LPA Receiver Services and Property Debt Advisory
While the full impact of Covid-19 is still unknown it is inevitable that there will be an increase in distressed debt in the property sector. When a borrower gets into difficulty early intervention by an experienced professional will minimise the lender’s loss.
In these situations, often the quickest and most cost-effective route to recovering the loan is through the appointment of an LPA | Fixed-Charge Receiver who has a range of enforcement procedures at their disposal. Some appointments are inevitable, however early engagement can identify problem areas which, if addressed, turn projects around and avoid the need for a formal appointment.
We help you find the right exit strategy to secure your investment and maximise your net recovery.
Our experienced Asset Recovery advisor and LPA Receiver, Chris Price, is a member of the RICS and NARA (Non-Administrative Receivers Association) and has advised lending clients through the property recessions of the early 1990’s and 2008/9 on projects ranging from Self-build housing development, Let residential portfolios to Film studios. Appointments are taken jointly with our consultant.
Rory Dillon MRICS FNARA. Rory has 15 years’ experience advising banks and property lenders across all sectors.
• Development of 20 flats; Wells, Somerset
– on behalf of major bank
• Management & sale of nightclub; Swindon, Wiltshire
– on behalf of building materials supplier
• Management & sale of 39 bed, student complex; Bristol
– on behalf of principle contractor
• Repossession & sale by auction of HMO; Newport, Wales
– on behalf of major high street bank
• Management & sale of film studios; Bridgend, Wales
– on behalf of top 4 accountant
Our Options Report, is a summary of the options available to the lender to secure the recovery of the debt. These reports are produced prior to a formal appointment after meeting with the borrower and undertaking an inspection of the property(ies).
Pre-appointment monitoring offers a favourable solution, where the borrower agrees with a specific course of action, with the plan monitored by PACT. Where the borrower is able to meet agreed benchmarks a formal appointment may be avoided however, we are in a position to step in as LPA Receivers should the need arise.
A formal LPA appointment can be made quickly in the event the lender / borrower relationship has broken down. The LPA Receiver will manage the property in the short term with a view to sell the property to recover the debt.
The First Loss is the Best Loss – Signs that all might not be well
In this second article, Chris Price looks at the current property lending environment and considers common pitfalls and indicators that all might not be well with a property development scheme
Chris recently acted as LPA Receiver in respect of a substantial client debt incurred in the construction of student accommodation in Bristol. This was a complicated case however a full recovery was made with the Receivership being handled in a most professional manner