A Practical Guide to Property Receivership

Secured lenders have a number of powerful tools at their disposal when faced with a defaulting borrower. The appointment of receivers under the Law of Property Act 1925 or a fixed charge is a commonly used option. However, the extensive powers of receivers are widely misunderstood. Receivers may be appointed under the Law of Property Act 1925 or under powers contained within a fixed legal charge and there are important differences depending on which type of appointment is made. In the property context, retail mortgage lenders will commonly take direct action to repossess owner-occupied property. However, when the secured property is a residential buy-to-let property, mixed use or commercial property, secured lenders will often choose to appoint property receivers. This practitioner text seeks to provide practical guidance to those conducting, facing or otherwise affected by property receivership. It simplifies the key legal concepts and offers practical day-to-day guidance on property receivership including: borrower default, the appointment of receivers, the discharge of the receiver’s duties, sale and asset realisation, redemption and termination. It also summarises the common challenges advanced by borrowers or third parties. The text will empower practitioners to effectively conduct or engage with receivership cases, whether acting for receivers, lenders or other parties affected by receivership. ‘Thomas Lillie’s work marries together law and practicality which is so essential to receiver and lawyer alike, but all in an entirely approachable style. Fully cross-referenced, this work is essential reading and a daily support for all lawyers, surveyors and insolvency practitioners who aspire to work in this specialist area.” – Julian Healey, CEO of NARA: the Association of Property & Fixed Charge Receivers ABOUT THE AUTHOR Thomas Lillie is an experienced solicitor specialising in financial services disputes. His practice includes advising secured lenders, receivers and other creditors on a range of contentious issues, with a particular focus on receivership and litigation arising out of secured lending. CONTENTS Chapter One – Pre-Appointment Chapter Two – Appointment Chapter Three – Powers Chapter Four – Duties Chapter Five – Possession Chapter Six – Sale Chapter Seven – Challenges And Litigation Chapter Eight – Ending the Receivership