LPA receivership – what do I need to know about the process?

Law of Property Act (LPA) Receivers are appointed by private lenders or banks who have used a property as security or collateral against a loan, and who need to take action if the terms of the loanare not being upheld.


This can include instances such as when interest is not paid or when repayments are not being met. As an example, LPA receivers may be appointed over a property owned by a buy-to-let landlord, when the landlord is unable to meet their mortgage commitments as a result of tenant arrears.


Whilst acting as agent of the borrower, the principal duty of an LPA Receiver is to protect the interests of the mortgage lender, ensuring repayment of the secured debt.


Why are LPA Receivers called in?


The services of LPA Receivers are called upon in instances where lenders feel that they don’t have the legal or physical capacity to take charge of the property in question.


LPA Receivers use their expertise to manage all aspects of the property including freeholder liabilities, insurance and repairs as well as liaising directly with the occupants of a property.


What does the LPA Receivership process involve?


In the first instance, lenders may commission a pre-receivership report to identify if an LPA Receivership is an appropriate course of action for a particular borrower. If this is deemed to be the case then the LPA Receiver effectively takes on the role of the property’s owner, and has the freedom to deal with a property in any way that they see fit. This may include the early sale of a property, rectifying planning defects, obtaining vacant possession from tenants or developing out to enhance value.



If your lender has notified you that they are proposing to appoint an LPA Receiver or your property or properties are already in lpa receivership, you may want to seek professional advice.


If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.

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