Chapter 13- House Purchase By Mortgage Flashcards
What are the 3 types of mortgages available
Repayment mortgage
Endowment mortgage
Pensions mortgage
What is a repayment mortgage
Monthly repayment to lender of the capital and interest for a period of 20-25 years
What is an endowment mortgage
Payment of only the interest owed. Then take our endowment insurance which is used to pay off the capital at the end of the mortgage
What is a pension mortgage
Links with a pension, usually used by self employed as beneficial for tax purposes
What is a grant by demise
A mortgagor lease over land for a mortgage
Two kinds of mortgages
Legal or equitable
What is a legal mortgage
Legal mortgages are legal interests under s1(2)LPA 1925
If the land is unregistered how can a mortgage be created
A lease (grant by demise) for a term of years for provision of cessation on redemption (can be paid off early)
A charge by deed
How long is the term of mortgage on unregistered land by way of grant for demise
3000 years
How must a charge be registered on an unregistered land
By deed which states ‘property has been charged with the debt by way of legal mortgage’
3 ways mortgages are registered on registered land
By deed
Expressly staying property has been charged by legal mortgage
Registered on charges register of the title
If mortgagee fails to register charge for mortgage do they bind the purchaser
No, unless protected by notice
What is an equitable mortgage
Created in writing and used to secure short term loans or overdrafts
What is the legal date of redemption
6 months from date of mortgage the mortgagor can repay in full
What is equity of redemption
Mortgagor has equitable right to redeem the mortgage once legal date for redemption has passed
Fairclough v swan brewery co
Brewery lease was void on the basis the mortgage had a term which prevent early repayment ‘clog on the equity of redemption’
Two remedies mortgagee can exercise when mortgagor defaults on mortgage
Obtaining possession and selling property
What Dow’s s101 LPA 1925 allow
The power of ale where the mortgage is made by deed and mortgagor has failed to repay
Under s103 LPA 1925 what conditions need to be met for power of sale
Interest repayments are more than 2 months in arrears
Notice to pay capital loan has been served and 3 months passed without payment
A breach of another term of mortgage (leased when no permission granted)
What is an action in debt
Where mortgagee obtains benefit for indemnity insurance in case debt is not repayed (mortgagee can sue mortgagor for sum owed)
What is appointment of receiver?
Business property appoints receiver rather than sell
What is foreclosure
Transfer of property into name of mortgagee from the mortgagor
How is mortgage protected on unregistered land
Deposit of the title deeds with the lender
What is puisne mortgage
Second or subsequent mortgage
How can second mortgage be protected on unregistered land
By class Ci land charge
How can an equitable mortgage be protected?
By class C(iii) charge under LCA 1972
