The Law of Property Act 1925 was all about making it easier to buy sell and otherwise transfer land and property from one person to another. It’s best known for having introduced many of the core principles of conveyancing, and remains at the heart of modern property transfer processes. The act allows for the lender (the mortgage company) to appoint an ‘LPA receiver’ who once appointed, have the power of sale, the power to collect rents from tenants and potentially change the locks of the property. Once they’re appointed, it’s very difficult to get them off.
To answer the above question, we’re not suggesting that you buy from LPA receivers. We’re just saying that a lot of LPA receivers are actually repossessing properties and selling properties by the dozen. So there are a couple of angles to that. If you’re talking to us as an organization, we usually assist landlords to sell their assets before the receivers take properties over. But there’s equally an opportunity for buyers to buy properties from receivers themselves because they’re getting a lot of distressed properties. So there’s an opportunity for anybody who’s a property investor who understands the mechanics of how receivers work to take advantage of that.
- So because our organizations were the leading specialists in dis-instructing LPA receivers, one of the first points, of course, is actually talking to Lakhi Singh the property fixer to find out what type of properties you’re interested in buying. So when they come up, we could possibly negotiate them to buyers before they go to receivers.
- The other angle is that once receivers are already appointed and a client approaches us, then we also have the expertise to dis-instruct the receivers.
- The third situation is that if the property is already about to go into auction and the receivers have already taken control of the property and tenants; there’s an opportunity in that instance, to go directly to receivers as well and pick up property.
So in all three instances, there’s an opportunity there which is not really known in the marketplace as a phenomena, but it is something of a phenomena.