Restructuring and Recovery Services
The Restructuring and Recovery team understand that during these times of rapid change, bespoke and considerate advice may be required and implemented for a diverse range of situations.
Our multi-disciplinary, national team has a broad spectrum of knowledge and experience across all real estate sectors and can draw on the wider expertise of Knight Frank and our regional experts to ensure that you have the answer you need to help establish informed strategies as situations develop. This can be in the form of a formal appointment or even just a brief conversation to help rationalise the facts and produce a solution.
Mitigating loss and maximising value
Turbulent economic cycles and political realities are continuing to highlight the importance of optimising value through cost effective and proactive workout strategies. Real estate is often the most valuable asset on any balance sheet and fully realising the potential of the underlying asset is critical to maximising the monies received.
Our team consists of highly skilled and experienced property consultants who deliver innovative and strategic solutions to the complex challenges and opportunities that insolvency and recovery can present. We will lead the instruction from day one, remaining hands-on throughout, to maximise recovery and implement successful strategies.
Our advisors have an unrivalled depth of experience in resolving complex loan communications and have an excellent track record in minimising losses, mitigating risks and maximising the value of real estate assets for our clients. It is best for us to be involved from the beginning, but we can also manage and advise on stalled development programmes. We conduct independent reviews of borrower business plans as well as bespoke property reviews.
LPAR/FCR
Law of Property Receivers (LPAR) or a Fixed Charge Receiver (FCR) is a person that is appointed under a mortgage or charge over real property by a lender in order to recover debt secured against the property. It is a personal appointment and generally two individuals are appointed who will be jointly and severally able to exercise their powers.
When an LPAR is appointed, they will create a buffer between the lender and the borrower. They take control of the asset, collect any income derived and ultimately dispose of the asset and, where responsible, subsume the liabilities.
Although often thought as the last resort for lenders, the appointment of an LPAR is a cost-efficient remedy for a lender to take control and recover loans secured against property. In general, the appointment process quick and does not require an application to court, thus enabling the property and the value of the security to be quickly captured and realised.
Appointing an LPAR will limit the liabilities of the lender in recovering the debt itself and will insulate the lender from any negative publicity when enforcing their security. The remedy for the lender is unique to English and Welsh law. It is a quick, economical and efficient remedy for a lender to initiate and realise their security.
The LPARs at Knight Frank are all Registered Property Receivers, NARA accredited and MRICS affiliated.