Lenders

If you have clients in financial difficulty, we can help them with clear and impartial financial advice and set out the options. We can also act as a barrier between you and them to make sure they are aware of the possible financial scenarios and to help them ‘see sense’.

If you have a secured debt or an asset based loan and want to recover the funds we can act as:

• a Law of Property Act Receiver to take charge and manage the sale of a property. This is also known as an LPA Receiver. The advantage to using an LPA Receiver for a lender is that there are no immediate legal fees and dispute over whether a debt can be enforced or not – you can just appoint us (provide the loan documentation is valid) to manage and sell the property right away. There is no need to go to court and wait for a hearing.                                                 
• An Administrator if you have a debenture on the limited company. This is a quick method to get control of a limited company and stop the assets being dispersed. Any fixed charge assets will be repaid to you on disposal (less our agreed fee) whilst floating charge assets have to be dealt with in an agreed order of payment of debts.

The fees we charge for this type of work vary on the complexity of case and assets but typically we work on a fixed one-off fee for acting as an LPA Receiver and time use time costs for acting as an Administrator.

Example of us acting as an LPA Receiver

We are contacted by a secured lender who want to appoint us.

We check the loan documentation and usually also visit the property. We then issue a fixed fee quote. For a typical property with say a value of £500,000 we would quote a fixed fee of £20,000 including vat (you can not usually reclaim the vat). 

Once you instruct us we accept in writing and then take control of the property and will change the locks and implement a site security plan. This may mean caging off the site, video camera monitoring and regular site visits. These costs will be extra.

We then ask a property agent to assess the property and will sell it by private treaty or auction as appropriate.

The costs and expenses of the LPA Receiver are added to the debt so are paid by the borrower.

The borrower has to deal with us creating a barrier between you and them.

If you would like a quote for us to act as an LPA Receiver please telephone or email me on david@kirks.co.uk.