The primary duty of the LPA receiver is to receive income from a property and use it to discharge the debt owed by the borrower. This is achieved by collecting the rent and covering the running costs.
The receiver must also unearth any “skeletons” by locating up-to-date signed leases and demise plans and checking for any rent review memos. Is the lease excluded from the 1954 Act? Are the necessary licences in place? What are the service charge details?
Finding out which contractors are working on the site is the next step. Determine what they do, when they do it and how much it is costing. Then outline how you would like the work done and agree a fee structure with flexible terms.
Make sure you achieve statutory compliance and carry out a full health and safety audit, obtain asbestos reports and appoint experts to undertake a fire risk assessment.
You can provide added value to the site by collecting outstanding arrears, renewing and regearing leases, marketing vacant units and checking compliance with covenants.
If the trail goes cold, use the tenant’s knowledge. Hold a tenants meeting to gain information. Ask previous managing agents for documentation. Health and safety documents are a priority.
Sarah McCune is a management surveyor at Legat Owen
