SFP Property has extensive experience in taking LPA Receivership appointments, helping our clients achieve the right outcomes where property is being used as security for a loan and the borrower is in breach of their loan facility.
Typically, Law of Property Act (LPA) Receivership occurs when a borrower defaults on mortgage payments or where relations between the lender and borrower have broken down and a breach occurs. Under the terms of the loan, which is secured against the property, the lender has the right to appoint a receiver to act on their behalf, to ensure recovery of the rents and debt.
LPA Receivers are experts who handle the day-to-day management of the property – insuring, managing, dealing with tenants and resolving complex occupational disputes, collecting rents, dealing with planning or statutory/regulatory issues and formulating strategy to decide on the best way to maximise recoveries at least cost to lender and borrower.
Having been approached by a lender who anticipates the need to appoint a receiver, SFP Property provides (at no cost) an initial strategy report, setting out the potential routes to a swift resolution. This report is based on the documentation made available and where possible an inspection of the property itself.
Whilst receivers can be appointed individually or jointly, a policy, SFP Property typically takes appointments jointly, with qualified personnel available at all times.
Having been appointed as Receiver, SFP Property takes over the day-to-day management of the property while also negotiating with the lender and borrower to identify an acceptable resolution. This might involve the borrower correcting the breach, introducing an alternative lender willing to finance the debt away from the current lender, or letting or asset managing/selling the property to recover the debt, or maximise realisations.