A note from CG&Co – Property Receivers

2023 was a busy year for all of us in the industry and we predict 2024 to be just as, if not even more, busy. As a result, we wanted to remind lenders of our approach to Property Receivership. The goals of our Property Receivership team are clear. From the moment of appointment, we aim to recover an existing debt by maximising the value of a property while simultaneously managing any risk throughout the process.

CG&Co’s appointment creates a highly effective buffer between the lender and the borrower throughout the Receivership process. We’ll take over the entire management of the property or land, collect any rent or other income that’s due, and then work to dispose of it to ensure the lender gets repaid.

The lender is no longer required to deal with the borrower following our appointment, saving valuable management time. This means that any grievances felt by the borrower are directed entirely at us – not the lender – and we bear all the risk. In theory, the lender relinquishes control over our subsequent actions.

Because CG&Co consistently seek to engage with the borrower at the earliest opportunity, it has been known for them to recommence payments to reduce arrears soon after our appointment.

At any point during the above process, it remains possible to put CG&Co’s appointment on hold if circumstances change. The lender will have the comfort that they have a validly appointed Receiver overseeing matters who can be re-arranged at any time.

Step-by-step guide to Property Receivership

When a default loan arises, lenders should pass the case to their solicitors for immediate review and issue a letter of demand.

At this point, a conference call between the lender and CG&Co’s Property Receivership team can take place to discuss the potential appointment, the property and potential strategies.

CG&Co can then be formally appointed by the lender to take control of the property. This does not require any formal insolvency petition, court proceedings or advertising. But our appointment is validated by the lender’s panel of solicitors

We’ll immediately manage and secure all aspects of the property or land, ensure compliance with appropriate legislation and insure it on an all-risk basis.

We will register our appointment where necessary and notify all connected parties and contact the borrower to arrange a meeting

Our initial report with recommendations will be provided to the lender, accompanied by up to date valuation advice

Once the occupation status is established, a disposal strategy will be agreed between CG&Co and the lender

Private treaty and auction appraisals will be obtained from local or national agents, subject to the nature of the property.

Once the property sale completes, funds are distributed in rank of priority- with the lender at the top of the list.