Pennine LPA Receivers are experienced Law of Property Act Receivers and Fixed Charge Receivers based on the Yorkshire Lancashire border serving the north of England.
At Pennine, we provide solutions! We understand that taking a property into receivership gives problems for both the lender and the borrower. Often a mediated solution between all parties can be happier and less cost for all concerned. We will be sensitive to your needs and won’t rush a property into auction just to speed our cashflow when it’s not in your best interests.
Contact us now for a no obligation confidential discussion…
LPA Receivers and what they do
LPA receivers enforce the rights a lender has when a borrower has breached the terms of their mortgage or legal charge. The Law of Property Act 1925 provides for the appointment of a LPA Receiver to carry out repossession through adhering to a standard framework which can avoid lengthy and costly action in the courts. They are appointed by the mortgagee, the bank, building society or private lender who provided the mortgage or loan secured on the borrowers property.
There is a legal distinction between the roles of LPA Receiver and Fixed Charge Receiver which is explained on our Fixed Charge Receiver page, however for ease of explanation we are using both roles interchangeably on this page for simplicity.
The LPA Receiver acts on behalf of the lender, who may not be in a position to recover what they are owed themselves. Once the terms of the legal charge that set out the terms of the loan to the borrow have been breached, the borrower is able to take possession of the property that the loan was secured on, with a few exceptions that are there to protect residential occupiers.
Taking property into receivership can be a anxious time for the parties concerned of course. We always aim to make this process as straight-forward as possible and to be courteous, fair and sensitive to all concerned.
LPA Receivers and their role prior to repossession
LPA Receivers may be involved in mediation activities on behalf of the lender prior to being formally appointed as the LPA Receiver. Depending on circumstances, they may be able to arrange for monies outstanding to be paid or other breached terms of the legal charge be rectified in a timely way without further formal action. They will also carry out investigations to assess the property’s title and the lender’s rights of redress for a breach of the conditions of their legal charge over the property. Where appropriate, planning restrictions may be checked and verification whether the property is occupied residentially or not.
From these investigations, the LPA Receiver can report their findings and a recommended forward path.
Instructing a LPA Receiver to act and the repossession process
LPA receivers are individually named appointees who may work singularly or in partnership with other named appointees. Once appointed by the lender, the LPA Receiver/Fixed Charge Receiver has full discretion as though they are now the owner of the property and can sell the property to recover what is owed to the lender. The fees and costs incurred by the LPA Receiver are added to the amount owed by the borrower. The process includes these activities:-
- Serve notice on the borrower that their property is now under the control of the LPA Receiver; they may not now enter the property or deal with it in any way without permission of the LPA Receiver.
- Liaise with the borrower to see if return of monies outstanding or other breeched terms of the legal charge can be rectified in a timely way without further formal action such as the sale of the property.
- The property’s value is critical to the outcome and the LPA Receiver will take steps to ascertain a fair forced valuation for the property to ensure that any subsequent sale value is fair to the borrower and lender.
- Where the sale raises insufficient funds to meet the debt to the lender, the borrower still owes that amount which can be recoverable through the courts. Equally any net residue from the sale will be due to be paid to the borrower.
No obligation consultation
If you are considering appointing a LPA receiver, contact us now for a free no-obligation discussion and a full explanation of our process.