Procedure relating to appointment of LPA or fixed charge receiver(s)

Published by a LexisNexis Restructuring & Insolvency expert
Practice notes

Procedure relating to appointment of LPA or fixed charge receiver(s)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes
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Section 101(1)(iii) of the Law of Property Act 1925 (LPA 1925) enables a Mortgagee to appoint a Law of Property Act receiver (LPA receiver) where the mortgage is made by deed. The powers of an LPA receiver are set out in LPA 1925, s 109(3) and are limited to the power to demand any income (including rent) from the property over which the LPA receiver has been appointed. An LPA receiver does not have power to sell the property.

Since the powers provided in LPA 1925 are so limited, it is usual for a security document to specifically include a provision permitting the security holder to appoint a receiver in the circumstances specified in the security document, and for the security document to provide that the receiver has more extensive powers than those provided under LPA 1925, such a power to sell the relevant property. Some of the provisions of LPA 1925 may also be excluded or varied in the security document. A receiver appointed pursuant to powers in the security

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

The person a mortgage is granted to.

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