Lenders, charge holders and borrowers
Property Receivership.
Practical property recovery focused on speed, cooperation and protecting value. We advise lenders before any appointment is made, explore voluntary routes where they are commercially sensible, and accept formal receivership appointments where they are necessary. Charles and Arabella Ranby-Gorwood are both licensed Insolvency Practitioners and receivers; the property work is led by Arabella.
Property recovery built around the asset
Receivership is not a mechanical route to possession and sale, and treating it that way regularly costs lenders money. Before recommending anything we look at the condition and potential of the property, the security and debt position, occupation and tenancy issues, planning and development status, Building Control and warranty matters, holding costs and continuing interest, whether refinancing or investment is realistic, whether cooperation with the borrower would produce a better result, and whether targeted work would improve value or saleability. Each option carries cost, risk and delay, and those are weighed openly. Value-enhancement work is only recommended where its likely benefit justifies all three.
Receivers who are also Insolvency Practitioners
A fixed-charge or LPA receiver does not have to be a licensed Insolvency Practitioner, and many are not. Charles and Arabella are both licensed Insolvency Practitioners and receivers. Receivership is therefore one of several appointments available to us, rather than the only one — and that changes the advice you get before anything is decided.
- Administration and liquidation carry investigation powers a receivership does not. Where something needs examining — asset movements, antecedent transactions, the conduct of those running the company — those are the instruments that reach it. A receivership is confined to the charged property.
- Bankruptcy appointments matter where personal guarantees are in play. Recovering against a guarantor is a different exercise from realising the security, and it can run alongside.
- The charged property is not always where the whole answer sits. Where value, or the problem, lies outside the security, a receivership on its own will not reach it.
Because any of these appointments is open to us, we have no reason to recommend one over another except that it is the right one. And once it is decided, the same people carry it through: you are not passed to another firm at the point a matter turns out to need more than a receiver.
What Property Receivership is
A fixed-charge receiver may be appointed by a secured lender over charged property. The appointment relates to the secured asset rather than automatically taking control of the borrower’s whole business — which is what makes it a focused and often cost-effective recovery route.
- The receiver’s powers depend on the security documentation and the applicable law
- Powers may include collecting rent, managing, protecting and selling the property
- Agency depends on the appointment: an LPA receiver, though appointed by the lender, generally acts as agent of the borrower, whereas a receiver appointed under a power in the mortgage deed is generally agent of the lender unless the deed provides otherwise
- The scope is the charged property, not the company’s affairs generally
LPA receivers and fixed-charge receivers
Both terms describe an appointment over specific charged property rather than over a company. “LPA receiver” means an appointment made under the Law of Property Act 1925. “Fixed-charge receiver” is the broader term for an appointment over identified charged property, whether under that Act or under wider powers written into the security. In everyday use the two are often used interchangeably, and what governs any particular appointment is what the security documents actually permit.
The distinction that matters in practice is agency, and it is the most misunderstood point in receivership.
- A receiver appointed under the Law of Property Act 1925 is appointed by the lender but generally acts as agent of the borrower — so the borrower is generally responsible for the receiver’s acts or defaults, unless the mortgage deed says otherwise
- A receiver appointed under an express power in the mortgage deed is generally agent of the lender, unless that deed provides otherwise
- HM Land Registry itself describes this as a difficult area of law, and legal advice should sit alongside any appointment
We accept both LPA and fixed-charge appointments, and will say plainly where the security does not support the appointment a lender has in mind. It is the reason the security is the first thing we read.
For lenders and charge holders
The full range runs from advice before any appointment through to completed sale, and we will tell you where on that range your situation actually sits.
- Pre-appointment reviews and security assessment
- Property assessment, and borrower engagement
- Recovery strategy, with the options costed
- Fixed-charge or LPA receivership appointments
- Possession where it becomes necessary
- Property management and rent collection
- Development completion, where the numbers support it
- Targeted value-enhancement work
- Marketing and sale, with agents chosen for the asset
- Clear reporting and cost monitoring throughout
From a lender we act for
“We have been using CRG for a number of years now and have to say we have been most impressed by the consistency of their performance – the service you receive at the beginning of the relationship is the same service you receive 3 years down the line – efficient, knowledgeable and professional.”
