The Challenges of acting as an LPA advisor
Acting as an LPA Receiver brings individual challenges with each different case and none more so than one of the most recent assignments where I acted as LPA on a former manufacturing complex in the Black Country. Appointed by the bank, we turned around a situation where the property’s occupier sadly had to enter Receivership due to onerous pension fund liabilities and downsize into a property they owned next door. This rendered the property over which the bank had the charge, vacant and vulnerable with no income to pay off the debt.
As a large manufacturing unit the first action, as with any building, is to insure the premises and to make sure it’s secure. The temptation for thieves to strip out precious metals such as cabling from the property would be high. Security therefore was a high priority and had to be substantial and we weren’t proved wrong as metal thieves tried an assortment of methods to gain entry ranging from breaking through perimeter fencing and gates, attempting to bribe the security guards to ‘turn a blind eye’ in the middle of the night and when these failed throwing petrol bombs at the guards and dogs! Making sure your security guards are competent is one thing but having some robust professionalism is pretty important too!
In this case I was working alongside my agency colleagues from our Birmingham office as they marketed the building on my instructions. We were fortunate that after bringing together all interest and after a competitive bidding process that we instructed solicitors and completed the sale in less than 4 weeks. A satisfactory outcome for all concerned and those nights when I’d wake up wondering if the thieves had attempted to break in again all melted into the background.
As an LPA Receiver your main duty is to act in the best interests of the lender that has appointed you. These duties include collecting rent, looking after the property, making sure it’s secure, repaired and insured, managing and liaising with any tenants and if the property is to be let or sold arranging for the property to be put on the market and managing the disposal to achieve the best possible price so that the debt can be repaid. In essence an LPA Receiver steps into the shoes of the property owner and manages the asset to ensure it performs well, that running costs are appropriate and reasonable and that the best income/capital receipt given the particular circumstances is achieved.
Never easy and rarely straightforward acting as an LPA keeps you vigilant at all times and always to ‘expect the unexpected’. It requires a methodical and clear thinking approach and the ability to work with other professionals to achieve the best outcome.
For more information or help with LPA work contact myself or Andrew Lamb on 0121 455 9455 or email firstname.lastname@example.org