LPA Receivers act for banks and private lenders who have secured their loans by a Legal Charge (typically a mortgage) on a property.
Under the terms of the 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. The nub of the role of the LPA Receiver is to recover the debt owed to the lender. 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.
Why is MGA needed?
Lenders can face a number of circumstances in which they do not have the capacity, legally or physically, to deal with properties. MGA will act as LPA Receiver to: