Management Of Commercial Repossessions

C O R P O R A T E

S A L E S

M A N A G E M E N T C O M M E R C I A L

O F R E P O S S E S S I O N S

Introduction to Spicerhaart Corporate Sales Spicerhaart Corporate Sales offers asset management and repossession services to Corporate Clients. Our highly experienced team based in Blackpool works closely with banks, building societies and other lending institutions that manage property on both a residential and commercial basis.

We manage properties from housing associations and also property developers.

We offer a total management service for repossessions, partexchanges, relocation schemes and a range of other property sales. Our specialist team is dedicated to providing the very best service and delivering consistent quality. Our goal is to always achieve the maximum sale price for the property in the shortest possible time, achieved through continual investment in people and technology. In our opinion the key to success in corporate business is the ability to react to change in a flexible and speedy manner.

With over 150 years combined management experience we are able to ensure that your business is in safe hands.

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introduction to spicerhaart commercial asset management Spicerhaart have a dedicated team handling commercial repossessions from the point of enforcement and receiving the eviction date, through to the point of completion and redemption of the appropriate account. Spicerhaart Commercial will also deal with both abandoned properties and where the borrower wishes to give possession voluntarily.

Spicerhaart Commercial have a robust process in place for the handling of the property, from the point of possession through to ensuring that the property is marketed and sold for the best price possible in the shortest time frame. In instances when a client would prefer the property to be let rather than sold, Spicerhaart Commercial can ensure that the local agent instructed to let and manage the property is doing everything possible to let the property for the best price. We also pro-actively manage the property, including developing an appropriate exit strategy to eventually sell the property for a price that is satisfactory to our clients.

Spicerhaart Commercial are aware of the constraints that all lenders currently work under and as such, Loss Mitigation is key throughout the possessions process. The pro-active approach taken throughout the time the property is in possession ensures any losses that need to be taken are

kept to a minimum and also ensures all avenues to minimize losses are reviewed prior to putting offers forward – for example, is rental an option?

taking instructions to act Spicerhaart Commercial’s processes ensure everything is in place for the day of eviction. Our client’s solicitor will send through confirmation of the eviction and the specific date and time that this is scheduled for. This will be sent through to Spicerhaart Commercial in an agreed format: the information provided by the client is at their discretion, but some of the key information that we look for in order to offer the right service from day one is listed here: County Court Issuing Date and Time of Eviction Lending Company Borrower’s Details Property Address Client Reference Number Outstanding Balance Original Valuation Amount Copy of the warrant Copy of the title plan Copy of original valuation Copy of any recent valuations or any pre-eviction valuations or the like

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choosing the right agent

taking possession

This is a crucial part of the process and is integral to delivering the results that Spicerhaart Commercial expect and require from each of the agents instructed. There are a number of factors that are taken into consideration when choosing agents and the information provided with an initial instruction helps us to choose the best agent for the property. The property details and the possible projected loss on the case dictates, in some instances, what route the property should take. Some of the other deciding factors are as below.

Spicerhaart Commercial handle all aspects of the possession of the property, from changing the locks to carrying out the specific requirements of the client, ensuring that the client’s reputation is protected at all times.

Is there a projected loss on the subject property?

Is rental an option on the property to mitigate any potential loss?

What is the property type?

Would the property require a specialist agent, e.g. equestrian property, public house, farm buildings and land, large industrial units or large hotels?

Is a local agent or a national agent most suitable to market the property?

All of these factors and others on a case-by-case basis are considered in the decision making process of choosing the most suitable agent to be instructed on the property. The agent is instructed at this point and informed of the property details, the date and time of the eviction and they will then schedule for a member of their staff to attend the eviction.

The following information details the main areas that our Commercial Repossession Specification covers but is flexible enough to be adapted to meet each individual client’s requirements.

Robust SLA’s in place to ensure all aspects of the work undertaken by the contractors is able to be controlled by Spicerhaart Commercial Detailed process to be followed by the contractors both prior to and post possession Detailed standards in regards to the quality of locks to be used and also how and when certain locks should be used. The quality of locks used can be altered to meet each individual client’s requirements, the minimum standards we have are minimum 3 lever locks, minimum of IFAM 60mm Laminate Padlocks, 200mm Heavy Duty HSP (8”) and also if a security chain is required Ensuring the property is fully secure including boarding and using security grilling where required and also authorised by the client Draining down all water systems at the property to ensure there is no water at all left in the system

