Introduction
Contact for more information
Sharon Kirkham Partner 020 3815 2560
The purpose of this guide is to explain the legal process involved in charging properties as well as to provide practical tips to simplify the process and assist you to maximise the value of your property portfolio.
We understand that the securitisation of your portfolio goes beyond just property charging. To assist with this, we have identified a number of key areas in this guide that we would recommend are reviewed as part of the overall securitisation process.
We have also attached an indicative timetable setting out the necessary steps in order which can be tailored to our clients’ requirements. In our experience, it takes an average of twelve to sixteen weeks to charge a portfolio of properties with co-operation by Local Authorities.
If you have any queries on this guide or would like a quote for acting for you on a charging exercise or are interested in any of the other services we have to offer, please contact Sharon Kirkham.
Specialist team for smaller RPs and RSLs
We understand the pressures and obstacles faced by Smaller RPs and RSLs and can guide them through the challenges that play a pivotal role in the sector so that they can concentrate on what they do best – providing quality housing and care services to their residents.
We recognise that these challenges faced by Smaller RPs and RSLs will also extend to their securitisation and refinancing exercises and as a result we have set-up our own specialist team in the Securitisation Team dedicated to Smaller RPs and RSLs which is headed up by Saghar Roya, one of the Partners in the London office.
Saghar works very closely with numerous Smaller RPs and RSLs in the G320 and nationally to provide specialist advice on all securitisation matters. We also provide bespoke training aimed at helping Smaller RPs and RSLs maximise and enhance their property portfolios and upskill their staff with a view to streamlining the securitisation process.
Stress-free Securitisation
Ways in which the charging process can be made stress-free:
- By holding a free Security Training Seminar for your Finance and Development Officers which looks at the charging process and highlights the most efficient and cost-effective ways of preparing your properties for charging.
- By ensuring that your Development Officers retain and collate the documentation required for charging properties as detailed in our bespoke precedents (such as the DEV1 Form) so that we are not reliant on third parties supplying this information.
- By getting your uncharged properties ready for charging in advance of requiring the funds so that any issues which may make the properties unacceptable as security or the charging process more problematic are identified in advance and dealt with.
- By determining if any of your existing facilities are heavily over secured and arranging for any excess security to be released and prepared for charging to secure new funding, making sure you choose properties to be released which are acceptable as security and will achieve the same value as is currently being attributed to them taking into account funders’ current requirements.
- By ensuring that mortgagee exclusion clauses in your Section 106 Agreements, Transfers, Leases, Nominations Agreements etc. are adequate to enable the higher MV-STT (Market Value Subject to Tenancies) basis to be achieved, so that you maximise your funding capacity. We offer a service of reviewing mortgagee exclusion clauses before you acquire or develop properties to assist with this.
- By assessing whether your ex-LSVT units are capable of being uplifted in value from EUV-SH (Existing Use Value – Social Housing) to MV-STT following deregulation.
For further details of the above, please contact Sharon Kirkham and please do take a look at our DEV1 Form.
To receive more briefings and invitations from Devonshires, click here to join our mailing list.
020 7628 7576