Q&As

If a mortgagee takes possession prior to an interim administration moratorium taking effect, is the position analogous to the appointment of fixed charge receivers? Can the mortgagee legally sell property pursuant to charge/Law of Property Act powers? What happens if the mortgagee obtained possession after the interim moratorium had begun?

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Produced in partnership with Caroline Clark
Published on LexisPSL on 26/02/2020

The following Restructuring & Insolvency Q&A produced in partnership with Caroline Clark provides comprehensive and up to date legal information covering:

  • If a mortgagee takes possession prior to an interim administration moratorium taking effect, is the position analogous to the appointment of fixed charge receivers? Can the mortgagee legally sell property pursuant to charge/Law of Property Act powers? What happens if the mortgagee obtained possession after the interim moratorium had begun?

If a mortgagee takes possession prior to an interim administration moratorium taking effect, is the position analogous to the appointment of fixed charge receivers? Can the mortgagee legally sell property pursuant to charge/Law of Property Act powers? What happens if the mortgagee obtained possession after the interim moratorium had begun?

A mortgagee seeking to take possession may choose to do so as mortgagee in possession or by appointing a receiver under the Law of Property Act 1925 (LPA 1925) (commonly referred to as the appointment of a fixed charge receiver or an ‘LPA receiver’).

The powers of a mortgagee in possession are, however, not exactly the same as those of a receiver appointed under LPA 1925. A receiver appointed under LPA 1925 has the power to receive rent under LPA 1925, s 109 and the mortgagee may also delegate powers to the LPA receiver that the mortgagee

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