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Removing all perishable items from the property at possession such as food, rubbish waste etc Ensure all the mains services are off including, but not limited to, gas, electricity, water and oil Meter readings taken at the point of possession and noted on the contractor’s pack Hazardous waste and chemicals in the property managed in line with the specific SLA in place for this to ensure no risk to anybody and that all waste is disposed of in line with the appropriate legal requirements Pools, ponds and open water containers dealt with and secured in an effective manner to reduce any risk of injury to anyone who may go onto the site Detailed photographs of the property both internally and externally Detailed report sent through to the client within 5 working days of the property being taken into possession

Post possession we have the ability to carry out all property maintenance work and also repairs to the property utilising our contractor panel. There is a detailed SLA in place to ensure that quotes are sought in a timely manner and where approved work is completed in a timely manner to a high standard Spicerhaart have robust processes in place to ensure that the contractors on the commercial panel meet and exceed the standards we require. We utilise property audits to check the work undertaken by the contractor, and also carry out frequent onsite formal audits of the contractors on both an announced and unannounced basis. We believe we work with the market leading contractors in providing this service.

The experienced Spicerhaart Commercial Team ensure that any potential risks to our clients in taking possession are mitigated prior to them potentially occurring.

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managing the property From the day of possession, Spicerhaart Commercial have processes and procedures in place that can be adapted to dovetail into each client’s own disposal strategy in order to deliver the required results. With commercial properties the focus, and the process that is followed, can vary depending upon the property type so Spicerhaart Commercial have the ability to be flexible in the approach it takes to the management of the property.

Our 2 Common Routes for Commercial Property Sale of the Property

This is the primary route and involves the management of the property in possession with the intention of selling the property for the best price possible in the shortest timeframe. Spicerhaart will get the property into possession and arrange for a market appraisal and independent valuation, using a client’s panel surveyors if required. From these, we will recommend an asking price and also comment on the property itself.

Spicerhaart Commercial will use a pre-agreed form to submit the valuations to the client, along with a summary of the property in terms of its condition and any work required to maximize the marketability of the property. Once this is submitted we will await confirmation of the asking price the client would like the property to be initially marketed at.

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The property will be placed on the market and the possessions consultants allocated to the client will speak at least weekly to the marketing agent to try and drive the property to the point of agreeing a sale. The possessions consultant will cover with the agent items such as the property being advertised in accordance with the SLA, interest in the property, are there any parties looking to put an offer forward, are there any works required to the property and also what do we need to do to increase the marketability of the property.

Whilst the property is in possession, Spicerhaart Commercial will send a monthly report detailing each individual property in possession for that respective client. This report will give a detailed and thorough summary of the subject property, along with the interest that has been generated on the property to date and also a full breakdown of the activity within that calendar month.

Spicerhaart Commercial will be pro-active throughout the time the property is in possession and will recommend price reductions where appropriate. All price reductions are raised with the sole intention of finding the right level for each property and maximizing the price achieved.

Scope for the value of the property to increase in the future based on the current market factors Condition of the property. In some instances such as hotels and public houses the property will be taken into possession in a “ready to trade� condition. In cases such as this we can look to maximize the potential future returns by renting the property and then sell at a future point. This is a good Loss Mitigation tool for loss accounts Is there demand in the local area and also general economic factors in the local community Cost of making the property good to rent Potential rental income against the interest on the account on a monthly basis If rental is an option, we will agree with the client on an individual basis the merits of rental vs. sale and make an informed decision accordingly.

Full Management of the Property

Rental of the Property

As the asset manager assigned to the property we will ensure that all risks associated with the property being in possession are mitigated throughout, from possession through to completion. Spicerhaart Commercial will ensure that any repairs or maintenance of the property are carried out in a timely manner and costs are kept to a minimum.

Potential loss that the client would take selling for the present valuations

The SLA that we follow is adapted to suit each individual client’s requirements. The flexibility of case management provided by having a dedicated client team ensures we exceed the expectations of our clients.

Some properties may be more suitable for rental for a number of reasons, including:

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treating customers fairly Spicerhaart Corporate Sales are fully aware and understand the requirements of each of our clients in terms of the FSA’s guidelines of Treating Customers Fairly. Spicerhaart invariably deal with our client’s customers directly but there is a detailed procedure in place that documents our obligations on behalf of our respective clients.

All staff at Spicerhaart receive TCF training and testing to make them fully aware of the obligations placed upon ourselves as asset managers, and ensuring they are able to demonstrate TCF in all that they do.

detailed review of properties One of the tools that Spicerhaart Commercial utilise to enhance our asset management service is a detailed review of some of the properties in possession and the agents who are instructed to market the properties. This review is made with the sole intention of assessing the properties in terms of condition, work undertaken on repossession up to the required standard, security of the property and general factors that could enhance saleability.

