Land Law: Mortgages

Question 1

What are the two ways of creating a legal mortgage? Authority?

Answer 1

Under s85 LPA 1925:

• A lease for term of years absolute, where the lease expires on redemption on the mortgage.
• A charge by deed (only available for registered land under s23 LRA 2002)

Question 2

How do you protect a legal mortgage?

Answer 2

by notice in the charges register

Question 3

What are the implied rights? What is the authority?

Answer 3

s101(1) LPA 1925:

• to keep the property in a state of good repair
• not to alter the property
• restrict the use of the property
• keep it insured

Question 4

What are the remedies to recover mortgage arrears?

Answer 4

• Debt action
• Possession
• Appointing a reciever

Question 5

Which section of Criminal Law Act 1977 states that lenders do not have lawful authority to use or threaten violence to obtain possession?

Answer 5

s6(2) Criminal Law Act 1977

Question 6

Where the property is a dwelling-house, which acts must be considered regard possession?

Answer 6

• s36 Administration of Justice Act 1970: if the court decides that the mortgagor is able to repay the ‘sums due’ or remedy the breach within a reasonable time, the court can adjourn the proceedings
• s8 Criminal Justice Act 1973: Where the deed provides for the sum to be repaid by instalments, ‘sums due’ means only the instalments which are in arrears at the date of the possession proceedings, not the full amount outstanding on the mortgage.

Question 7

Which act implies that in every mortgage made by deed, it is possible to appoint a receiver?

Answer 7

s101 LPA 1925