A nationwide secured lending company
For borrowers and property owners
If you are in default, or heading that way, early advice generally creates more options than late advice does.
- Early advice following a default or an expired facility
- Understanding what the lender is actually worried about
- Preparing a credible proposal rather than a hopeful one
- Refinancing or new investment
- Consensual property sales
- Resolving planning or compliance problems
- Agreeing realistic milestones — and meeting them
- Communicating with the lender before the position deteriorates
A note on conflicts
We can act for lenders and we can advise borrowers, but not both on the same matter where their interests conflict. Before taking any instruction we complete conflict and appointment checks and confirm in writing who we act for and in what capacity. If we cannot act, we will say so quickly and, where we can, point you to someone who can.
The CRG Property Recovery Review
A defined pre-appointment service for lenders. Before any receiver is appointed, we will review the property and the available security information, work with your solicitors on appointment considerations, assess value and the realistic realisation strategies, review planning and development status, consider occupation and tenancy issues, identify urgent insurance, security or compliance risks, estimate holding and enforcement costs, assess the prospects of a voluntary resolution, compare receivership against administration or another procedure, and recommend next steps with an indicative timetable. Scope is agreed for each instruction, and legal advice may be needed alongside it.
Valuation and monitoring, with surveyors
For lenders and charge holders. A recovery strategy is only as good as the valuation underneath it, and a distressed asset is rarely worth what the original facility assumed. We can instruct chartered surveyors ourselves, or work with a valuer from your own panel — whichever fits how you are set up.
Where works are underway, part-complete or proposed, a monitoring surveyor can confirm what has actually been built against what was drawn and paid for, price what remains, and report on progress while it is carried out. On a part-completed development that is usually the single most important piece of information, because it decides whether finishing the scheme recovers more than selling it as it stands.
- Red Book valuations, reflecting the asset’s present condition rather than the figure on the original facility
- Valuations arranged through your own panel, a managed panel, or surveyors we instruct directly
- Costing of outstanding works, and what is realistically required to finish
- Monitoring surveyors, with progress reporting while works are carried out
- Reinstatement and insurance considerations where cover is inadequate or has lapsed
The measure throughout is net recovery to the lender, not headline value. Where a surveyor’s view is that works will not pay for themselves, that is what we report.
Protecting and improving value
An immediate sale in the property’s current condition is not always the best commercial answer. Depending on the asset, it may be worth obtaining missing Building Control sign-off, resolving warranty or certification issues, seeking or varying planning permission, completing proportionate works, clearing and securing a site, carrying out essential repairs, improving presentation, resolving access, title or boundary matters with solicitors, reviewing tenancy or occupation issues, stabilising rental income, considering alternative uses, or deciding whether an asset sells better individually or within a portfolio.
- We cannot promise that planning permission, warranties or Building Control approval can be obtained — only that we will establish whether they realistically can
- The measure is net recovery, not headline sale price
- Agents are selected for relevant specialist experience, not convenience
- Marketing is targeted at the buyers who actually exist for that asset
Why speed matters — and where it does not
Every day carries continuing interest, insurance, security, utilities, rates and service charges, professional costs, property deterioration, lost rental income, delayed development and market movement. That is a real cost and it is why we move quickly on protection and decision-making. But a rushed sale where a proportionate intervention would have produced a materially better net result is also a loss, just a less visible one. Speed matters, and so does choosing the right route.
Voluntary resolutions before enforcement
Where it is commercially sensible we look for cooperation first — agreed refinancing, new investment, a structured repayment, consensual marketing and sale, completion of defined works, voluntary possession, agreed access, or a monitored exit strategy. Done properly this can reduce delay, legal and possession costs, uncertainty, damage to the property and disruption to occupants or tenants. It is not always available: the lender decides whether to enforce, not the borrower, and a voluntary route only holds while milestones are actually met.
Possession, where it becomes necessary
Possession may be required where the property cannot be accessed or secured, cooperation has broken down, agreed milestones are missed, occupation is unlawful or obstructive, the asset or the lender’s position is at risk, or a voluntary solution is no longer credible. We work with solicitors to pursue possession where it is needed — we are insolvency practitioners rather than a law firm — but we aim for voluntary cooperation wherever that is likely to be faster, cheaper and more certain.
