4 separate properties comprising 9 flats and a garage. 3 of the flats converted without planning and freeholder consent and held under a single lease.
The properties were poorly managed by the borrower who was substantially in default.
The simplest exit was to sell all the properties straight away but, with the main lender’s agreement to hold interest, we worked with the borrower and lender to rationalise the portfolio.
- Agreeing a premium with the freeholder to formalise consent for conversion of one flat into 3 units;
- Obtaining certificate of lawful use and creating 3 new leases to allow for each flat to be sold separately - 2 to be sold by private treaty to owner-occupiers after obtaining vacant possession and undertaking works and one studio sold tenanted via auction.
Further work included agreeing lease extensions on 2 purpose-built flats where the leases had less than 60 years remaining with a view to selling both properties as AST investments.
On the fourth property, we attended to several management issues, re-let one of the flats and prepared the property for sale as an investment through Strettons’ auctions.
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