borough, this property consisted on three commercial units on the ground floor with numerous residential flats above.

Two of the commercial units were let on full repairing and insuring (FRI) leases with the flats above 100% occupied on assured shorthold tenancies (ASTs).

CG&Co’s Appointment

Straight away, we secured the rental income and made enquiries with the previously instructed agent to establish interest in the vacant commercial unit.

A joint agent was instructed to appraise the property and shortly after terms were agreed for a lease of the vacant unit, bringing the property to full occupancy.

The Outcome

Once the appraisals were received, a disposal strategy was agreed the joint agents were instructed to sell by private treaty.

Given the location, occupancy level and passing rent, interest levels were high with various offers received, leading to a deadline set for best and final bids.

A sale was agreed in excess of expectations, with completion resulting in a sizeable surplus being returned to the borrower after the lender had been repaid in full.