Law of Property Act Receivers

Originally a creation of the Law of Property Act 1925 (s101), the powers afforded to a Law of Property Act (“LPA”) Receiver are limited by modern standards and an appointment is usually made today under the lender’s fixed charge (mortgage) as well as under the 1925 Act. The acronym “LPA” is usually adopted as a convenient form of shorthand and is used as such below. The appointment will normally relate to real property, but can also relate to items of plant and equipment.

The Enterprise Act 2002 restricted the appointment of Administrative Receivers, considered by some industry observers as being biased towards the lender’s interests, in favour of Administrators who have a duty of care towards all classes of creditor, not just those with security.

This legislative change coupled with the massive increase in purely property related debt, where there is little, if any, useful function for an accountant or Insolvency Practitioner has caused lenders to reacquaint themselves with the LPA Receiver.

Sanderson Weatherall’s expertise in this area predates these legislative changes and our RICS Registered Receivers, who are also all members of NARA (the Association of Property and Fixed Charge Receivers), have many years of experience in acting as principals in property recovery situations. Our appointment takers are all Partners within the firm although we also have other NARA/RICS qualified surveyors working as case managers with the team.

This expertise is reinforced by Sanderson Weatherall’s track record in the corporate recovery arena (please see our Asset Advisory and Recovery pages) and experience gained in each area is used to inform the other.

In addition to a formal LPA process there are other exit routes available to secured lenders where we can advise and assist:

  • Assisted Voluntary Sales
  • Mortgagee in Possession
  • Mortgagee not in Possession
  • Assistance to Lenders seeking possession


The LPA Receivership process is not complicated, being less burdened by legislation, mainly the Insolvency Act 1986, and the LPA Receiver need only concern himself with those creditors and obligations which affect the property over which he is appointed. The appointment places effective distance between the mortgagee and the mortgagor. A Receiver, unlike an administrator, can be removed by the mortgagee at any time.

In law, the LPA Receiver acts as agent for the mortgagor (borrower) and whilst the principal obligations are to the mortgagee (lender), the Receiver has a duty of care to the borrower for proper conduct and to obtain best price at the point of sale.

Sanderson Weatherall’s LPA Receivers are fully familiar with the process, legal duties and in managing through an instruction from appointment stage to realisation of the asset. All of our senior personnel have extensive “hands on” experience of asset realisations of all kinds of property and are able to provide a reliable and effective route to market for the assets involved.

We have built up a network of agents, auctioneers and contractors throughout the UK upon whom we can call in the event we are not using our own personnel for an aspect of a case.

In the interests of transparency, we do not have any commission arrangements with any of our suppliers for property services. Any savings we have negotiated are passed on to our clients.

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Assisted Voluntary Sale

Where a lender has a cooperative borrower and there is mutual agreement that the property asset needs to be sold, then it often makes sense for the borrower to remain in occupation or control of the premises through the sale process. This can result in savings on security and insurance costs and the property may also be better presented to the market. The expense of a formal appointment is also avoided. Sanderson Weatherall has significant experience in acting as the lender’s nominated agent in these circumstances where sensitive handling of the issues is required. Contact Us

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Mortgagee in Possesion

For a straightforward property, often but not always vacant, where there is no perceived risk to the lender arising out of the security, a lender may choose to take possession of the property and then instruct an agent to act in the subsequent sale. Again, the cost of a formal appointment is avoided. Sanderson Weatherall has a dedicated team who deal with lender repossessions via a network of specialist contractors who handle the physical aspects on site in an efficient and cost effective manner. In some instances, an action for possession against the borrower is unavoidable and we manage the possession / eviction for lenders in conjunction with the lender’s legal team from inception through to the physical repossession / eviction. A Court Order will be obtained where approrpiate. Contact Us

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Mortgagee not in Possesion

In some instances, a property is considered to be unsuitable for possession or an LPA Receivership, most usually due to excessive perceived risk. A lender is still usually able to sell under its charge without either taking possession by the lender or making a formal appointment of an LPA Receiver. Care, however, needs to be taken that the actions of the lender or its advisors do not overstep the mark thus inadvertently putting the lender into legal possession with potentially adverse consequences. Sanderson Weatherall is accustomed to dealing with the careful path that must be taken in these circumstances. Contact Us

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Associated specialist advice

Sanderson Weatherall offers a full range of property services via its multi-disciplinary staff.May of these specialists have direct and “hands on” experience of working with our Receivers and their case managers in property recovery situations and are thus fully aware of the nuances of working in this specialist sector.We typically call upon the following associated disciplines: Valuation Agency Building Consultancy Property Management Machinery & Business Assets Town Planning Landlord & Tenant Business / Empty Rates Advice Contact Us

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Registered Property Receivers' Scheme

Property recovery work is a specialist area of insolvency, albeit, not subject to Government regulation. The Registered Property Receivers’ Scheme has been devised as a joint initiative between NARA (The Association of Property & Fixed Charge Receivers), the RICS (The Royal Institution of Chartered Surveyors) & the IPA (The Insolvency Practitioners Association) so as to introduce independent regulation. Scheme members are required to adhere to voluntary codes of practice which means that lenders borrowers and other stakeholders can be confident that there is structured regulation.

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Asset Advisory

With one of the country’s largest dedicated teams of surveyors and valuers, we have more than 25 years of experience in the corporate recovery and turnaround sector providing specialist advice on property, plant and machinery assets and corporate recovery and restructuring. Our teams react swiftly and effectively to all forms of recovery situations, whether these involve one local entity or multiple locations spread across a wide geographic area. We offer a full service from confidential, initial pre-formal insolvency appraisal, through formal valuation, to realisation of the assets via private treaty, tender or auction sale. Our partner led team act regularly as Fixed Charge and Law of Property Act Receivers, in relation to both property and plant and equipment. Contact Us

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