What is an LPA receiver?
A receiver appointed under the Law of Property Act 1925 (commonly called an "LPA receiver" or "fixed charge receiver") is a person appointed by the holder of a mortgage or charge over property, usually where the mortgage terms and the statutory power of sale allow it. The receiver's role typically concerns the income and, where the appointment permits, the disposal of the charged property.
A distinctive feature of the arrangement is that, under section 109(2) of the Law of Property Act 1925, the receiver is generally deemed to be the agent of the borrower rather than of the lender, unless the mortgage deed provides otherwise. This is why questions about who is responsible for a receiver's actions and costs arise so often in complaints.
How is this different from possession proceedings?
Possession proceedings are court proceedings in which a lender asks the court for an order for possession of the property. A receiver appointment is not a court process: it is made under the mortgage deed and the statutory framework, without an application to a court. The two routes have different procedures, different protections and different costs consequences. Receiver appointment is most commonly encountered in relation to buy-to-let and other investment property.
Statutory framework
- Law of Property Act 1925, sections 101, 103, 109 — powers to appoint a receiver, the receiver's powers, and the deemed agency of the borrower.
- The mortgage deed and the mortgage conditions, which may extend or vary those statutory powers.
- FCA rules in MCOB, which apply to regulated mortgage contracts. Many buy-to-let mortgages are not regulated mortgage contracts, which affects what protections apply.
Law of Property Act 1925, section 109 (legislation.gov.uk)
Why borrowers may encounter receiver costs
Where a receiver is appointed, the receiver's fees and the associated professional costs are commonly charged to the mortgage account under the mortgage conditions and the lender's tariff of charges. Published complaints in this area frequently concern the amount of those costs, the breakdown provided, and whether interest has been applied to them. This archive records what published decisions say about such complaints; it does not state a general legal answer.
Steps documented before a receiver appointment
Where a published decision sets out the sequence of events, the archive records the steps that the source supports, drawn from this template. A step is only shown on a record where the source records it.
- Contact with the borrower
- Request for financial information
- Request for property information
- Formal demand
- Solicitor involvement
- Receiver instruction
- Receiver appointment
- Property management or sale