At the beginning of 2009 we were asked by Grainger Plc to advise them on the proposed sale of Hadston Precinct, a multi let retail and residential investment in Northumberland.
We recommended that the investment was marketed at offers around £1,050,000. It was a very difficult time to sell because of the market uncertainty. There was a 50% differential between the highest and lowest offers, which clearly showed how the market was operating.
A number of offers were received at around the quoting price and whilst this was encouraging, it was essential that we identified the buyer who could perform.
In order to remove the uncertainty we asked the buyers to provide proof that funding was in place and produce a mortgage offer. We also recommended our client issue an auction type contract, so the majority of the legal work was completed by our solicitors. This meant that the buyer could not use excuses about title, search issues etc to delay the sale.
An auction type contract was issued to the buyers solicitor and it was agreed that failure to exchange within a set timetable would result in the contract being withdrawn. The contract was subsequently exchanged and the sale completed within an agreed timetable at a price in-excess of the £1,050,000 asking price.
Richard Shaw of Grainger Plc commented “we achieved a price higher than the asking price in a very uncertain market. This is because Andy recommended a sensible asking price, identified the right buyer and then gave good advice on the way the sale should be handled. He did not step back when Heads of Terms were agreed and solicitors instructed. He kept a dialogue going with the buyer, the solicitors and me as client. Overall, an excellent result and a very impressive service!”