Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Fixed charge definition

What does Fixed charge mean? A fixed charge is a security interest over specific, identifiable assets. The chargor cannot sell or otherwise deal with those assets (or their proceeds) without the charge holder’s consent, and the security attaches on creation. In England and Wales and Northern Ireland, case law (notably Spectrum Plus) distinguishes fixed from floating charges by looking at control and the chargor’s freedom to deal; free dealing usually means a floating charge. In Ireland, similar principles apply, supported by case law and the Companies Act 2014. Fixed charges are commonly taken over land, plant and machinery, shares, intellectual property and receivables (often...

Fixed Charge Receiver Property Sales: Differences from Solvent Sales, Overreaching, Documentation, Liability Exclusions and Buyer Due Diligence (England and Wales)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

Where a Fixed charge Receiver acts for the seller in disposing of a property, the overriding aim is a ‘clean deal’. This means that, on Completion, both the receiver and the appointing mortgagee will know the exact sum due to the mortgagee after deducting sale costs and expenses, with no post-completion claims against:

the receiver (and the mortgagee where the mortgagee is transferring the property—see Practice Note: Overreaching by a mortgagee)
the net sale proceeds payable to the mortgagee

This outcome is secured by transferring risk to the buyer and excluding the receiver’s personal liability.

Sales information pack and pre-contract enquiries

Buyers should recognise that, as the receiver is not the property owner and may have been appointed only recently, the receiver will hold very limited information about the asset. The position is especially challenging where the property is let and has been managed by the mortgagor or by managing agents. In practice, receivers may be able to gather helpful details from managing agents, if there...

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Web page updated on 22/05/2026

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