The residential property firm’s principal says HoC advisers will be paid all backdated and pipeline commission that is owed to them, following LSL’s deal to buy HoC’s assets from administration for £1.5m on Friday. Embley says the £1.5m figure includes the costs of paying all pipeline and backdated commission.
Embley says: “Even though the business technically went into administration and was pre-packed – and we have no contractual responsibility to back-commissions – we’re paying all of those back commissions to the advisers.
“We’ve bought all of their assets. The only thing we haven’t bought is the business. And with buying the business would come liabilities, and with £6m of debt, we haven’t assumed the liabilities other than the advisers.”
The last published accounts for Home of Choice for the year ended March 31, 2009 show it had over £4.6m in bank loans falling due within two and five years.
It was revealed today that Home of Choice staff and appointed representatives will initially trade under the LSL Property Services subsidiary First Complete in order to allow brokers to continue trading uninterrupted.
It is thought that the trading name Home of Choice will be resurrected at some point, possible as a trading name of First Complete, but to avoid delays in writing new business, it was thought better to trade under First Complete in the short term.