LPA Receiver: Residential investment sale

Challenge

Vail Williams’ residential investment team was instructed by an LPA Receiver to dispose of a block of residential flats in Birmingham.

The mortgage interest payments had increased to unviable levels compared to the income potential of the flats, each of which were held under separate leasehold titles of 125 years. Our objective was to sell the asset and maximise recovery of the debt owed to the first charge holder.

How we helped

• The property was a purpose built modern let block of flats that would command interest from other investors.
• The Receivers put together an exit strategy to ensure maximum price could be achieved.
• The Receivers worked collaboratively with the freeholder to arrange the joint sale of all nine leasehold titles together with the freehold title.
• The Receivers instructed our residential investment agents in Birmingham to openly market the asset with an asking price of £1.2m, to demonstrate that best price was achieved.

Result

• Following a successful marketing campaign, multiple offers were received.
• In-depth negotiation took place, and a sale price was agreed.
• Contracts exchanged at the agreed price three months later.
• The asset was sold with a gross yield of 6.6%.