What is LPA or fixed-charge receivership?
LPA or fixed-charge receivership usually allows a secured lender to appoint a receiver over particular property or assets under its legal powers. It is different from placing the whole company into administration or liquidation. The appointment documents determine the receiver’s authority.
Business Insolvency Helpline • Checked 1 November 2026
General guidance, with procedural detail focused on England and Wales. Rules and routes can differ in Scotland and Northern Ireland.
What can the receiver do?
A receiver may collect rent, manage the secured property or arrange a sale to recover the lender’s money, depending on the terms and applicable law. Other parts of the business may continue operating.
Obtain the mortgage, charge, default notices and appointment documents. Identify precisely which assets are covered before giving instructions to tenants, agents or buyers.
Is administrative receivership different?
Yes. Administrative receivership concerns the whole or substantially the whole of a company’s property under qualifying security and has different rules. Administration is another separate procedure with statutory objectives and an administrator.
Do not infer the company’s status from the word receiver alone. The appointment may affect one property without ending the company’s legal existence.
What should directors review?
Calculate how losing rental income or an operating property affects the rest of the business. Check any personal guarantees and whether a sale could leave a shortfall. Speak to the lender and obtain legal advice promptly if the appointment or claimed default is disputed.
A refinancing or sale proposal needs evidence, funding and the necessary consent. An unsupported promise of future investment may not stop enforcement.
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Related questions
Not necessarily. It may concern only the secured assets, although losing them can make the remaining business unviable.
Check the receiver’s appointment and instructions. Do not redirect income that falls within the receiver’s authority.
Not automatically. Review the remaining balance, guarantee terms and any written release.
Sources checked for this guide
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