Q&As

Can a mortgagee who has not been paid simply sell the property without a court order?

read titleRead full title

Produced in partnership with Helen Galley of XXIV Old Buildings
Published on: 19 June 2017
imgtext

We are not told what the mortgaged property is but it is assumed that it is real property, ie land.

There is no implied power of sale in favour of a Mortgagee, but that does not mean that a mortgagee cannot sell the mortgaged property without seeking a court order to that effect. There may be an express right to sell contained in the mortgage deed or alternatively the mortgagee might rely on the statutory power of sale.

The statutory power of sale is now contained in sections 101 and 103 of the Law of Property Act 1925 (LPA 1925). The statutory power may be extended or varied by the express terms of the mortgage deed. See The Maule. See Practice Note: Mortgages and land鈥攅nforcement of mortgages and legal charges over land.

The statutory power contained in LPA 1925, s 101 provides that where a mortgage is made by deed,

Helen Galley
Helen Galley

XXIV Old Buildings

Helen has built up a reputation as a well-respected commercial Chancery practitioner with an emphasis on property and trusts related issues. She has built up extensive and wide ranging expertise in both non contentious and contentious property matters ranging from small scale cases to multi-million pound developments. Helen has also acted in a wide range of commercial and business disputes in areas as diverse as travel, hire purchase, the media, entertainment, IPR, IT and e-commerce. Contentious and non-contentious trusts matters, both on and offshore, are a regular feature of her caseload. Helen is a member of STEP, ACTAPS, the Property Bar Association, the Chancery Bar Association and IAL as well as an accredited mediator. Helen is recommended as 鈥渁 first-rate advocate鈥 in Legal 500 2015 for private client (trusts and probate), partnership and professional negligence. She is said to be 鈥渃onsistently able to provide excellent advice in a charming and friendly style鈥 and is 鈥渞esponsive, hugely supportive and extremely user-friendly鈥.

Read moreRead more
Powered by Lexis+庐
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Mortgagee definition
What does Mortgagee mean?

The person a mortgage is granted to.

Read more readmore

Popular documents

Long leases鈥攎ortgage cure rights

Long leases鈥攎ortgage cure rightsForfeiture provisions in rack-rented occupational leases are commonly accepted; this is because those leases rarely have capital value. However, long leases (which usually have a minimal ground rent) are considered to be more akin to freeholds and are likely to have a

Is a loan between two private individuals secured on the debtor's property by way of a legal charge

Is a loan between two private individuals secured on the debtor's property by way of a legal charge enforceable?The simple fact that a loan is between two private individuals is no bar to enforcement of that loan or any legal charge over it.Loans are more generally thought about in the context of

A property is being sold by a mortgagee in possession. The title is also affected by a restriction

A property is being sold by a mortgagee in possession. The title is also affected by a restriction benefitting another individual and made by an order of the court. That restriction is dated after the date of registration of the charge under which the seller is exercising the power of sale. Will the

Fixtures and fittings

Fixtures and fittingsWhen transferring an interest in land (whether freehold or leasehold), unless the contract provides otherwise:鈥ny fixtures form part of the land and are transferred with it, and 鈥ny fittings (also known as chattels) do not form part of the land and will not be