LPA receiverships on the rise, says Scanlan

A MANCHESTER-based surveying practice has said that the property market is showing few signs of recovery as the number of instructions they are receiving as Law of Property Act receivers continues to rise.

The firm said that it is currently working on instructions from 21 lenders including high street banks and building societies on a portfolio of properties worth more than £55m.

“We have been receiving a significant number of Law of Property Act (LPA) Receivership instruction since the recession took hold and there is little sign of this letting up,” said Neil Inman, who heads Scanlans’ receivership and restructuring team.

The firm said that a majority of the instructions are for commercial properties but it is also working on a number of buy-to-let residential portfolios and industrial units.

Inman argued out that lenders nearly always benefit by appointing an LPA Receiver rather than an insolvency practitioner when a company’s sole asset is its property. He said that LPA Receivers are usually better equipped to carry out management functions during receivership to ensure rents continue to be collected and mortgages are protected.

“It’s much more effective for the lender to appoint an LPA Receiver direct who has a broader range of professional disciplines and experience of dealing with planning, building issues, valuations, landlord and tenant matters, NHBC accreditation and compliance.”