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LPA Receiver
An LPA receiver is a property manager appointed by a lender under a fixed charge to take control of mortgaged property in the event that a borrower is in default of their mortgage terms.
In straightforward cases involving residential property occupied by the borrower, the bank is more likely to repossess and to use its power of sale. However, in the context of investment property and or more complex properties, a bank will often not want to take on the risk and cost of day-to-day management of the property including having to deal directly with occupants, outstanding problems, insurance and repairs. In such cases the appointment of an LPA Receiver is seen as a quick and effective solution.
The role of the LPA Receiver is to focus on recovering the debt owed to the lender. This involves taking control of the property and, effectively, standing in the shoes of the owner. LPA Receivers collect (ie receive) monies from rents to repay the debt. In many cases the LPA Receiver is tasked with arranging an early sale of the property in order to repay the loan.
Orion can act as an LPA Receiver. Our approach is to be proactive and not simply desk based and relying on third party agents. We are independent and we will ensure that the correct path is chosen for each individual property, case and the specific difficulties that the lender is experiencing with that property.
If just selling the asset will not repay the loan in full Orion will explore all possible avenues to add value. This could be achieved securing new tenants, obtaining vacant possession, re-gearing leases, applying for change of use or applying for planning consent, carrying out small or large developments or simple refurbishments. As we are flexible and independent we will ensure that where disposal is the correct recovery strategy then we will find the best and appropriate method of sale.