Talk to the lender before the position deteriorates
For borrowers: do not ignore missed payments, an expired facility, covenant breaches, requests for financial information, valuation concerns, development delays, planning problems, rising interest or a formal demand. Arrive with a clear explanation of the problem, current financial information, a realistic repayment or exit proposal, evidence of any refinancing or investor discussions, a timetable for sale or completion, and honest information about the property including its problems. Early communication does not guarantee that enforcement is avoided — but it usually creates more options than silence.
Property types we consider
Assignments across residential property, buy-to-let portfolios, commercial property, mixed-use developments, development land, part-completed developments, hotels and leisure assets, industrial property, agricultural and rural property, houses in multiple occupation, and specialist or unusual assets. Where an asset needs sector expertise we do not have, we bring in someone who does rather than learning at the lender’s expense.
Our advice is driven by the best available outcome — not by the need to secure an appointment.
How we work
Five stages, in this order
01
Understand
The debt, the security, the property, occupancy, planning position and the risks that need attention first.
02
Protect
Insurance, access, security, utilities, safety and anything actively deteriorating.
03
Explore
Cooperation, refinancing, investment, restructuring or a consensual sale — before enforcement is assumed.
04
Improve
Whether targeted work would enhance value, certainty or saleability by more than it costs in money, risk and time.
05
Recover
Implementing the chosen strategy: income collection, sale, possession or formal receivership.
Choosing between them
Receivership or Administration?
Receivership is focused on charged property. Administration concerns the company and its affairs more widely. Which is appropriate depends on the security, the borrower, the property and the outcome you are aiming at.
| Issue | Property receivership | Administration |
|---|---|---|
| Scope of appointment | The charged property | The company, its affairs, business and property |
| Who appoints | The secured lender, under the LPA or the security | The company, its directors, a qualifying floating charge holder, or the court |
| Assets controlled | Only the asset within the charge | All of the company’s assets |
| Cost and complexity | Generally lower and more contained | Higher, with statutory reporting and creditor processes |
| Effect on the wider company | Limited — the company continues to exist and trade elsewhere | Company-wide; a statutory moratorium applies |
| Management of the business | Not managed by the receiver; the focus is the asset | The administrator takes over management |
| Suitable circumstances | Where the value and the problem both sit in the charged property | Where the company or its business needs protection or a sale |
| Exit routes | Sale or realisation of the asset, or redemption of the debt | Rescue, a CVA, liquidation, dissolution or another statutory exit |
Case examples
Three situations, to be written up
These are the three case types we intend to publish here. Nothing is written up yet — no figures or outcomes have been invented, and nothing will appear until a client has approved the wording.
Awaiting approval
Compliance resolved before sale
A property where missing Building Control sign-off or a warranty issue was resolved before marketing, changing the pool of available buyers.
Awaiting approval
Targeted works improving recovery
A part-completed development where a defined, funded programme of works produced a materially better net result than an immediate sale.
Awaiting approval
A borrower-led voluntary resolution
A default resolved consensually — refinancing or an agreed sale — without possession proceedings.
Lead practitioner
Arabella Ranby-Gorwood — property specialist and receiver
A licensed insolvency practitioner and experienced property receiver, specialising in receiverships, administrations and distressed developments. She works with lenders, creditors, borrowers, investors, agents and solicitors, and has been involved in recovering more than £150 million of distressed and non-performing debt. IPA Rising Star of the Year 2022, and Chair of the IPA Rising Professionals Network.
Or call 01472 250001 and ask for Arabella directly.
Questions
Questions we are asked most
What is property receivership, and what is an LPA or fixed-charge receiver?
A secured lender appoints a receiver over charged property to collect income from it, manage and protect it, and where appropriate sell it. “LPA receiver” refers to an appointment made under the Law of Property Act 1925; “fixed-charge receiver” is the more general term for an appointment over specific charged property, whether under the Act or under wider contractual powers in the security. In practice the terms are often used interchangeably, and what matters is what the security documents actually permit.
Is a receiver appointed over the property or the whole company?
Over the charged property. That is the central difference from administration: a receivership is asset-focused and does not automatically take control of the borrower’s wider business or affairs. Where the company itself is the problem rather than the property, administration or another procedure may be the better instrument.
Does the receiver act for the lender or the borrower?
