Q&As

A legal charge over a property does not contain any power to appoint a receiver or take possession. The chargee needs to take possession of the property in order to discharge an outstanding debt. Would the correct procedure be for the chargee to apply for an order for sale or an order for possession?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 28/11/2017

The following Property Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A legal charge over a property does not contain any power to appoint a receiver or take possession. The chargee needs to take possession of the property in order to discharge an outstanding debt. Would the correct procedure be for the chargee to apply for an order for sale or an order for possession?

A legal charge provides notice to the world of a security enforceable against the equity in the property against which it is secured (or, where there is more than one owner, against the interest of the person or persons in the property). The purpose of such a charge is to protect the interest of the creditor and, subject to there being sufficient equity in the property, the charge holder is entitled to be paid the sums secured in the order of priority of the charge.

Most modern charges or mortgages will contain the express power to appoint a receiver. In default of such a provision, it is likely to be possible, in the event that monies due under the charge have not been paid, for the beneficiary of the charge to appoint a Fixed Charge Receiver (more commonly known as an LPA Receiver) pursuant to the power contained in section 109 of the Law of Property Act 1925 (LPA 1925) (

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