Law of Property Act and Fixed Charge Receivers may be appointed by a lender with a mortgage, charge or other security over real property or other specified assets. Under the terms of the Legal Charge the lender can appoint a Receiver to deal with a property when the terms of the mortgage are not being met – usually when repayments and interest are not being paid.
We work with lenders and review each case and consider the appropriateness of appointment. We understand that fees on such appointments need to be determined on a case by case basis. In reviewing this may highlight issues not previously recognised by a lender that may effect how a property can be dealt with. Validity of charges, details of planning permissions and other licensing is often examined prior to an appointment.
The appointment is quick and fairly inexpensive. The receiver generally has broad powers to realise assets and, in respect of real property, collect rent. PKF are members of and comply with the voluntary code of NARA (the Association of Property and Fixed Charge Receivers).
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