Property-Mortgage

0.0(0)
studied byStudied by 0 people
0.0(0)
full-widthCall with Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/9

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai

No study sessions yet.

10 Terms

1
New cards

s.205(1)(xvi) Law of Property Act 1925

A mortgage is a legal charge

“Mortgage” includes any charge or lien on any property for securing money or money’s worth.

2
New cards

How is a mortgage created?

  1. S 1 (2) [c] LPA 1925--charges are capable of existing at law but to be legal need to follow 2 requirements:

    1. Charge needs to be granted by deed--s52 (1) LPA

    2. Need to register the charge--s27 (2) [f] LRA

3
New cards

Right to possession

s 87, LPA

Mortgage lender who has got a charge, has the same entitlement to the land as a tenant

4
New cards

why is right to possession imp?

  1. Prelude to sale: easier for the lender to sell once they have possession

  2. Property will be worth more with warranty of vacation possession

  3. Conserve the property's value

5
New cards

Impact of repossession on the borrower’s family e.g. disrupting their children’s education

Bristol & West Building Society v Ellis [1996] EWCA Civ 1294

6
New cards

When can a lender exercise their right to possession?

  1. If lender has priority: Can exercise right to possession using S87 LPA as a prelude to sale

  2. If lender does not have priority: make application under s14 TOLATA for sale

7
New cards

Remedies used by lender to enforce their charge

remedies can be used successively—alliance & leicester plc

  1. Right to possession

    1. S87 LPA

  2. Power of sale

    1. S101 & S103 LPA

  3. Action on the personal covenant--kinda irrelevant in the modern world

    1. Suing borrower in breach of contract (personal claim)--not tied to the property

    2. Usually done in a negative equity situation post the possession of the house and sale but the proceeds of sale are lesser than the amt owed

  4. Power to appoint a receiver

    1. S101 & S103 LPA

    2. Usually used in commercial mortgages

  5. Foreclosure

    1. S88 (2) LPA

    2. Rarely happens

8
New cards

MCOB 11.6.2

Requires lenders to assess whether the borrower can pay the sums due before the mortgage is given

9
New cards

MCOB 11.6.5

  1. What to regard when issuing a mortgage as a lender

  2. Evidence needs to be obtained by the lender to calculate the affordability of the mortgage

10
New cards

MCOB 11.6.41

Tackles the interest only problem--asks for clear repayment strategy for interest only mortgages