What are the central benefits of LPA receivership?
With the latest figures from the Royal Institute of Chartered Surveyors (RICS) revealing a mixed input for the construction sector, an increasing number of prime developments across the UK are falling into receivership under the management of Law of Property Act Receivers (LPA).
Law of Property Act Receivers are called in by lenders to manage a receivership when those who have used property as security against a loan, such as developers or individuals with a mortgage, have breached the conditions of their loan agreement, such as failing to keep up with loan repayments.
The latest figures from the Department for Business, Innovation and Skills (BIS) insolvency service show that there were 276 receivership appointments in the final quarter of 2012 (including both administrative receivers and other fixed charge receiver appointments, for example under the Law of Property Act 1925).
For large-scale developments, LPA receivership may be the only practical solution to recovering the large sums of money that have been ploughed into the development.
Here are just some of the benefits of an LPA receivership:
An LPA receiver can act as a professional intermediary
If relations between a lender and borrower have broken down to the point where an agreement cannot be reached, then drawing on the legal remit and expertise of an LPA receiver could help to break the stalemate.
The LPA receiver can then take over the functions of a landlord, including collecting rent and obtaining possession of a property if it is occupied illegally.
An LPA receiver can deal will all aspects of property management
Working to meet the interests of the lender as well as working to recover outstanding debt, an LPA receiver can take charge of the property by insuring it, making it secure, ordering repairs to be carried out or even seeking planning permission.
In order to ensure all debts are recouped, an LPA receiver can even arrange for a property to be let out or sold if necessary.
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.
View all Business Insights