This is the most misunderstood point in receivership, and the answer depends on how the appointment is made. A receiver appointed under the Law of Property Act 1925 is appointed by the lender but generally acts as agent of the borrower — with the consequence that the borrower is generally responsible for the receiver’s acts or defaults unless the mortgage deed says otherwise. A receiver appointed under an express power in the mortgage deed is generally agent of the lender, unless that deed provides otherwise. The terms of the security therefore determine the position, and HM Land Registry itself describes this as a difficult area of law. Legal advice should sit alongside any appointment.
What powers does a receiver have?
Whatever the security documentation and the applicable law confer. Commonly that includes collecting rent, managing and protecting the property, insuring it, granting or ending occupation arrangements in defined circumstances, carrying out works, and selling the asset. The powers are not uniform across appointments, which is why the security is reviewed before anything else.
Can a receiver obtain planning permission or complete development works?
It may be possible, and on part-completed schemes it is often the question that decides the recovery. Whether it is appropriate depends on the powers in the security, the funding available to do the work, and whether the likely uplift justifies the cost, risk and delay. Nobody can promise that permission or approval will be granted.
Can CRG advise before an appointment is made?
Yes, and we would encourage it. The Property Recovery Review is designed for exactly that point: reviewing the property and security, assessing realistic realisation strategies, identifying urgent risks, estimating holding and enforcement costs, testing the prospects of a voluntary resolution, and comparing receivership with the alternatives. Sometimes the conclusion is that no appointment is needed.
Does a lender always need to appoint a receiver?
No. Where a borrower is engaging credibly, a refinancing, a consensual sale or a structured repayment may produce a better net result with less cost and delay. The appointment is a tool, not an outcome, and it should be used where it is the right one.
Can receivership be avoided through cooperation?
Sometimes, and it is worth trying where the borrower is genuinely engaging and the numbers work. But the lender decides whether to enforce, cooperation has to be evidenced rather than promised, and a voluntary route only survives while agreed milestones are actually met.
What happens if the borrower will not cooperate?
Then the position moves towards possession, and the practical questions become access, security, insurance and preventing deterioration. We work with solicitors on possession where it is necessary. Obstruction rarely improves a borrower’s position — it usually increases the costs that come out of the eventual sale proceeds.
How long does a receivership take, and what does it cost?
Both depend on the asset, its condition, occupation, planning status, whether works are needed and how the market responds — so we will not quote a standard period or fee for an asset we have not seen. What we will do is give you an indicative timetable and cost estimate as part of the review, and report against them as matters progress. Receivers’ remuneration is dealt with in accordance with the security documentation and applicable law, and is set out clearly at the outset.
What happens to tenants and rental income?
Existing occupation has to be established as a matter of fact and of law before anything else, because it affects both value and strategy. Where there are lawful tenancies, rent may be collected by the receiver and applied in accordance with the security and applicable law. Stabilising reliable rental income is often one of the quickest ways to improve a recovery.
What is the difference between receivership and administration?
Receivership is appointed by a secured creditor over charged property, is focused on that asset, and is generally cheaper and quicker. Administration is a company procedure: an administrator takes control of the company’s affairs, business and property, a statutory moratorium applies, and the duties run to creditors as a whole. Which is appropriate depends on the security, the borrower, the property and the intended outcome.
Can a receiver be appointed if the borrower is an individual, or over a portfolio?
Yes to both, subject to the security. Fixed-charge appointments are common over property owned personally as well as by companies, and portfolio appointments are routine — with the added question of whether assets realise better individually or as a block.
What happens if there are several secured lenders?
Priority and the terms of any intercreditor arrangements become central, and they need reviewing before an appointment rather than afterwards. It is one of the situations where a pre-appointment review earns its cost most clearly.
Can CRG advise borrowers as well as lenders?
We act for both, but never on the same matter where interests conflict. Before taking any instruction we complete conflict and appointment checks and confirm in writing who we act for and in what capacity. If we cannot act for you, we will tell you promptly.
Related
Where a corporate structure sits above the security.
Where the borrower’s business is the underlying issue.
Where the numbers need independent examination.
For borrowers unsure where their company stands.
Next step
You do not need to know which procedure applies before you call.
The initial conversation is confidential, free of charge, and commits you to nothing.