In this article, we will discuss how to stop commercial property repossessions from a bank if you are the owner of the property.
If you are currently facing mortgage repossession, you have to act immediately.
This article will not cover regaining possession of a commercial property from a tenant.
Table of Contents
How To Stop Commercial Property Repossession?
When it comes to halting commercial property repossession, time is of the essence. The sooner you act, the better your chances of finding a solution.
Why Commercial Property Repossessions Are On The Rise?
Commercial property repossessions have been increasing due to several factors:
• Rising interest rates
• Economic uncertainty
• Changes in consumer behaviour
• Increased operational costs
These factors can put pressure on businesses, making it harder to keep up with mortgage payments.
Commercial property repossessions are on the rise because of unaffordable interest rates. We are on the side of the business owners.
The bank can start repossessing any commercial property if they feel the loan-to-value ratio has dropped in THEIR OPINION. You could be the perfect borrower who has always paid their mortgage by direct debit for the last 20 years.
The first step they will take is to commission an “independent valuation,” which will predictably support their findings. Without your permission, they will deduct the valuation fee from your bank account, putting your mortgage account in arrears and start charging you an unauthorised overdraft fee at an astronomical interest rate.
Your commercial property will then be sold in an auction. The result depends on whether they picked a specialist auctioneer or a generic auctioneer, the pricing, and the year’s timing.
Even worse is that you could be pursued for the remaining amount. When you sign a personal guarantee, it means that your home is at risk of being repossessed.
What are the first steps to take?
If you’re facing repossession, here’s what you should do:
- Contact your lender immediately
- Review your financial situation
- Seek professional advice
- Explore alternative funding options
- Consider selling or refinancing
Can you negotiate with your lender?
Yes, you can often negotiate with your lender. They may be willing to:
• Offer a payment holiday
• Restructure your loan
• Extend the loan term
• Temporarily reduce payments
What are your legal rights?
As a commercial property owner, you have certain rights:
• The right to a fair process
• The right to challenge the repossession in court
• The right to seek legal advice
Are there alternatives to repossession?
Several alternatives exist:
Option | Description | Pros | Cons |
---|---|---|---|
Refinancing | Securing a new loan with better terms | Lower payments, more time | May be difficult to qualify |
Selling | Selling the property quickly | Avoid repossession, potential profit | Loss of asset, possible lower sale price |
Lease restructuring | Renegotiating lease terms with tenants | Increased cash flow | May require tenant cooperation |
How can you improve your financial situation?
Improving your financial situation can help prevent repossession:
• Cut unnecessary expenses
• Increase revenue streams
• Negotiate with suppliers and creditors
• Consider downsizing or relocating
What professional help is available?
Several professionals can assist you:
• Commercial property solicitors
• Financial advisors
• Insolvency practitioners
• Business consultants
How long does the repossession process take?
The repossession process can vary, but it typically takes several months. This gives you time to explore options and find a solution.
What happens if repossession is unavoidable?
If repossession can’t be avoided:
• The property will be sold at auction
• Any remaining debt may still be your responsibility
• Your credit rating will be affected
Can you buy back your property after repossession?
In some cases, you may be able to buy back your property after repossession. However, this can be complicated and may require significant funds.
How can you prevent future repossession risks?
To prevent future risks:
• Maintain a healthy cash flow
• Diversify your income streams
• Keep open communication with your lender
• Regularly review your business plan
What are the long-term effects of repossession?
Repossession can have lasting effects:
• Difficulty obtaining future loans
• Damage to your business reputation
• Potential personal financial implications
Are there government schemes to help?
The UK government occasionally offers schemes to support businesses facing financial difficulties. Check with your local business support organisations for current options.
Remember, facing commercial property repossession is stressful, but you have options. Act quickly, seek professional advice, and explore all available avenues to find the best solution for your situation.
Threatened With a Commercial Property Repossession?
Has your commercial property recently been threatened with repossession? Feeling frustrated or uncertain when faced with a situation like this is completely normal.
However, the good news is that you don’t have to face it alone. Our team at Property Saviour consists of experienced professionals ready to help you navigate this difficult time.
We offer a unique solution to protect you, your business, and your credit file. With our decades of experience, we have the knowledge and expertise to put a stop to your repossession.
We can work closely with you to prevent the repossession of your property and simplify the sale process. Our cash-buying services are completely confidential, ensuring your privacy throughout the entire process.
We work quickly to stop the repossession and assist you in moving forward once the sale is complete.
How We Can Help?
Just like with residential mortgages, commercial mortgage lenders hold the title deeds to the property as security. If there are any arrears, the mortgage lender will take steps to repossess the commercial property.
Why not sell your commercial property? Selling your commercial property couldn’t be easier.
You can sell your commercial property within 10 days. Request a callback to get the ball rolling:
Sell with certainty & speed
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.