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Fixed charge (LPA) Receivership

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Our experienced, independent receivership team has the broad base of understanding and expertise to enable us to maximise the recovery of value from non-performing assets.

This may be through helping with a consensual work-out, perhaps acting as bank monitor / shadow receiver or accepting a fixed charge / LPA receivership appointment leading to the sale of the asset after implementing any appropriate value-add initiatives.

Our surveyors are experienced in dealing with non-performing loans and are registered property receivers. Our strategies are proven to drive value recovery for lenders and we understand the potential impact of a fixed charge receivership appointment being made, and will work with all parties to reassure them.

We fight your corner to maximise the amount recovered, whether this is through an immediate sale or first requiring a programme of asset management initiatives.

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Key Contacts

Tony Guthrie

Partner

Jenny Rodericks

Partner

FAQs

Frequently asked questions

  • What is a fixed charge receiver?

    When a lender has fixed charge such as a property mortgage and other assets, a receiver can be appointed to take control of the asset and sell it on behalf of the lender in order to repay a debt.  A receiver will deal with the asset charged and in some cases, is able to run the property and divert income to the lender. Many refer to the fixed charge receiver as an LPA receiver, meaning they have been appointed under the Law of Property act.

     

    It’s important to note that this kind of receivership is not a formal insolvency practice and while receivers are often appointed when the borrower has not managed to repay a loan, this kind of receiver can be appointed when there have been specific breaches of the loan agreement. An example of this kind of breach would be when a loan-to-value cannot be met by the borrower.

  • What are the benefits of a fixed charge receivership?

    With an LPA receiver, the lender does not become what is known as a “mortgagee in possession.” It is also useful to bring in a third party and outside expertise and resources to insulate the lender from any legal liability. A receivership also avoids court proceedings, meaning the appointment is completely informal.

  • Are LPA Receivers Regulated?

    There is no regulatory body for fixed charge receivers and as LPA receivership is not related to an insolvency process, it is not regulated by the Insolvency Service. With this in mind, the receiver can be a member of a professional trade body.