Commercial Property Receivership

Our expert Commercial Property team can provide specialist advice about commercial property receivership.

We advise a wide range of clients, including fixed charge receivers (also referred to as LPA receivers), banks, building societies, other financial institutions, investors, pension funds, insolvency practitioners, property developers, and businesses.

Whether you are looking for a firm to verify the valid appointment of receivers under a fixed charge or your property is subject to an appointment of receivers, we are here to provide specialist advice and support, including help resolving disputes.

We understand that these matters are often highly sensitive, involving situations where a business or professional individual has defaulted on a loan or otherwise breached their mortgage contract and has been unable to come to an alternative solution with the lender. As we have experience working with all three sides of each potential dispute – including lenders, property owners and the receivers themselves – we can take a pragmatic approach, helping the parties negotiate positive solutions, manage the assets concerned and maximise returns in the most effective way possible.

Looking for advice about commercial property receivership? Contact our highly experienced commercial property solicitors in Chichester, Fareham or Havant or fill in our short online enquiry form and we will get back to you quickly.

Our commercial property receivership expertise

Our expertise covers:

• Validating receivers’ appointments
• Advising receivers on their duties and powers as receivers and handling challenges to their appointment
• Advising lenders on the practicalities of recovering debts using fixed charge receivers
• Advising property owners, such as company directors or professional individuals, who have had receivers appointed in respect of their property, for example, because they have defaulted on a loan or otherwise breached a term of their mortgage
• Dispute resolution services, including advice about commercial mediation, arbitration and taking court action

What is receivership?

A receiver is an individual appointed to recover a debt secured over property on behalf of the secured lender (also referred to as the ‘mortgagee’). Receivers generally derive their powers under the fixed charge over the property contained within a mortgage deed, or under the Law of Property Act 1925 (the former option being more common nowadays).

While the terms fixed charge receiver and LPA receiver (or Law of Property Act receiver) are often used interchangeably, there are actually distinct differences.

An LPA receiver has powers under section 109 of the LPA 1925 to “demand and recover all income from the property” (essentially, to collect rent) and to take steps to insure the property. An LPA receiver can also delegate the lender’s powers under the Act, but this is uncommon as it does not provide the legal protection lenders tend to appoint receivers to obtain.

So, these powers are far more limited than the powers fixed charge receivers tend to be granted under a mortgage deed. Typically, the powers of a fixed charge receiver can include:

• The power to sell the property
• The power to bring possession proceedings against any occupants
• The power to take possession
• The power to do maintenance and building works
• The power to grant, vary and surrender leases and to collect rent

The receiver generally acts as an agent of the property owner (the ‘mortgagor’), so can exercise their powers without incurring personal liability. However, while acting as agent, the receiver owes all their duties to the lender not the mortgagor. The lender in turn also does not incur any liability for the actions of the receiver (so long as they do not take steps to influence the receiver’s actions).

Receivership can therefore be a very confusing concept, requiring expert advice at every stage.

The benefits of appointing fixed charge receivers

For lenders, appointing commercial property receivers can be a highly effective way to recover debts. The benefits of appointing receivers include:

• Able to appoint quickly without going through the courts (although it is essential to ensure the receivers’ appointment is validated by a member of our legal team to remove any personal liability on the part of the receivers)
• Removes the lender from any risk of personal liability in recovering the debt
• Receivers’ duties are to the lender and are typically bound to secure the best price and take steps to insure and protect the property
• Receivers are usually in a better position to enter the property, undertake work, maximise value and control rental income

Why instruct our commercial property solicitors for advice about receivership?

Receivership processes are highly complex and confusing, so it is essential to obtain specialist legal advice.

Our Commercial Property team can take a practical approach, providing sound legal advice within the commercial realities of the matter. We have a great deal of experience handling matters involving high-value property across West Sussex, Hampshire and the wider South East England area.

As well as advice about commercial property receivership, we can provide a wide range of advice to lenders and businesses on the different options available to you. We will always keep your best business interests at heart and provide tailored advice that is personalised to suit your individual needs.

When you use our commercial property solicitor, we promise:

• To always be friendly, respectful and attentive
• To listen to your concerns and answer your questions in plain English
• To provide clear, upfront quotes for handling your requirements
• To answer your phone calls and emails promptly
• To provide regular updates along the way

Get in touch with our commercial property solicitors

Looking for advice about commercial property receivership? Contact our highly experienced commercial property solicitors in Chichester, Fareham or Havant or use the contact form below and we will get back to you quickly.