Reviewing over-secured facilities

Registered Providers often find that older facilities can be very heavily over-secured. This is the natural result of an amortising loan, together with the value of the properties charged increasing over the same period.

In these circumstances, you should strongly consider re-utilising what may well be a very considerable number of units from the existing facilities and applying them elsewhere to secure new funding.

How we can help

By recommending which properties are best to release from the existing facilities, by advising on the likely valuation that will be achieved in today’s lending climate. It is important to bear in mind that some properties which were charged at an MV-STT value many years ago may now only achieve an EUV-SH value or even be unacceptable as security due to current lender requirements and we can determine where this is likely to be the case. In this way, you can maximise the charging potential of your asset base and ensure that you release the correct properties from the existing facilities.

By preparing the relevant properties in the usual way once you have identified the properties to be re-utilised and have obtained the lender’s consent to this.