Overreaching by a mortgagee


Produced in partnership with Amanda Eilledge of Gatehouse Chambers
Practice notes

Overreaching by a mortgagee


Produced in partnership with Amanda Eilledge of Gatehouse Chambers

Practice notes
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Overreaching is a statutory mechanism available to a mortgagee (among others) to confer title on the buyer free from charges and encumbrances ranking subsequent to the mortgagee’s security. Overreaching is also available in receivership sales, by ensuring that the mortgagee, rather than the receiver executes the transfer of the property to the buyer.

Overreaching can also occur in the context of a mortgagee taking security for repayment of a loan from the trustees of a trust. The mortgagee will be concerned that the security document granted to it by the trustee will overreach the beneficial interest of the beneficiaries of the trust. For more information, see Practice Notes: Enforcement issues for trust property and Overreaching—sales by trustees of land.

Buyer’s requirements

When taking an appointment, a receiver should consider the requirements of a potential buyer. Usually, a buyer will want to acquire a property free from any charges, including the charge in favour of the selling mortgagee and any other charges registered on the title.

The problem is how to satisfy a buyer where the net sale

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Overreaching definition
What does Overreaching mean?

The transfer of beneficial interests from land to the proceeds of sale.

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