Law of Property Act Receivership (“LPA”) involves the appointment of an LPA receiver under a mortgage or fixed charge and is typically over property. The Receiver will either be a property specialist, or an Insolvency Practitioner.
Ordinarily where the mortgage is a deed, the power to appoint a Receiver is implied by the Law of Property Act 1925, hence the name LPA receivership.
LPA receivers are otherwise referred to as a Fixed Charge Receiver and should not be confused with Administrative Receivers, the details of which can be read about here.
The main purpose of appointing an LPA Receiver is to enable a trusted advisor to the mortgagor, usually a bank, to take control of and sell the mortgaged property. Appointing LPA Receivers often provides the lender, being the bank, relief from the burden of managing and marketing the property.
Once appointed, the Receivers primary duty is to the lender in securing repayment of the secured debt against the mortgage. Their duties to the mortgage provider will take precedence over the interest of the borrower.
We have acted for a number of major high street banking institutions as LPA Receivers over a number of properties together with private property developers who need the help of a Receiver to recover their indebtedness.
If you should need some further assistance or require further information in relation to LPA Receiverships, call Corporate Financial Solutions today.