The Role of Surveyors as LPA Receivers
Many people will understand the role of an LPA Receiver but most will associate the role as a job fulfilled by an insolvency practitioner or accountant. That is not always the case though…
Many times LPA work can be carried out by practicing surveyors; usually an LPA Receiver is appointed with a view to selling the (charged) property and, where applicable, manage the property up until such a sale, including collecting any rents due.
An LPA Receiver is appointed by the lender holding a fixed charge over the property and where the borrower has failed to meet their repayments. As an LPA Receiver you have the powers and duties specified in and limited by the Law of Property Act 1925. These, however, can be modified by express provisions in the instrument of appointment by the Lender. The appointment of an LPA Receiver gives the lender a degree of legal separation from the handling of the property, so that the Receiver takes the risk of liability on the lender’s behalf.
The work I have done as LPA Receiver and where we continue to work in this area of the law can be both extremely interesting and rewarding, although the situations that lead up to such jobs can also provide quite sobering stories too.
As Harris Lamb deal with multiple sectors (industrial/warehouse, offices and retail), when called in we can respond promptly and provide appropriate advice and a comprehensive service that covers all aspects of holding the property until sold. Effectively we treat the asset as our property where we are looking to maximise value and income and make sure holding costs are appropriate and kept under control.
Thus, appointing a surveyor as an LPA Receiver can hold several advantages for the Lender/LPA appointee, not least speed and ability in dealing directly, but by maintaining all the duties involved under ‘one roof’ so to speak but also some of the cost benefits too that come out of such appointments.
My latest job as LPA Receiver on an office building in Worcestershire is a great example of where our combined skills across the firm and my remit to sell the freehold with vacant possession means our Client will reap the benefits from our appointment, seeing the job through to completion with one main point of contact throughout.
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By Jacqui Bayliss, Commercial Agency.