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The team was appointed to provide LPA Receivership advice to develop a strategy to help improve the recovery outcomes on the building, after the owner went into administration and defaulted on their loan agreement.

The partially completed multi-phased residential development was in London. Phase 1 of the development was 75% complete; planning consent had yet to be granted for Phases 2 and 3.

Development costs had overrun and the developer was in breach of the planning consent for Phase 1. As a result the lender appointed the LPA Receivership team at Vail Williams.

Challenges

Following an assessment, the LPA team at Vail Williams recommended against selling the property immediately in its existing uncompleted state, as it would lead to a very limited recovery of outstanding loans.

In light of the favourable residential market in the area, the LPA Receiver developed and agreed a strategy with the lender which would build out the scheme rather than affect an immediate disposal.

This led to the receivers coordinating the remainder of the multi-phased development over a 2 year period.

The LPA Receiver and their consultants from Vail Williams and other external advisers, carried out complex negotiations with the listed building officer, dealing with outstanding sums owed to the existing contractor, architect, and insurer, whilst also organising both sales and lettings of the individual apartments.

Expertise

  • LPA Receivership advice

Result

As a result of the LPA Receivership advice given by Vail Williams, the lender was able to achieve net receipts which were £1.5 million higher than they would have been if the property had been sold in its existing state, immediately following the appointment of receivers.

For further information please contact our team.

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