Specific questions asked of the agent to ascertain if they are the right agent to manage the property for both us and our client. These reports are generated along with photographs of the subject property and sent through to the client to review and comment on accordingly.

These visits will be conducted in accordance with the specific requirements of each client and can be tailored on an individual basis. Data is generated from these visits on each individual agent, regarding their adherence to our specific requirements. This data is then used to assess further who is the best agent to meet the requirements which we have.

management of client account Spicerhaart Commercial offers a bespoke service, which is tailored to each individual client’s requirements. A dedicated team will be put in place to handle a client’s cases and this will be assessed based upon business volumes. A summary of the key components of the make up of the commercial team is as follows:

Client Account Manager

This person will be responsible for the relationship and ensure that the relationship is managed in accordance with the demands of the client concerned. The account manager will be the point of contact for any issues that the client may have and also work with the operations manager to ensure that any issues identified are addressed accordingly.

The client account manager will meet with the client to discuss current cases, including working to resolve any problematic cases. The account manager will ensure that all

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cases are managed to the maximum potential and ultimately offer a market-leading service to each client.

The account manager will get to know exactly what the specific requirements of the client are and will look at how the relationship can be continually evolved to the mutual gain of all concerned.

Operations Manager

The operations manager manages the team at Spicerhaart on a day-to-day basis, ensuring that the team exceeds the performance expectations which are set of them.

The operations manager looks at ways that the team can work smarter and looks to streamline the processes and procedures in place to ensure that management of the cases is optimized.

The operations manager has overall control of the staff on the relevant accounts under their remit and they are measured on the performance of both the individuals within their respective teams and also the overall performance of each of the accounts concerned.

Team Leader

The team leader manages individuals in the team on a day-to-day basis and ensures they adhere to the Key Performance Indicators set of them. The team leader manages the possessions consultants’ workload to ensure that standards required are met.

The team leader will deal with any complex cases and also get involved in any disputes that arise on cases.

Possessions Consultant

The possessions consultant will deal with a set number of cases for an individual client and will ensure that the cases are worked to the standards that are expected in line with the SLA in place. The possessions consultant will work with the sole intention of exceeding the requirements the client has of Spicerhaart Commercial.

All case handlers are very experienced in handling possessions cases, helping to ensure any risks associated with the handling of the property in possession are minimized.

property reports pre-eviction Spicerhaart Corporate Sales also offers pre-possession detailed field reports on delinquent properties which our clients have on their books. These reports are in-depth and capture information on the property, its current condition, the situation with the property in terms of who is occupying, is it trading and also a valuation of the property. We will also, with our client’s permission, attempt contact with the borrower to establish the reason for the delinquency and attempt to get as much information as possible to assist the client in assessing what to do with the property.

The report will also include a detailed recommended exit strategy, based upon the information gathered on the initial

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visit. The report will contain photographs of the subject property and also the surrounding areas, enabling the client to fully understand the property they are dealing with in preparation of deciding whether to take possession or not.

These visits are all carried out with Treating Customers Fairly in mind and we feel that providing these reports to our commercial is further evidence of how Spicerhaart Corporate Sales is committed to protecting its clients’ brands and reputations. These reports are also excellent tools for our clients to use to evidence that they have looked at every opportunity in terms of the delinquent account and that possession was always only the last resort.

summary Spicerhaart Commercial prides itself on being able to deliver client-orientated results whilst working to each individual client’s own SLA. The pro-active approach to asset management

has loss mitigation integrated throughout the process, whilst trying to achieve the key drivers of selling properties for the best price in the quickest timeframe possible.

As the commercial market has moved, so too has the approach that Spicerhaart adopt in terms of managing the commercial repossessions. We pride ourselves on our ability to adapt to lenders’ requirements while also remaining competitive and delivering the results that each of our clients require.

If you are interested in discussing what Spicerhaart can offer your company, please contact: David Miller Client Account Manager Mobile - 07951 924088 Direct Dial – 01253 607186 Email – david.miller@spicerhaart.co.uk

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For more information about spicerhaart corporate sales please visit our website or contact us.

Spicerhaart Corporate Sales Skyways Amy Johnson Way Blackpool FY4 2RP T: 01253 603000 F: 01253 603031 E: corporatesales@spicerhaart.co.uk W: www.spicerhaart.co.uk/corporatesales