LPA Receiver2023-09-07T09:25:21+00:00

LPA Receiver

We also specialise in defending against Buy to Let Mortgages and commercial loans, including Bridging Loans.

LPA Receiver

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What Is LPA Receivership?

The Law of Property Act (LPA) 1925 gives the Mortgagee (your lender) the power to appoint a Receiver of rent. An LPA Receiver can be appointed after only 2 months of payment arrears. The LPA Receiver (typically an insolvency practitioner) has a broad spectrum of power and will add significant charges to your account.

The LPA receiver’s role is to oversee the management and eventual sale of the property in order to recover debts. Importantly an LPA receiver can arrange the sale of your property with a sitting Tenant, which is likely to attract a much lower offer.

How to Stop an LPA Receivers

There is no direct statutory power to stop the receiver. Our advice and guidance could be key to preventing receivership or reversing it if they have been instructed.

First, we will challenge the validity of the decision and certify that the appointment is well-founded. If it is, we will then help attempt a negotiation with your lender to give you more time to make repayments or to refinance the debt in some capacity. Our priority is to help protect your investment and ensure that you remain as in control as possible.

How Can We Help?

If an LPA receiver is dedicated to protecting the interests of the lender, at HMS we are dedicated to protecting the rights and interests of the borrower. With years of experience dealing with insolvency issues, we are able to help stop the LPA receiver from taking possession of your property.

Contact us today and allow us to guide you through your available options.

Buy To Let Mortgages and Commercial Loans

As they are not regulated by the Financial Conduct Authority (FCA), buy-to-let mortgages and commercial loans are handled very differently to residential mortgages. In fact, there is no government regulation that determines how these loans are to be administered and subsequently no regulatory body for a homeowner to complain to.

Therefore, as the owner of the property, you are limited to directly negotiating with your lender. When this has broken down and you are facing court action or eviction, you must be able to gain the favour of the court to suspend the action they are taking.

This is where we come in. We have years of experience in helping clients prevent the sale of their properties. Our specialist knowledge of statutory and case law will be essential to understanding what power your lender actually has over you and your home.

Each case is different, and so the route that we take will depend upon which lender you have and how many properties you have with them. Some lenders will immediately instruct a Law of Property Act (LPA) receiver; at which point, they will be able to collect the rent from current tenants without any recourse to the homeowner or even sell the property without evicting the tenants.

No Two Cases Are the Same

Ideally, you want to prevent your case from getting to this stage. An LPA receiver can be instructed when you are as little as 2 payments in arrears, your term has expired or simply because you have broken a part of the terms and conditions of your contract which can include, leaving the property empty or allowing a family to reside at the property.

Homeowners that have their property let to a private individual or family also have to be aware of their tenants’ rights and what they can get from the court directly. We have had to resolve a number of cases where the tenant and the owner have made an application at the same time that did not tell the same tale, creating far more confusion for the court than was necessary.

With commercial loans, especially those linked to a company or business overdrafts, the lender can “call the loan in”. This means that the terms and conditions to which you were bound are no longer in place, resulting in a demand for the immediate repayment of the whole loan. Unfortunately, there are few homeowners that are in a position to meet such a demand, especially when the demand for repayment is on the back of a difficult financial period.

These are all circumstances that we are both used to and specialise in dealing with. Importantly, no two cases are the same, and we, therefore, need to find out your specific circumstances so that we can provide bespoke advice and solutions.

Call 0808 109 9827 today if you find yourself or your business facing receivership. Our experienced team is available 7 days a week to help you navigate this process and prevent the loss of your home.

How to Stop Repossession

Make sure you talk to your lender

1. Don’t take emergency finance

Other companies may have misled you into believing that a bridging loan or short-term finance is your best or even only choice. That’s not true. The temporary relief will be short-lived when you are facing repossession for a much higher sum.

Try not panic and stay calm

2. Don’t accept a quick sale

In desperate situations, you may be tempted to accept a below-market-value “instant cash” offer on your home. Avoid quick sale companies at all costs—they profit from your misfortune. We can provide better options.

 Review household expenditure

3. Get us to help

We can help you navigate through your options. We will force your lender to give you time to make a decision that suits you. Our first step is to assess affordability for you to keep the property long-term. If this is not an option, then we will ensure you speak to regulated finance professionals or have time to sell your property on the open market.

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