When do banks appoint receivers to properties?

Brendan Burgess

Brendan Burgess

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Under most investment property contracts, the banks can appoint receivers.

These are sometimes referred to as "Rent receivers".

Are there different types of receivers? Does a rent receiver have the power to sell the property?

Why do the banks not use this power much more often? If someone in arrears has a cheap tracker and positive equity, why does the bank not simply move in a receiver and sell the property?

What risk is a borrower in arrears of having a receiver appointed?

For example, if someone has a tracker mortgage and is paying the rent in full, can the lender appoint a receiver without notice?
 
Brendan, Appointment of rent receivers is a daily occurrence for buy to let properties. Rent receivers get their powers from the mortgage deed and will normally have powers to manage, rent and sell a property. Its not unusual at all.

Rent receivers are usually appointed in cases where the owner is collecting rents on investment properties but not paying the mortgage on the same property
 
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