Residential buy-to-let portfolio of 82 properties
Portfolio Overview
- Residential portfolio of more than 80 properties across the North East, worth over £5 million
- Appointed to manage the portfolio by Fixed Charge Receivers (FCR) following breaches of loan conditions by the existing owner
- High vacancy rates and numerous occupiers with high levels of arrears
- Significant proportion of properties in need of repairs and refurbishment work to meet compliance and health and safety regulations
Project Summary
Our Landwood Group team meticulously managed every aspect of the portfolio of more than 80 properties, from tenant relations and rent-collection to arrears-management and deposit-protection. Conducting thorough inspections and RICs valuations, we identified necessary repairs and managed contractors for urgent work. By optimising rents and executing targeted marketing strategies, we sold the portfolio 10% above the guide price over a period of 6 months through a mix of online auctions, private treaty and portfolio sales.
The Challenge
The portfolio faced several challenges, including a large percentage of properties in need of repairs and urgent remediation for multiple health and safety and compliance breaches. Further issues lay in a select number of the properties housing illegal cannabis growing, leading to extensive disrepair and concerns about break-ins.
Vacancy rates were also high and a significant portion of tenants relied on housing or welfare support from the local authority. As a result there were numerous occupants with high levels of arrears, some of whom were considered vulnerable.
Landwood Group’s Strategy
Given the complexity in this portfolio, care and precision was needed to transform it into a thriving asset.
Our Landwood team initially formulated a comprehensive strategy, providing advice on portfolio management for the fixed charge receivers, including decisions for both retention and disposal.
This involved conducting thorough portfolio and individual property valuations, coupled with detailed cash flow analysis. This informed our strategic recommendations and plans to tackle licensing and compliance concerns, resulting in optimising the value of the portfolio.
Our expert team also protected and improved the asset value through essential remedial work and optimising rents for under-rented properties.
When the portfolio was ready for market, our team prepared a full marketing strategy including route to market, timing and costs, which secured a sale within six months and 10% over the guide price.
The Results
Improved value of portfolio by an estimated 10%
Sold 10% Over Guide Price
Landwood Insight
Holly Surplice, Landwood Group Director, said: “With a well-deserved reputation for extracting value from complex portfolios, we are often approached with challenging projects such as this.
“As a specialist firm we are able to use a hands-on approach and build a personalised strategy for each project. This was particularly important for this portfolio, given its range of challenges and the involvement of multiple tenants.
“We strategically crafted decisions aimed at enhancing returns and revitalising this struggling portfolio to align with the client’s requirements for both retention and disposal.”
If you would like to speak to Holly on a similar property or find out how we could help you. Contact us today on:
Holly.surplice@landwoodgroup.com
0161 710 2010
