Restriction on the Appointment of Law of Property Act Receivers under Fixed Charges

The Law of Property Act 1925 provides that if the mortgagor (ie your company) is in liquidation then the courts permission is required before a Law of Property Act  (LPA) Receiver can be appointed.

If your company is already in Administration, no steps can be taken to enforce any security over the company's property (such as the appointment of a Law of Property Act Receiver) except with the leave (permission) of the court.

Existing receivers may remain in office but may not realise security without court permission.

For more information on receivers appointed under fixed charges or for a FREE INITIAL MEETING please contact Ray Purnell