Dear Property Doctor,

How Do I Get Rid Of LPA Receivers?

This is a really difficult situation LPA receivers (LAND & PROPERTY ACT) are appointed usually by lenders when a mortgage is in arrears. Receivers have the power to collect rents from tenants and ultimately can sell the property on behalf of the lender. Lenders will usually appoint receivers when a buy to let mortgage is in arrears by more than 2 months. All lenders have different criteria and some are more sympathetic than others.

It’s always vital to communicate with lenders if you are struggling paying the mortgage as usually there is some sort of compromise that can be reached. Lenders don’t instruct receivers out of spite its a policy decision and can be very expensive for lenders.

If the property is then repossessed and sold at a loss the owner of the property will be expected to make up the shortfall which can be substantial once costs are added and if the property has been sold at an auction.

Its important to try and avoid lenders appoint receivers in the first place. If they have been appointed lenders will usually expect the account to be brought up to date before they relinquish the receivers control.