Receivership is used by banks to enforce their loan when a borrower defaults. The advantage to a bank or lender is they get control of the security, for example a freehold property, so it can be sold.
If you are a borrower, it is something you want to avoid unless you cannot pay the debt back and you are at the stage where you don’t care what happens anymore.
To a lender or bank either appointing a Receiver or a Law of Property Act Receiver it gives them control of the asset they have lent on and you can secure it, insure it and arrange for it to be sold without the borrower interfering in that process.
To find out more about receivership and discuss your options contact us today. We offer free initial advice and can meet at your offices.