Commercial mortgages are loans that are secured on commercial property such as shops, business premises, warehouses, factories and farms. As with a residential mortgage the commercial lender will hold the title deeds to the property as security and in the event of arrears the mortgage lender will take steps to repossess the commercial property.

However, lenders can face a number of circumstances which they may not wish to physically take possession of the premises themselves and expose themselves to liabilities arising from being in possession. They might appoint instead a Law of Property Act Receiver under the terms of the lender’s legal charge to deal with the property when the terms of the mortgage are not being met, usually when repayments and interest are not being paid by the borrower. LPA Receivers are experts who can manage the property, deal directly with the occupants, outstanding insurance and repairs and other problems and Receivers can collect in money perhaps from rents or by selling the property to repay the debt due to the lender.

For advice on Commercial Mortgage Repossessions please contact:

Paul Addison on 01934 637 909 e-mail addison@powellslaw.com, or
Rabina Ahmed on 01934 637 913 e-mail ahmed@powellslaw.com.