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Cutting out the dead wood?

Posted by: andrewlund

Paradoxically the recent stream of news about business failures could be a signal that an economic recovery is under way. Experience of past Recessions shows that as Banks become more confident about the future they are more prepared to pull the plug on ailing businesses, take their losses and recycle what capital is left. The same goes for the housing market. A recent analysis by Fitch Ratings reported that 87% of properties taken into possession since 2008 have been sold at a price below the balance of the related loan with the average sale price reflecting a discount of 23% compared to the indexed original property value. Banks are taking a bigger hair cut on flats (30%) and higher valued properties with the latter being difficult to sell because of tighter mortgage lending. New build properties are particularly badly affected suffering an additional discount of around 9% over pre-occupied properties when taken into possession. 
Andrew Lund
Andrew Lund

Compliance Officer for Legal Practice

Andrew oversees the Firm’s Quality Systems and is committed to making sure that our client’s receive the very best customer care and attention along with the best marketing and legal advice in the area.

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