Real Property Security

Security Impairment

General There are various grounds on which a mortgage or charge may be invalidated or impaired. In some cases, the risk may arise as a result of certain matters which are covered by the legal due diligence or under the borrower’s solicitor’s certificate of title.… Read the rest

Property Mortgages

Overview I Strictly speaking, a mortgage relates to unregistered title. Security over registered title and all post-2009 Act real property security must be by way of a “legal charge” over the borrower’s interest in the property concerned.… Read the rest

Priority

Overview Priority issues arise where a property is mortgaged to more than one mortgagee. The earlier mortgagee usually has prior entitlement to the proceeds of sale of the security in the event of enforcement. The earlier mortgagee has primary rights to enforce the security.… Read the rest

Post-2009 Act Mortgages

Overview The bulk of the Land Law and Conveyancing Reform Act came into force on 1st December 2009. It applies to mortgages / charges executed on and after that date. The Act represented the most significant change in property and mortgage law in over 125 years.… Read the rest

Mortgagee Protections

Rights to Protect Security I A mortgagee has rights under the general law to protect its security. A court application may or may not be necessary or appropriate. There may be a number of options. In some cases, it will be possible to exercise rights without the assistance of the court.… Read the rest

Mortgage Clauses

General The loan agreement and the mortgage deed together set out the legal rights and obligations of the lender and borrower. It is possible in principle, to have all matters comprised in the mortgage deed. However, convenience and practical considerations make a separate loan agreement and mortgage deed preferable.… Read the rest

Enforcement Clauses

Enforcement The mortgage or other security document generally provides that it is enforceable when the secured monies fall due. This will often be expressed to be on demand. Sometimes, a certain a number of days’ notice is required for the demand.… Read the rest