LPA receivership: What are the benefits?

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Recent figures suggest that the construction and property sectors are suffering during the economic downturn; Moorfields Corporate Recovery, experts in Law of Property Act Receivers (LPA), outline the benefits an lpa receivership can offer.

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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.

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.

For large-scale developments, [LPA receivership may be the only practical solution left to lenders when they are determined to recoup lost income.

Insolvency practitioners Moorfields Corporate Recovery LLP is one of the UK's leading independent firms of restructuring and insolvency specialists. They have been awarded Corporate Recovery Firm of the year 2012.

Phil Smith, Partner, Moorfields Corporate Recovery says;

“The environment many businesses are operating in this year is extremely tough, particularly within the construction sector. An increasing number of property based businesses are undoubtedly going to encounter difficulties this year.

“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. Seeking the advice of recognised insolvency practitioners and LPA receivers such as Moorfields Corporate Recovery can make all the difference to ensuring the best possible outcome for all parties involved.

“One of the real benefits of recruiting the services of experts is the fact that 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 can help to break the stalemate.

“We have carried out several successful LPA receiverships already this year, including a successful hotel receivership and other property receivership deals in the retail, leisure and care sectors. It is our partner led approach and expertise in property that makes us uniquely placed to manage LPA receiverships for our clients.”

The benefits of an LPA receivership:

  •     An LPA receiver can act as a professional intermediary.
  •     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
  •     An LPA receiver can insure the property, making it secure, ordering repairs to be carried out or even seeking planning permission.
  •     LPA receivers can assist and manage the eviction of squatters.

Notes to Editors

For further enquiries please call Katie Smith on Tel: 0207 186 1143 or email ksmith(at)moorfieldscr(dot)com

About Moorfields

Moorfields Corporate Recovery LLP is one of the UK's leading independent firms of restructuring and insolvency specialists. Our highly skilled teams include restructuring professionals and licensed insolvency practitioners who provide leadership, experience and high quality advice to companies and their stakeholders in financially distressed situations.

Moorfields Corporate Recovery is proud to have been awarded Corporate Recovery Firm of the year at the Insolvency and Rescue Awards 2012.

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Dale Lovell
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