Collapsed Yorks & Humber properties set for market

The financial crisis has led banks taking a longer view over the future of commercial properties where loan repayments have defaulted and they have not immediately put them into receivership. However, the property consultant’s Northern Property Receivership Team says this may be about to change.

Simon Cullimore, a fixed-charge property receiver at King Sturge’s Leeds office, said a combination of factors, including that banks recognise that they had to take some responsibility for the property market crash and that quick sales to recover funds had been impossible because of the credit crunch, had led banks to restructure bad debts rather than recover them.

“Last year’s economic recovery was stronger than many forecast and, if the last quarter’s GDP contraction turns out to be a blip as many economists expect, lenders may be able to crystallise commercial losses this spring and sales which have so far not been part of their strategy may come to fruition,” Cullimore said.