Distressed Portfolio Recovery
We take a programme management approach to property portfolios that have deteriorated across finance, compliance, and management. SVR consolidation, EPC remediation, portfolio insurance via Marsh International, and asset management intervention — all co-ordinated as a single recovery programme.
Transaction range: £2m – £50m+
Key features
- SVR Consolidation
- MEES EPC Remediation
- Marsh Insurance
- Capital Release
- Multi-Workstream
What a Distressed Portfolio Looks Like
A distressed property portfolio rarely has a single problem. The circumstances that cause a portfolio to deteriorate tend to affect all dimensions at once. Mortgages roll onto SVR as fixed terms expire without action. EPC certificates lapse, pushing properties below MEES standards. Insurance policies expire or become inadequate. Property management deteriorates as the portfolio becomes harder to manage.
A portfolio with lapsed insurance is operating in breach of mortgage conditions and is entirely exposed to uninsured loss. Properties below MEES standards face potential rental enforcement action. Mortgages on SVR are typically paying 1% to 2% above the best available fixed rate, and that margin compounds across a large portfolio into a material ongoing cost.
Unicorn Capital Advisory has managed the full recovery of a portfolio in excess of £20m from exactly this position: SVR mortgages, expired EPCs, lapsed insurance, and deteriorating management. The portfolio was stabilised and capital was subsequently released for further growth.
Benefits
- Single programme manager across all workstreams
- SVR consolidation to competitive fixed rates
- MEES EPC audit and remediation programme
- Portfolio-wide insurance via Marsh International
- Specialist property management engagement
- Capital release for growth post-recovery
Ideal for
- Portfolio owners with mortgages on SVR across multiple lenders
- Landlords with expired or sub-standard EPCs facing MEES compliance issues
- Investors with lapsed or inadequate portfolio insurance
- Portfolios where management arrangements have deteriorated
- Family offices needing a single point of contact to stabilise a portfolio
- Investors wanting to release capital from a recovered portfolio for further growth
- Portfolios facing maturing or expired debt ahead of a conventional refinance
- Owners managing covenant breaches or a phased disposal programme
Frequently asked questions
What are the MEES regulations and what happens if my properties don't comply?
The Minimum Energy Efficiency Standards require all privately rented residential properties in England and Wales to have an EPC rating of at least E. From April 2025, the rules apply to all existing tenancies. Landlords who let properties below the minimum standard face civil penalties of up to £30,000 per property. Lenders also increasingly require EPC compliance as a mortgage condition.
Can I arrange insurance for a portfolio where the existing cover has lapsed?
Yes. Through our relationship with Marsh International, we can arrange portfolio-wide commercial property insurance even where previous cover has lapsed. Marsh can underwrite complex portfolios that standard insurers would decline or price prohibitively.
What is the cost of SVR on a large portfolio and how quickly can it be fixed?
SVR rates are typically 1% to 2% per annum above the best available fixed rate. On a £10m portfolio, that is £100,000 to £200,000 per annum in unnecessary interest cost. Refinancing from SVR to fixed rate typically takes six to twelve weeks per lender, managed as a phased programme.
Can Unicorn Capital Advisory manage the full recovery programme?
Yes. We co-ordinate the full programme across all four workstreams. We engage specialist partners where required but manage those relationships and the overall programme on the client's behalf. Single point of accountability throughout.
Can a portfolio be refinanced after a covenant breach?
Potentially. A new lender will need a full explanation, current information and evidence that the underlying cause has been addressed.
Can a bridge provide time for orderly asset sales?
Yes, where the portfolio value and disposal plan support the facility, and the term allows a credible sales process.
What size of portfolio do you work with on recovery programmes?
The programme management model delivers most value for portfolios of £2m and above. We have managed recoveries up to £20m+.
Offices
Registered and North of England office: Ayrshire Lodge, Brass Castle Lane, Nunthorpe, Middlesbrough, TS8 9EB.
London office: 167-169 Great Portland Street, 5th Floor, London, W1W 5PF.
Telephone +44 7746 212528. Email som@unicorn-commercial.co.uk
Unicorn Capital Advisory is a trading name of Unicorn Capital Advisory LLP (LLP No. OC459692). Finance is arranged for business purposes only and is not regulated by the Financial Conduct Authority.
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