Mortgage & Finance Law

LPA Receiver UK — Law of Property Act 1925 Receiver and Buy-to-Let Landlords

An LPA receiver (Law of Property Act receiver or fixed charge receiver) is a property professional appointed by a mortgagee (lender) under LPA 1925 ss.101–109 without a court order when a borrower defaults on a mortgage. The receiver is deemed by statute to be the agent of the mortgagor (LPA 1925 s.109(2)) — meaning the lender is not liable for the receiver's acts. Statutory powers (s.109(3)): collect rents and income; grant/accept surrender of leases up to 21 years; insure; repair — usually supplemented by express contractual powers. Power arises when: mortgage is by deed; mortgage money is due; and the power is exercisable (s.103): one month's notice served; or interest is two months in arrears; or another mortgage covenant is in breach. Impact on existing tenancies: existing ASTs and tenancy agreements continue and bind the receiver; tenants redirect rent to the receiver; the receiver steps into the landlord's shoes to manage, enforce covenants, serve notices, and take possession; all statutory landlord duties (gas safety; EICR; deposit protection; Renters' Rights Act 2025) apply to the receiver. Landlord in default: loss of rent (all rents belong to the receiver from appointment); loss of management control; no automatic possession (receiver must take possession proceedings for vacant possession); sale by receiver under power of sale in mortgage deed; duty of care to obtain proper market value (Silven Properties v Royal Bank of Scotland [2003] CA). Corporate borrowers: registration at Companies House within 7 days required (Companies Act 2006 s.859A); agency terminates on winding-up or administration. MCOB compliance: regulated lenders must follow FCA MCOB 13 before enforcement.

11 min readUpdated 7 June 2026Last reviewed: 17 May 2026lpa-receiver-propertyfixed-charge-receiver-landlordlpa-1925-receiver-appointmentmortgage-receiver-tenants

Appointment of an LPA Receiver — LPA 1925 ss.101–109

The power to appoint arises under LPA 1925 s.101(1)(iii) when the mortgage is made by deed and the mortgage money is due. The power is exercisable (s.103) when: (a) one month's notice requiring payment has been served; (b) interest is two months in arrears; or (c) the mortgagor is in breach of a non-payment mortgage covenant (e.g. obligation to insure; obligation not to let without consent; obligation to maintain). Most modern mortgage deeds contain express contractual powers wider than the LPA 1925 minimum — including appointment on first missed payment. Appointment is by written instrument; takes effect immediately; no court order required. For corporate borrowers: registration at Companies House within 7 days (Companies Act 2006 s.859A for charges registered after 6 April 2013); agency terminates on winding-up or administration order. The receiver is deemed by statute to be the agent of the mortgagor (LPA 1925 s.109(2)) — the lender is not liable for the receiver's acts; the receiver owes a duty of care to obtain proper market value on any sale (Silven Properties v RBS [2003] CA). Statutory powers (s.109(3)): demand and recover income; grant/accept surrender of leases up to 21 years; insure; repair — supplemented by express contractual powers in the mortgage deed.

Impact on Existing Tenancies and Landlord Obligations During Receivership

Existing tenancy agreements (ASTs and other tenancies) entered into before the receiver's appointment continue and bind the receiver — the tenants' rights and obligations are unchanged; tenants should be directed to pay rent to the receiver from the date of appointment. The receiver steps fully into the landlord's shoes: enforce tenancy covenants; serve s.8/s.21 notices (Renters' Rights Act 2025 abolishes s.21 for most tenancies from 2025); take possession proceedings; grant new tenancies up to 21 years. The receiver must comply with all statutory landlord obligations: gas safety certificate; EICR; smoke and carbon monoxide alarms; deposit protection and prescribed information; Homes (Fitness for Human Habitation) Act 2018; housing health and safety rating; Renters' Rights Act 2025. Tenants are not tenants of the lender and the lender is not liable for landlord obligations unless the lender becomes mortgagee in possession. For a buy-to-let landlord in default: all rental income is intercepted by the receiver from appointment — the landlord must not collect rent after appointment; management control is lost; physical possession is not automatic — the receiver must take possession proceedings for vacant possession if needed for a sale.

Frequently asked questions

What is an LPA receiver?+

An LPA receiver is appointed by a mortgage lender under LPA 1925 ss.101–109 when a borrower defaults, without a court order. The receiver collects rent, manages the property, and (if authorised) sells it to repay the mortgage. The receiver is deemed the borrower's agent (not the lender's) under s.109(2).

Do existing tenants have to pay rent to the LPA receiver?+

Yes — existing tenancy agreements continue and are binding on the receiver. Tenants should redirect rent payments to the receiver from the date of appointment. The receiver has all the landlord's management powers and statutory obligations from the date of appointment.

Can a lender appoint an LPA receiver without going to court?+

Yes — no court order is required. The power arises under LPA 1925 s.101 when the mortgage is by deed and the mortgage money is due. The power is exercisable when one month's notice has been served, interest is two months in arrears, or another mortgage covenant has been breached.

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