Fixed Charge Receivers FAQs
What is a Property Receiver?
A property receiver is a receiver appointed by a lender over a property, rather than a business, where the mortgage has gone into default.
Such an appointment is a relatively cost effective and straight forward option. It is open to lenders under legislation and the mortgage deed.
A property receiver is not required to be licensed and chartered surveyors are increasingly appointed in this capacity in Ireland. Such appointments have been common place in the UK for many years.
A property receiver can also be referred to as a Fixed Charge Receiver. This title highlights the fact that they are appointed over fixed assets only. Lisney Property Receivers will not act as a receiver over a company, and will not carry on a business.
Why appoint a surveyor as a property receiver?
An experienced surveyor is the best qualified as they have the necessary specialised skills and the experience to ensure maximum return and minimal loss.
Who appoints a Property Receiver?
The lender appoints a property receiver over the mortgaged property. NAMA may appoint a statutory receiver and such a receiver is not bound by normal restrictions.
What is the relevant legislation?
The relevant legislation is within the Conveyancing Act 1881, and the Land and Conveyancing Law Reform Act 2009. NAMA has the powers to appoint a statutory receiver under the National Asset Management Agency Act 2009. There are wide spread powers under this NAMA Act.
What are the powers of a property receiver?
These are usually set out in the mortgage deed under which the receiver is appointed. Generally a property receiver has the power to manage the property, collect rent and arrange a sale.
What is the duty of a property receiver?
The primary duty of a property receiver is to the lender who makes the appointment. He also has a duty of care to the borrower, any guarantor of the debt and any secured lender. The receiver must act in good faith, take reasonable precautions and exercise due diligence in the sale process.
The property receiver does not have to immediately sell the asset. The duty of the property receiver is to ensure that the debt is serviced, interest is paid, and to endeavour to see repayment of the debt. An effective property receiver does considerably more than collect rent and manage the property. He actively enhances the property where possible.
How does a Lisney Property Receiver work?
Firstly, the receiver takes control of the property asset and secures it. Subsequently, our multi-sectoral team of property experts will advise on the best work-out solution. We will actively manage the asset, collect rent, and deal with tenants, rent reviews, repairs, insurance cover and the maintenance programme. When it is financially most advantageous, the receiver will arrange a sale of the asset.
How is a Lisney property receiver a more cost effective option?
Appointing an experienced chartered surveyor as a property receiver means that the property assets are managed by property experts without the need for another practitioner to act as conduit and thus a second layer of fees is avoided.