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?
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
To view the latest version of this document and thousands of others like it,
sign-in with LexisNexis or register for a free trial.