Please Note: This Article is 8 years old. This increases the likelihood that some or all of it's content is now outdated.

Angry landlords are accusing buy to let lenders of taking over their properties with the help of a 100 year old law and LPA receivers rather than work with them when they face mortgage problems.

Many landlords say their lenders have grabbed their buy to lets under the Law of Property Act (LPA) – a piece of legislation from the 1920s.

Landlord Joan Keeley claims her lender used the LPA law to snatch a portfolio of homes worth £2 million.

Now, she owes the bank nearly £400,000 and has no right of appeal against the receivership.

The 1925 law lets banks and building societies appoint a receiver to manage a rental property if a borrower has breached the terms of their mortgage.

They collect rents, look after repairs and manage tenants.

But landlords are complaining that they charge huge fees that are added to the borrower’s debt.

Another issue between landlords and receivers is an LPA receiver is unregulated. Although trade bodies the Royal Institution of Chartered Surveyors (RICS) and the Insolvency Practitioners Association (IPA) set an exam and code of practice, supervision is loose.

LPA receivers do not have to take the exam but do have to hold an insolvency licence.

LPA rules allow no representation or right of appeal by a landlord at a receivership hearing.

Keeley’s lender appointed an LPA receiver after she withheld mortgage payments in a dispute about the balance of her account.

She says she received a letter demanding £2 million in loan repayments and then, when expecting to go to court, was notified a receiver had been appointed.

The Insolvency Service is an agency of the Department for Business Innovation and Skills (BIS).

Statistics on LPA receiverships are hard to come by as they are grouped with corporate insolvencies.

Although the latest BIS statistics show corporate insolvencies are falling quarter on quarter, it’s not possible to tell how many are LPA receiverships.

In Q3 2013, the number of corporate insolvencies was 253, falling to 236 in Q$ and 205 in Q1 2014.

Please Note: This Article is 8 years old. This increases the likelihood that some or all of it's content is now outdated.


  1. I am Joan Keeley referred to in this article and I would very much like to hear from others affected by the appointment of LPA Receivers. This happened to me four years ago and it has resulted in me losing everything including my home. Four years ago I lived in a brand new five bed detached house, I am now in a rented flat surviving on benefits plus I have a £400,000 debt hanging over me. My story is by no means unique and I am in touch with many people who have been victims also. The bank that did it to me is the Kent Reliance Building Society (now trading as the OneSavings Bank) and i would be pleased to hear from other Kent Reliance customers who had this happen to them as well as those with other banks. I know Mortgage Express customers are among those most affected but many other banks have used TOTALLY UNREGULATED LPA RECEIVERS to do their dirty work and it\’s a disgrace. My MP has raised the matter in parliament and George Eustice MP has been working for changes in the law but the government has a vested interest and the courts will not go against the banks so victims such as myself have nowhere to turn. Only people power will get us the justice we deserve so please help with the fight against the banks using a loophole in this antiquated law to ruin businesses and lives. You can contact me on Thank You

  2. Lenders have found a loop hole to repay their debt it\’s unfair let\’s give you am umbrella when it\’s sunny and take it back when it\’s raining

  3. Like RBS, banks and mortgage companies are forcing our business into debt and taking away or properties even with large amounts of equity. Lots of our properties are being sold off to foreign investors and previous owners personal details are being kept on Land Registry as a farce. Broken contracts. Who is going to compensate us for broken contracts and business losses? AG

  4. My sons had 2 properties in 2010 taken by LPA receivers when they fell into arrears due to tenants not paying. I offered to pay the ful amount outstanding (£4000) but the LPA receivers refused to relinquish the properties. They intimidated tenants by issuing s21 notices, let other tenants run up arrears of £4k, did not endorse a court order for rent payment, allowed the tenants to trash the property and then leave. They boarded up the property and allowed it to become derelict. They refused to discuss anything with us \’as it was none of our business what they did\’. The lenders eventually allowed us to get the properties back in January 2013. The receivers had added £25k of costs to the mortgage debt. I have paid £6.5k in arrears and £30k renovating the property. This was done to save my sons from bankrupcy caused by these receivers and the lender. They are unscrupulous and do not care anything about the landlord. We are continuing to fight for some recompense and would be happy to discuss this.

    • How far did you get regarding the damage they had caused? We are trying to get some recompense for damage the LPA caused, but not sure it is a worthwhile venture. The law needs to be changed limiting their actions.

  5. I am a tenant and recievers have come to my flat with a letter & deed saying I need to pay rent to them now. Since they came, my landlord has also demanded the rent. What should I do?

    • You have a contract with your landlord not the receiver. This is a common method uesd by LPA receivers. They try to intimidate the legal tenant who in turn complains about their harassment to the landlord. This they hope will pressurise the landlord further. Unfortunately the tenant may decide to leave because of this. Now the landlord has no income from their property to pay any arrears on it? Makes no sense whatsoever. You as legal tenant have nothing to worry about as long as you have a contract through your landlord or his estate agent. You should hand over any correspondence ref this to your landlord and ignore LPA Recivers. They would then have to seek an adjudicaton from court to evict you in order to repossess the property. You cannot be made homeless and the Court would be sympathetic to your plight. You would be given plenty of time to find a new home if they did side with the receiver.


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