The following Restructuring & Insolvency guidance note Produced in partnership with John Hughes of Shakespeare Martineau LLP provides comprehensive and up to date legal information covering:
The effect of the appointment of an LPA/fixed charge receiver is very different from that of an appointment of an administrator, liquidator or trustee in bankruptcy.
The appointment of an LPA/fixed charge receiver is a remedy of a mortgagee. It is not an insolvency procedure and does not necessarily mean that the mortgagor is insolvent. Depending on the terms of the lease, remedies, such as forfeiture, that are available to landlords/lessors when a lessee becomes subject to insolvency procedures may not be triggered by the appointment of an LPA/fixed charge receiver. However, the appointment does have an effect on property, albeit less drastic than where insolvency procedures are being taken.
The main impact of the appointment of an LPA/fixed charge receiver is on the role of the mortgagor of the property.
The LPA/fixed charge receiver is deemed to be agent of the mortgagor (not the mortgagee) and therefore can exercise all the powers that the mortgagor has in respect of the property owned by the mortgagor subject to the charge.
The agency is terminated by the appointment of a trustee in bankruptcy or liquidator. For further information, see Practice Note: Effect of bankruptcy or liquidation on the position of receiver as agent of the mortgagor.
The LPA/fixed charge receiver is sometimes
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234