Rescue, Recovery, and Closure Options for Student Accommodation Owners

Privately-owned student housing could soon surpass university-provided accommodation if growth rates persist. 

In recent years, this sector has seen significant growth, with new investments and reinvestment in existing property assets. In a rapidly expanding market like this, there will inevitably be casualties. These may stem from financial mismanagement, sudden reputation loss, or a decline in demand.

If your property investment firm faces financial struggles or insolvency, it’s crucial to urgently seek expert guidance. At Vanguard Insolvency, we can evaluate options to either revive your company’s fortunes or manage an orderly closure if recovery isn’t feasible.

How can you wind up your Student Accommodation Company?

If your student accommodation company faces insolvency, you may need to consider closing it through a formal liquidation process. One option is a Creditor’s Voluntary Liquidation (CVL), initiated by directors to orderly shut down an insolvent and unviable company.

During the CVL process, the company will be wound up following the guidelines of the Insolvency Act 1986, with an appointed insolvency practitioner managing outstanding creditors and liabilities. Company assets, including owned property, will be identified and liquidated to settle creditors to the best extent possible.

Given the company’s insolvency, the amount raised from liquidation will likely fall short of the total owed. The appointed insolvency practitioner will address any inquiries from creditors regarding this shortfall.

If you intend to close your student accommodation business, it’s vital to consult with a licensed insolvency practitioner promptly.

Rescuing my student landlord accommodation business [Unlock All Effective Process!]

Occasionally, it might be feasible to rescue a struggling student accommodation business from closure. This could involve various formal and informal corporate insolvency procedures, such as Administration or a Company Voluntary Arrangement (CVA).

As part of any rescue plan, existing company liabilities can undergo restructuring or refinancing, and negotiations with creditors can be initiated to alleviate the financial strain your company is experiencing.

There’s a possibility to streamline your company’s structure, divest unprofitable properties, or renegotiate existing lease agreements. A licensed insolvency practitioner can guide you through your current options and suggest a forward-looking strategy.

Vanguard Insolvency provides professional guidance if you own student accommodation and anticipate insolvency or seek clarity on the best course of action. Contact one of our expert team members for a free initial consultation to discuss your situation.