SW was appointed by the secured lender in relation to a stalled development of 24 apartments in two attached blocks on the fringe of the town centre. A serious arson attack had stopped the development and delays in processing an insurance claim meant that the lender’s customer was unable to comply with the terms of its loan.
SW took control of the property as LPA Receivers and assessed the end value of the scheme when completed, the costs to complete and the state of compliance with statutory requirements, eg town planning and building regulations etc. The insurance claim was costed then finalised and a cash settlement (rather than physical reinstatement) was negotiated with the insurer.
An exit for the secured lender was achieved by a sale of the incomplete property in its existing state to another residential developer with the benefit of the insurance claim retained for the vendor.