Diary of a UK Property Investor – www.hbfinvestments.co.uk

The business world of LPA Receivers and their repossession of investment properties is booming thanks to the credit crunch!   Please see LPA Receivers – Back with a Vengeance!  Source: DWF LLP

This is a red hot topic currently and is one which provides both massive opportunities for bargain hunters with the right LPA contacts  but also serious risks to property investors who are struggling with their mortgage payments!

Many property investors are having their investment property portfolios effectively repossessed immediately even if they miss just one mortgage payment.  Simply 10,000’s of Buy to Let properties will be repossessed during the credit crunch by LPA Receivers in this way!

Until recently, lenders would apply to the courts for possession of properties but this process can take months.  Lenders short cut this process instantly by utilising the Land and Property Act 1925 to appoint LPA Receivers to effectively repossess a property or property portfolio.  By instructing the LPA Receiver, the lender effectively redirects & collects rents and is able sell a property almost at will and at any price they want to accept and as quickly as possible.

There are many investors who have been caught in this trap and they appear to have no recourse to challenge the LPA Receivers actions:  please see forums: Consumer Action Group and Money Saving Expert. It appears that if landlords get into short term trouble they can lose all their equity and cash flow from their rents and there is little if anything they can do about it.

On the flip side, LPA Receivers need to find buyers for all these properties and this presents a massive opportunity for property investors with the right contacts.

HBF Investments is a company working with LPA Receivers to source properties and trade them with property investors.  Most of the properties come tenanted and at 25% discounts. 

I personally see this environment and opportunity persisting for 24 months as when interest rates rise from 0.5% far more investors are going to have their portfolios repossessed.

Source: David Coughlin. HBF Investments

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