Some homeowners may not have a choice because if they don’t sell their property as there is a possibility that they will end up losing it to the Bailiffs take possession of the property evicting any occupants of the property and the bank will sell it and they’ll even sell it for a very low price if need be.
It is always better to try to sell the property yourself to ensure you are in control of the sale process and price even if you think you’re not getting the best price, as leaving it to the banks to actually sell it for you may be unfavorable because the likelihood is they’ll probably end up selling your property for the redemption amount because they have no interest in terms of how much equity you will raise from the sale of your property. They just want to get their debt back that they lent you quickly as possible. So, they’re just going to sell the property for a fire sale.
Due to our extensive list of potential buyers, we can look to assisting you in the sale for your property in an attempt to maximize the equity you will be able to get out of your property and avoid any repossessions which may lead to you no longer having control of your property. We are able to look into complex cases in which you may not find solutions for in the open market and that is where we flourish. We provide unique solutions subject to your requirements and we will always look to ensuring that the solution we are to provide, our clients are satisfied to progress with that solution prior to any works being carried out.
The next area is called the Law Property Act 1925, which is that if you own a commercial property on a bridge or a BTL mortgage or a business loan from a large bank investment bank. Only commercial assets are subject to the appointment of LPA receivers/Fixed-charge receivers who of course under the Law of Property Act 1925, where they can take your property and they have the power of sale or power to collect rent.
How do you take advantage of the Law of Property Act 1925?
The way it would work is not similar from the situation with the regulated loan. We are specialists in dis-instructing LPA receivers, so we would talk to the receivers once we have received a signed letter of authority from our client and work out whether the receivers have actually followed the right protocols.
If the LPA receivers haven’t followed the right protocols, what happens next?
We would do is we would then is that we would look to ensure that they gave you enough time to sell your property or finance it. Typical solutions are as follows:
- Litigation – This is usually our first course of action as we will always first look to see if the LPA receivers have been appointed correctly and if so, work out whether the LPA receivers may be abusing their rights.
- Finance – The typical finance option is that we’ve got access to a large panel of lenders, mainly bridging companies who can charge up to about 75% or 80% loan to value. If finance can be arranged and is achievable, that usually solves the client’s problem for them to take the bank out which is known as refinancing or re-bridging. And then if they got it on a bridge, they can always sell the property all the properties in their control. And then Thirdly, if we have a situation where the properties are, let’s say, in receivership hands, but there isn’t enough equity in the property to finance them legally, there’s any way you can come out come out the problem because you’ve got an issue.
- Sale – We have cash buyers on the table who would potentially look to do a JV or is just potentially a friendly buyer that is happy to buy the property to save the day for you. They’re not easy to orchestrate. Mind you, the finance option and legal options usually tend to be less problematic. But dealing with the buyer, we have got a lot of buyers that we’ve been dealing with, so we need buyers that are reliable that understand the process and understand the risks around all of this as well. So it is because the type, the timelines are so tight, it’s not in the easy process for but it is not experience in the property market. They can easily misconstrue things. They don’t really understand what’s going on, because this is an area where anybody who’s got a lot of money that doesn’t have experience and property might feel a bit fragile.