When do banks appoint receivers to properties?

Brendan Burgess

Brendan Burgess

Founder
Messages
52,183
Under most investment property contracts, the banks can appoint receivers.

These are sometimes referred to as "Rent receivers".

Are there different types of receivers? Does a rent receiver have the power to sell the property?

Why do the banks not use this power much more often? If someone in arrears has a cheap tracker and positive equity, why does the bank not simply move in a receiver and sell the property?

What risk is a borrower in arrears of having a receiver appointed?

For example, if someone has a tracker mortgage and is paying the rent in full, can the lender appoint a receiver without notice?
 
Brendan, Appointment of rent receivers is a daily occurrence for buy to let properties. Rent receivers get their powers from the mortgage deed and will normally have powers to manage, rent and sell a property. Its not unusual at all.

Rent receivers are usually appointed in cases where the owner is collecting rents on investment properties but not paying the mortgage on the same property
 
You must log in or register to reply here.
Back
Top