LPA | Fixed-Charge Receivership
While the property recession might be over developments and property lending can still go wrong.
In these situations, often the quickest and most cost-effective route to recovering the loan is through the appointment of an LPA | Fixed-Charge Receiver who has a range of enforcement procedures available. Some appointments are inevitable, however early engagement can identify problem areas which, if addressed, turn projects around and avoid the need for a formal appointment.
Our experienced Asset Recovery advisor and LPA Receiver, Chris Price, who is both a member of the RICS and Non-Administrative Receivers Association (NARA) has advised lending clients through the property recessions of the early 1990’s and 2008/9 on projects ranging from self-build housing development, let residential portfolios, to film studios. Appointments are taken jointly with our consultant Rory Dillon MRICS FNARA being the second named receiver. Rory has 15 years’ experience advising banks and property lenders across all sectors.
LPA Receivership appointments
(Debt recovery, fixed charge)
• Development of 20 flats; Wells, Somerset
– on behalf of major bank
• Management & sale of nightclub; Swindon, Wiltshire
– on behalf of building materials supplier
• Management & sale of 39 bed, student complex; Bristol
– on behalf of principle contractor
• Repossession & sale by auction of HMO; Newport, Wales
– on behalf of major high street bank
• Management & sale of film studios; Bridgend, Wales
– on behalf of top 4 accountant
“I have worked closely with Chris on a number of complicated law of property act receiverships over the last 25 years where results have consistently exceeded the charge holders expectations “ – Andrew Glynn; Senior Partner, TLT solicitors
A summary of the options available to the lender that will secure the recovery of the debt, these reports are produced prior to a formal appointment having met with the borrower and undertaken an inspection of the property(ies).
A service that can apply where the borrower agrees with a course of action with the plan monitored by PACT. Where the borrower is able to meet agreed benchmarks a formal appointment may be avoided, however, we are in a position to step in as LPA receivers should the need arise
Formal appointments can be made quickly in the event the lender / borrower relationship has broken down. The LPA Receiver will manage and sell the property to recover the debt
The First Loss is the Best Loss
In this article, Chris Price looks at the current property lending environment and considers the benefit of employing experienced debt advisory surveyors when things go wrong.
Chris recently acted as LPA Receiver in respect of a substantial client debt incurred in the construction of student accommodation in Bristol. This was a complicated case however a full recovery was made with the Receivership being handled in a most professional manner