Law of Property Act 1925 Receiver
Contents |
[edit] Introduction
A Law of Property Act 1925 Receiver (LPA Receiver) may be appointed under the terms of the Law of Property Act 1925 to take charge of a mortgaged property when the borrower is in default. The purpose of this is to take control of the property with a view to either selling it to recover the outstanding debt, or to collect rental income for the lender.
[edit] Direct powers
Under the 1925 Act the direct powers of a LPA Receiver are:
- To demand and recover all income due on the property to which they are appointed receiver. Such recovery can be by action, distress or any other means.
- If directed to do so, to insure (and keep insured) the property against loss or fire damage. Premiums incurred can be paid from sums collected.
[edit] Delegated powers
The lender can delegate its contractual powers to the receiver under S 109(3) of the 1925 Act. This must be done in writing.
Such contractual powers are:
- The power to sell the mortgaged property on terms that the receiver sees fit.
- The power, once in the lender’s possession, to cut and sell timber after consulting with an arboriculturalist.
- The power to make leases.
[edit] Insurance
The lender can demand that all monies received in connection with insurance of the mortgaged property be applied either towards the discharge of the mortgage balance or to recoup monies, loss or damage to which the funds relate.
[edit] LPA Receiver’s remuneration
The receiver is entitled to retain from monies received up to 5% unless specified otherwise.
[edit] Application to the Court for directions
The LPA Receiver or lender can apply to the Court on matters of uncertainty relating to the appointment, powers or remuneration.
[edit] Related articles on Designing Buildings
[edit] External references
Featured articles and news
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
The Grenfell Tower fire, eight years on
A time to pause and reflect as Dubai tower block fire reported just before anniversary.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.
Construction contract awards hit lowest point of 2025
Plummeting for second consecutive month, intensifying concerns for housing and infrastructure goals.
Understanding Mental Health in the Built Environment 2025
Examining the state of mental health in construction, shedding light on levels of stress, anxiety and depression.
The benefits of engaging with insulation manufacturers
When considering ground floor constructions.
Lighting Industry endorses Blueprint for Electrification
The Lighting Industry Association fully supports the ECA Blueprint as a timely, urgent call to action.