What is LPA Receivership?
The property market is at the heart of the UK economy and, as we have seen recently, during periods of financial austerity commercial and domestic borrowers can experience difficulties in meeting the terms of their loans. In a depressed property market lenders will review the enforcement options available to them under their mortgage or charge.
Lenders will always look to protect their interest where they have provided mortgages to borrowers to purchase properties. When a mortgage is provided, the borrower will agree to the lender's terms and conditions, and the lender will register a charge against the property in their favour. If a borrower breaches the terms of the mortgage, this can jeopardise the lender's interest in the property. Where lenders do not want to take the risk and cost of day-to-day involvement with the property an LPA receiver will be a quick and effective solution.
LPA receivers have a primary duty to the lender. The appointment of receivers removes the responsibility of dealing with the property from the lender as the receivers will assume control and ultimately sell the mortgaged property. In some cases it may be important to take the management of the property and the rental income out of the hands of a defaulting borrower to safeguard the lender's position and maximise the return.
When to consider LPA Receivership
Lenders will always look to protect their interest and when a borrower breaches the terms of their mortgage, it can jeopardise the lender’s interest in the property. Where lenders do not want to take the risk and cost of day-to-day involvement with the property an LPA receiver will be a quick and effective solution.
When appointed as LPA receiver we appreciate that our primary duty is to the lender in securing the repayment of the secured debt. We understand our requirement to act in good faith and use our powers for proper purposes.
LPA Receivership Advice London and England
For further information on LPA Receivership near you, contact us today.