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 Law of Property Act 1925 (LPA 1925) enables a mortgagee of a legal mortgage to appoint an LPA receiver:
when the mortgage moneys become due, and
after making a demand for payment under the terms of the mortgage
This right may alternatively (and more usually will) arise under the terms of the charge. In both cases the receiver may be referred to as a fixed charge receiver (in the latter case the receiver is not an LPA receiver, but in practice is often still referred to by this name).
The LPA 1925 sets out the basis upon which an LPA/fixed charge receiver is entitled to be remunerated; however it is unusual to rely on these provisions, as the fees are usually agreed between the appointor and the LPA/fixed charge receiver directly.
In addition, an LPA/fixed charge receiver shall be entitled to retain, out of any money received, remuneration and payment of all costs, charges and expenses incurred by the LPA/fixed charge receiver, as long as these do not exceed 5% of all monies received as specified in the appointment documents or, if no rate is specified, 5% of the gross amount, or at such rate as the court may allow on application.
An LPA/fixed charge receiver should identify at an early
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