What are LPA Receivers?
Law of Property Act Receivers act for banks and private lenders who have secured their loans by a Legal Charge (mortgage) on a property. Under the terms of the Legal Charge the lender can appoint a Receiver to deal with a property when the terms of the mortgage are not being met – usually when repayments and interest are not being paid.
Why are LPA Receivers needed?
Lenders can face a number of circumstances in which they do not have the capacity, legal or physical, to deal with properties. Lenders may not wish to expose themselves to the liabilities that attend a corporate body taking possession of a property directly. LPA Receivers are experts who can manage the property, deal directly with occupants, outstanding problems, insurance and repairs. Receivers collect in money to repay the debt, from rents or by selling the property.
What happens in an LPA Receivership?
The role of the LPA Receiver is to focus on recovering the debt owed to the lender. This involves taking control of the property and, effectively, standing in the shoes o f the owner. In most cases the task is then to arrange an early sale of the property in order to repay as much of the loan as possible.Lenders review each circumstance, or commission a report on the appropriateness of Receivership. This may highlight issues not previously known to lenders which may effect how a property can be dealt with. Details of planning permissions and other licensing should be examined at this stage if at all possible. Factual occupancy arrangements are checked and, very often, the borrower is asked to contribute, to see if there is a way that the loan can be repaid without further formal action.Once appointed, the LPA Receiver takes over the role of the owner and the owner may not deal with the property in any way. The Receiver has full discretion as to how to deal with the property. If obtaining planning permission or some other action can improve the realisable value, the Receiver may decide to pursue the opportunity but is not obliged to do so.
Are LPA Receivers always appointed?
No. A pre-Receivership report will offer guidance and possible solutions on how to deal with the outstanding loan and may offer proposals on resolving a broken down relationship between the lender and customer which would lead to a successful repayment of outstanding liabilities. If appropriate the experts can act as go-betweens to help resolve matters.
Who acts as LPA Receivers at Michael Parkes Surveyors Ltd?
LPA Receivers are individually appointed and usually two are appointed together. Michael Parkes and Denise Ford are both Fellows of the Non-Administrative Receivers Association (NARA) who guide and provide continuous training for LPA Receivers. They are also members of the Royal Institution of Chartered Surveyors, governed by that body’s code of conduct.
What geographical areas do LPA Receivers cover?
We are able to deal with property all over the UK and, when appropriate, within Europe.
Further information is available:
Click on the link for:
Law of Property Act Receivers -  Who Are They And What Do They Do?
When is it appropriate to appoint an LPA Receiver? - Checklist for Lenders
Case Examples - Examples of Outcomes
Informal DiscussionsWe welcome informal discussions
Contact Denise Ford at our Head Office
Michael Parkes Surveyors Limited
Reading House
Waterside Court
Neptune Close
Rochester
Kent ME2 4NZ
Telephone: 01634 294994
Facsimile: 01634 295372
Email:
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
|
LPA Receiverships 
