Receivership Level 3- Aylesbury Flashcards
Talk me through your inspection and what you had regard to?
prior to inspection i carried out due dilligence on the property
upon inspection I had regard to the local area, access routes.
Externally the propety was solid brick construction under a pitched roof being used as a motor trade
Internally the property was in poor condition, it was in need of refurbishment
minor damp issues
I had regard to
site area
access
door loading
eaves hight
What is the minimum requirements for Grade A industrial accommodation?
30 kn floor loading
8m eaves height
Did you take any extra paperwork with you in regard to the receivership?
I took the deed of appointment.
What do you do once you are appointed as a receiver?
accept the appointment - if borrower is in UK corporation needs to be accepted within 24 hours and have to file RM01 notice. To lender and solicitors so they can produce a validity report.
insure the property on block policy
stakeholders notified, borrowers, occupiers
management.
if commercial write to HMRC regarding VAT.
What red flags would you look for in the validity report?
if I was being appointed under a second charge
any unilateral notices
look for power to sell the property
If you didn’t have power of sale what would you mean?
would need to obtain consent from the lender before selling.
What is a unilateral notice?
clause on the title, could impact receivers as may need consent for a third party to sell.
You established the unit was occupied, what does the tenant do with the rent?
rent is to be paid by the managing agents.
What rent was the tenant paying?
£14,000 per annum
What is the difference between a lease and a licence?
licence acquires no interest in the property and is a personal right which can be terminated by each party.
a lease provides the occupier with a legal interest and cannot be terminated until break clause or expiry.
Why was the unit in poor condition?
It was in general disrepair.
what advice did you provide to your client?
I advised that auction would be the most appropriate disposal method as it was most likely to appeal to investors as the unit was occupied and in poor condition.
I presented to the client two options regarding the tenancy
to formalise the existing occupation or to sell the freehold subject to an unknown occupation.
I advised that my formalising the tenancy by way of licence it makes the property more saleable than occupied on terms unknown as it gives the prospective purchaser more prescribed rights should they wish to gain occupation.
What was the tenant using for?
auto repairs
What else did you have regard to when considering your sale method?
I considered that the debt could be recovered in full through selling as is and therefore there was no reason to delay the sale.
What was the local area like?
established industrial location occupiers nearby included Mercedes Benz, McDonalds and Topps Tiles
