114 | P2P Independent Forum

crabbyoldgit
Member of DD Central

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114 Jan 22, 2017 7:41:59 GMT

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Post by crabbyoldgit on Jan 22, 2017 7:41:59 GMT

I was in this loan over my normal max stake until about 2 weeks ago, when I started slowly selling out, now I am at about 1 1/2% of my ac pot . This my normal comfort level.
The good news, I think, is the administrator of the 2nd charge company must think some value will remain after paying us in full to consider taking on the costs of appointing a lpa .So hopefully we may get a full recovery.
AC were very keen to appoint their own lpa in control, why, now I assume the bill is ours, not the second charge holder. I can only think AC think the sell of the asset to the proposed buyer can be completed quickly at little extra cost. I feel the buyer has strung along the borrower for months , my notes mention a completion in April 2016!!. Well in the new situation if the buyer requires the land to complete their plans it must light a fire under the backside, it's put up or maybe loose it time.
Which bring me to a question , the lpa as we are paying, is in our employ , is it their legal responsibility to obtain the best outcome for just us or all creditors who hold charges over the asset?

mikes1531
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114 Jan 22, 2017 20:45:00 GMT

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Post by mikes1531 on Jan 22, 2017 20:45:00 GMT

The previous post seems to have a lot more authority/knowledge than I do, but IIRC AC once indicated here in the forum that the LPA receivers' principal responsibility was to the owner of the property.

I haven't a clue whether, if correct, that really would have any significant effect on the action taken -- or the result.

andrewholgate
Representative of Assetz Capital

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114 Jan 23, 2017 9:21:00 GMT

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Post by andrewholgate on Jan 23, 2017 9:21:00 GMT

Costs - It doesn't matter who appoints, the LPA costs are deducted from the sale proceeds. To say "the costs are now ours" is wrong as the costs would be incurred anyway and come straight out of the recovery.

LPA Receivers owe and equitable duty to both mortgagor and mortgagee but their primary responsibility is to repay the mortgage debt. Under Section 4 of the LPA the LPA receiver owes the mortgagor a duty to use reasonable skill and care in obtaining both a proper price for the property and in managing the property. Where the LPA receiver carries on the business of the mortgagor he/she has a duty to try and trade profitably and with due diligence. Essentially, the LPA Receiver has to achieve the best outcome for the property owner

What happens is that we will tell the LPA what our debt is and they then take an Agency style responsibility for the property in ensuring it is let (like Ipswich where we were able to up the occupancy), insured (like Ipswich where the fire happened) and sold for the best price (multiple cases). If the best deal is a shortfall, it is not the LPA's responsibility to reject the deal. They have found the best price and any shortfall is left to be recovered by the lender through any other security/recourse means.

Hope that helps.

andrewholgate
Representative of Assetz Capital

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114 Jan 23, 2017 9:22:28 GMT locutus and dermot like this

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Post by andrewholgate on Jan 23, 2017 9:22:28 GMT

Forgot to add, as the first charge holder we have the right to appoint the LPA. If a second charge holder moves to appoint, we can't stop them appointing but we do get the right to choose the LPA Receiver. We have moved first in order to protect our lenders.