Mortgages and land—enforcement of mortgages and legal charges over land


Published by a UUÂãÁÄÖ±²¥ Property expert
Practice notes

Mortgages and land—enforcement of mortgages and legal charges over land


Published by a UUÂãÁÄÖ±²¥ Property expert

Practice notes
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Introduction

This Practice Note looks at the options available to a lender who wishes to take action when a borrower has failed to meet their obligations under a mortgage.

It considers the following:

  1. •

    mortgagee’s right to possession

  2. •

    mortgagee’s power of sale

  3. •

    appointment of an LPA receiver

  4. •

    foreclosure

  5. •

    enforcement

For further guidance, see also Practice Note: Enforcement—security over land.

Mortgagee in possession

General

A legal mortgagee has the right to possession of the mortgaged property regardless of whether or not there has been any default on the part of the mortgagor. This right is set out in section 95 of the Law of Property Act 1925 (LPA 1925) but may be limited by agreement between the parties or by statute.

A mortgagee’s right to possession arises as soon as the mortgage is executed and can be exercised without notice or demand and (subject to any statutory restriction) without a court order.

Where a court order is not required, possession:

  1. •

    must be taken peaceably

  2. •

    does not require

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