Q&As

Can a LPA receiver apply for lease extension?

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Published on LexisPSL on 18/09/2017

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Can a LPA receiver apply for lease extension?

Can a LPA receiver apply for lease extension?

The statutory powers conferred on the receiver are set out in section 109 of the Law of Property Act 1925 (LPA 1925). Any express powers conferred on the receiver by the mortgagee shall have the same effect as if they were contained in LPA 1925. Section 42(1) of the Insolvency Act 1986 (IA 1986) sets out the powers of a receiver in IA 1986, Sch 1. It states that receivers have the power to grant or accept a surrender of a lease or tenancy of any of the property of the company, and to take a lease or tenancy of any property required or convenient for the business of the company. See our Practice Notes: Roles, powers, functions and duties of an LPA or fixed charge receiver and Receivers appointed by statute, including LPA receivers for more information.

The primary function of a receiver appointed by a mortgagee is to ensure repayment of the debt owed to the mortgagee. These powers are granted in part under LPA 1925, but due to the restricted nature of those powers, more usually from express powers contained in the mortgage deed itself. In addition, the receiver will have various implied powers that arise by virtue of the capacity in which they act. For example, as agent of the mortgagor, the receiver will

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