Law of Property Act (LPA) Receiverships

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:

  • Take control of and to manage the property.
  • Highlight issues not previously known to lenders which may affect how a property can be dealt with.
  • Deal directly with occupants, and check their occupancy arrangements.
  • Deal with outstanding problems, insurance and repairs.
  • Collect in money to repay as much of the loan as possible, either from rents or by arranging an orderly sale of the property.

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