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Property Issues & LPA Receivers

As a company director, you may face difficulties if a commercial lender appoints a receiver under the Law of Property Act 1925. The lender can take action if rent has been outstanding for (usually) three months or more. The legislation gives them the power to collect rent themselves and offset it against the debt.

Landlord borrowers then have the problem of continuing liabilities for outgoings such as upkeep of the building, commercial rates and tax on the rent without the rental income to cover any of these bills.

The situation will need prompt action before the situation becomes critical. For a director already experiencing financial difficulties, this has the potential to worsen matters considerably.

At Isadore Goldman, we are experts in insolvency and restructuring. We can check that a receiver has not exceeded their powers and discuss the options available to you.

We have several expert property lawyers who have extensive experience in advising on property-related matters in insolvency and during times of financial instability.

Our services include:

  • Immediate advice on your rights following the appointment of an LPA receiver or fixed charge receiver
  • Checking that the receiver has not exceeded their powers
  • Negotiating with your commercial lender
  • Related claims against directors

For immediate, expert advice on dealing with the appointment of an LPA receiver, you can contact your local Isadore Goldman office in London, Norwich or Portsmouth, or email


Why choose Isadore Goldman for help with LPA receivers?

Independently accredited expertise

We specialise solely in issues relating to bankruptcy, insolvency and restructuring and are known as one of the country’s leading law firms in this complex, fast-moving and challenging sector.

We are accredited by the main legal directories, Chambers & Partners and the Legal 500. Chambers commends us for our hands-on, high-quality service led by experienced senior lawyers, rather than the common method of delegation to less experienced juniors used by many large firms.

A clear assessment of your options

Our advice will be clearly explained and we will give you an honest opinion of your situation. We will discuss the options open to you and the advantages and disadvantages of each, as well as provide guidance as to the best course of action.

We have the commercial expertise to look at your circumstances as a whole and advise you in the light of what you want to achieve going forward and whether this can be realistically accomplished.

Robust representation

We will always take prompt and decisive action wherever possible to protect your situation, your company and your assets. Whether this is by defending you against legal action or establishing that another party has exceeded their authority, we will tackle the situation without hesitation and ensure that your rights are upheld.

A proven track record of success

As experts in business financial affairs, we have a strong track record of success in helping company directors manage complex situations and saving businesses from collapse. We are innovative problem solvers, and we will go the extra mile to give you the help and advice you need.

Immediate advice on your rights following the appointment of an LPA receiver or fixed charge receiver

An LPA receiver refers to a receiver appointed under the Law of Property Act 1925. A commercial lender usually has the power to appoint an LPA receiver if no payment has been made by a borrower for three months, no interest has been paid for two months, or the mortgage conditions have otherwise been breached.

LPA receivers’ statutory powers are limited to:

  • Demanding and recovering all income due in respect of the property, including the rent
  • Insuring the property

The receiver is entitled to charge for their services and take this out of the money they collect, meaning that not all of the rent they receive will be set off against the debt and related expenses.

A fixed charge receiver will usually have wider powers than an LPA receiver. This is a receiver who is appointed under the terms of the loan documentation, and this documentation will set out when a receiver can be appointed and what powers they will have.

It is usual for a fixed charge receiver to have the following additional powers:

  • To sell the property
  • To continue development of the property
  • To continue trade at the property
  • To enter into a lease of the property

If a property is sold, the receiver has a duty to achieve the best price. However, if they sell it with a sitting tenant, this could be less than would be achieved if the property was empty.

You are strongly advised to contact expert company receiver solicitors as soon as you are notified that a receiver has been appointed. We will look at the receiver’s powers and discuss the best way of managing the situation and what your options are in dealing with the receiver.

As a property owner, your immediate problems will relate to the need to continue paying outgoings, such as commercial rates and tax on the rental income which still needs to be paid even if you are not receiving the rent yourself.

Directors can quickly face financial problems that can escalate if not tackled straightaway. We will take prompt action, discussing potential strategies with you and taking all possible steps to help you through the difficulties.

Dealing with issues at this stage may mean that other actions can be avoided. A receiver is only concerned with the property and rental income, not with other creditors and other debts that you may owe. We can advise you on the best way to deal with matters to try and prevent other enforcement action from commencing.


Checking that the receiver has not exceeded their powers

A receiver is restricted to acting within the authority of the Law of Property Act 1925 or the terms and conditions contained in the legal charge. They must give you notice of certain actions and comply with other regulations.

We will check that the receiver has not acted unlawfully. Rent can be collected by order of the LPA receivers, but their other powers are limited. We will also look at the validity of the original charge, making sure that it was registered at Companies House within 21 days of creation and that the terms and conditions have been complied with.

Where we find that errors have been made or that property receivers have exceeded their powers, we will discuss the implications with you and decide how to approach the situation.


Negotiating with your commercial lender

Where possible, we can enter into negotiations with the lender on your behalf to try and come to an agreement over the debt. In some circumstances, this may be preferable to them, for example, if it seems unlikely that the receiver will be able to sell the property for enough to cover the debt.

We can explore the options and discuss whether a repayment schedule or reduction in the amount can be agreed upon.


Related claims against directors

Once an LPA receiver or fixed charge receiver has taken over receipt of the rental income, directors may face claims from other bodies, such as tax authorities and the local authority in respect of business rates.

If other creditors see that a receiver has been appointed, they may increase pressure to collect payments or start proceedings to recover debts.

We can advise you on any claims that you receive and our advice to you as a whole will take into account the risk of related actions that could be pending.

For more information on our related services, see our Claims Against Directors page.


Contact our solicitors for help with LPA receiverships today

For clear and practical advice about dealing with property in receivership, please speak to our expert team today. You can get in touch at one of our offices in Norwich, Portsmouth or London, or email