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: 26 February 2020
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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 enjoys under the terms of the charge. This is likely to mean that the receiver will have the power of sale, but this should always be checked as it is the terms of the

Caroline Clark
Caroline Clark


Caroline Clark's insolvency career began over 30 years ago and includes senior responsibility for a portfolio of cases as well as regulatory experience working for the Joint Insolvency Monitoring Unit and national responsibility for compliance and technical matters working for major UK practices. Caroline is now a director of RMCSC, giving high quality insolvency compliance and management advice. As well as being a qualified insolvency practitioner Caroline has an MBA. This, together with experience outside the insolvency profession means that Caroline is qualified to advise about strategic and operational management as well as insolvency. Caroline is also a member of Mensa. Caroline has experience in most areas of personal and corporate insolvency but areas of particular interest include:- Compliance with statute and the principles of best practice including SIPs Strategy, systems and policies Risk analysis Complaints Progress reports Remuneration Regulation and fee estimates The practical and commercial application of legal and regulatory insolvency requirements Conflicts of interest

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Jurisdiction(s):
United Kingdom
Key definition:
Interim moratorium definition
What does Interim moratorium mean?

Brief period of moratorium when certain criteria are in place, prior to either administration or company Voluntary Arrangements (CVA).

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