Residential LPA Receivership
Under the Law of Property Act 1925, the receiver will have the power to sell residential property and collect rent on behalf of the lender, if the property owner falls into payment default.
It is Soloman Asset Management’s job to find a careful and well balanced solution for everyone involved.
We are here to take control of difficult situations that arise when it comes to a residential receivership. We will make recommendations and offer you advice and support.
Our Service for Residential LPA Receivership
Lenders
We are very aware of the potential complexities when it comes to mortgage or loan defaults. Our team our experienced property specialists with a wealth of knowledge dealing with lenders when it comes to property receivership. An example of what you will receive if yo choose to work with us is below:
- We are compliant
- We can demonstrate high quality case management
- Timely management information delivered to you
- Vulnerable customer management
- Appropriate exit strategies
- Robust processes
- Knowledgeable team
- Clear advice
Customers
How will the process start?
The receivership process will begin after a lender sends an appointment letter to the party that owns the lender money.
Under the Law of Property Act when money for a mortgage or loan has become overdue the lender will then have the right to begin to appoint a receiver in an attempt to recover the monies.
As a customer, can I sell the property?
If you plan to sell the property, it is really important that this is communicated to us here at Soloman Asset Management and also to the mortgage lender. If this is done then we are able to advise on the best options and find a solution.
Tenants
If your landlord has gone into receivership, you may be wondering what will happen to you if you are a tenant living in the property.
Below are some of our frequently asked questions when it comes to landlords and tenants in the case of a residential receivership:
If I pay my rent to the receiver, can my landlord say that I have not paid the rent?
Once you pay the receiver the rent that means you have met your obligations to pay that rent under your lease.
The receiver will give you a receipt for the rent and it is important you keep the receipt.
Once you produce a receipt, your landlord cannot pursue you for the rent you have paid to the receiver.
Can the receiver use his powers under the mortgage to terminate my lease?
Normally, the receiver can only terminate your lease in the same circumstances as your landlord can.
For example, if the receiver wishes to do this he or she must give you advance notice and the length of that notice
must meet the standards set out in your lease and in the Residential Tenancies Act.
However, in certain exceptional circumstances, the law gives the bank additional powers to terminate a lease.
For example, a bank can ask a court to terminate a lease if it proves it was put in place without the bank’s consent and that it reduces
the value of the bank’s security.
Also, the bank can disregard a lease where it requires the tenant only to pay a rent which is well below market value, or if it contains other terms that would not make good commercial sense
for the landlord.
Compliance
At Soloman Asset Management, we act for a number of parties all of whom will have different requirements and legislation that we will have to adhere to. An example of these are:
- Major high street lenders
- Mortgage service providers
- Short term lenders
We are compliant with RICS.