- What is this Law of Property Act 1925?
- Why was the Law of Property Act 1925 created?
- Was the law created for property owners or for the bank?
So the Law of Property at 1925 has been set up primarily to protect the interests of the bank as it allows a bank if mortgage terms are broken or have been breached in some way, the bank can immediately appoint LPA receivers who will have the power of sale of the property, to take control of the property and it’s rent.
The way the law has been written, the agents appointed to act as LPA receivers typically tend to be a law firm, estate agency or insolvency practitioner. The appointed agent will have the ability to go in and have the power sale and to collect rent. But technically, by the way it’s written is that these organizations are meant to be looking after the interest of the borrower as the appointed LPA receiver should act as the agent for the borrower. So, it’s easily contradictory in terms of what it says and how it’s actually implemented.
There’s little precedence in terms of anybody really go to court and fighting the Law of Property Act 1925 and putting down certain rules or limitations in terms of how it can be applied for the betterment of little landlords. It’s actually continued to be applied in quite a draconian way, which allows the benefit of the bank as opposed to the benefit of the borrower.
Are the LPA receivers a bit like Matt Damon?
LPA receivers are the agents that will act on your behalf and literally have unlimited rights in terms of what they do. Because the way the Law of Property Act 1925 is written, there isn’t enough precedence to uphold the borrower’s right at the moment, because a lot of these cases are literally wiped under the carpet type situation that would mean any precedents would mean that the banks would find difficulty in repossessing properties as easily.
- What is it that we do for people who got new build properties?
- If they are being used as commercial entities, what does our organization do to help to help fight off Matt Damon?
Depends how you look at it, but it’s quite simple. What we do is we go in and look at how the Law of Property Act 1925 has been applied, whether the act has been applied properly and whether they’ve actually followed the right protocols. The property owner sometimes isn’t made aware that the LPA receivers are going to get appointed. So that’s quite an interesting aspect of really what’s done. The other thing is that there’s lots of technical areas which we specialize in here is that some of the paperwork/contracts may not be complete. It’s not the right paperwork that they’ve used to take control over the properties. So sometimes the paperwork is flawed. And then in terms of the type of notices.
What do you do for clients?
What we do is we look at do an assessment of what’s happened and see if there’s a way of dis-instructing the LPA receivers.
