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Welcome to Blogs of Immediate Bank Claims

Moving on to the topic for today, which is ‘What’s the difference between home repossession and the appointment of an LPA receiver’?

So it’s very important to understand how a lot of people who have been affected by sometimes very shocked and bewildered. There is a difference between the two and it is important that you are able to distinguish between them.

“A home repossession is when you’re a lender bank is looking to take possession of your property which is the one you live in otherwise known as your residential property.

Home repossessions is a much longer process as the lender bank will have to make an application to court to be granted permission to repossess a property and if required, apply for bailiffs to evict the occupier.

“An LPA receiver appointment is when the borrower is in breach of their loan terms agreement for a commercial property such as a Buy to let property and subject to the Law of property act 1925, the lender bank decides to appoint a fixed charge receiver or an LPA receiver to take possession of the property.

This is a more aggressive and expedient process as because depending on the LPA receiver, once appointed, they have the power to take possession of the property immediately and change the locks of the property, collect rents from the tenants or even sell the property.

Home repossession are slightly easier to deal with and for many reasons such as the property being a residential property and the banks as well as the courts morally don’t want to evict the occupier from the property and make them homeless as well as the process is a lot more lengthy (Factor in Covid-19 and the large pile up of court applications further delaying the process) you are given more time to either a) raise finance to exit the current lender bank or b) sell the property. On the other hand once LPA receivers are appointed, they can be unpredictable on how quickly they act and no one in the market really has the expertise to deal with and dis-instruct the receivers. But that’s where we come in to save the day!

We speacilise in dealing with all sorts of repossession issues and we are also the leading experts in the dis-instruction of LPA receivers. To find out more about our works please do get in touch with us as we offer a free 1 hour consultation.