The online resource for UK Property Law

Mortgages

This section contains material on a number of matters relating to mortgages. The topics covered can be seen in the contents list on the left.

Redemption

Clog on equity of redemption Liability for contingent costs Re: Industrial North West LLP (in Administration) [2020] EWHC 3052 (Ch) Summary A mortgagee was entitled to retain security, notwithstanding the repayment of a loan, against a contingent liability for legal...

read more

Receivers

Entitlement to claim possession Availability of s36 AJA 1970 to the borrower? Menon v Pask and Goode [2019] EWHC 2611 (Ch) Summary Receivers appointed by a bank as mortgagee were entitled to sue for possession, notwithstanding that they acted as agents of the...

read more

Assignee of charge

Assignee claiming possession Assignment of debt Promontoria (Oak) Limited v Emanuel [2020] EWHC 563 (Ch) Summary In a possession and money claim brought by the registered assignee of a legal charge, the Appeal Judge found that the Claimant was entitled to possession...

read more

Counterclaim and set-off

Claim for declaration as to entitlement to damages and set-off Limitation - summary judgment Woodeson v Credit Suisse (UK) Limited [2018] EWCA Civ 1103 Summary A bank was entitled to summary judgment against borrowers on their claim for declarations as to their...

read more

Time to sell

What are the court's powers when a borrower needs more time to sell the house to pay off the whole of the mortgage debt? Does the borrower need to have contracts in place before the court will adjourn or stay to allow the sale to be completed? In this article Gary...

read more

Costs

Indemnity costs Contract term required Helden v Strathmore Ltd [2011] EWCA Civ 542 On the question of costs in this case, the judge had been wrong to assume that all mortgagees are entitled to indemnity costs. While it is perfectly true that the majority of mortgages...

read more

Discrimination defences

See also the Discrimination defences page in the general Possession claims section of the site. Disabled borrower in arrears Lender's refusal to convert to interest only loan Green v Southern Pacific Mortgage Ltd [2018] EWCA Civ 854 Summary A lender-s refusal to...

read more

Marshalling

Introduction Marshalling is an equitable remedy. It applies where the owner of two properties, X and Y, mortgages them both to lender A, and then mortgages one, say Y, to lender B. When A seeks to recover its debt, B can require that it does so first out of X. B is in...

read more

Facility agreement

Relationship to legal charge Rectification of register - power of sale Cherry Tree Investments Ltd v Landmain Ltd [2012] EWCA Civ 736 Summary A facility agreement and legal charge are separate documents. It is not possible, as a matter of interpretation, to insert a...

read more

Negligence and loans

Advance of further funds Causation Tiuta International Ltd v De Villiers Surveyors Ltd [2017] UKSC 77 Summary A mortgage valuer is only liable for the consequences of his negligent valuation. Where the same valuer had been negligent in respect of a second valuation...

read more