Preparation for the Sale of Flats, North East London​

The properties were converted without planning or freeholder consent and were held under a single lease. ​

They 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. ​

This included: ​

• Agreeing a premium with the freeholder to formalise consent for the conversion of one flat into 3 units.​
• Obtaining certificates 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 flats where leases had less than 60 years remaining with a view to sell 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.