Mortgagee in Possession in UK Law

Leading Cases
  • Medforth v Blake
    • Court of Appeal (Civil Division)
    • 26 Mayo 1999

    They are duties in equity imposed in order to ensure that a receiver, while discharging his duties to manage the property with a view to repayment of the secured debt, nonetheless in doing so takes account of the interests of the mortgagor and others interested in the mortgaged property. What a mortgagee or a receiver must do to discharge them depends upon the particular facts of the particular case.

    I do not accept that there is any difference between the answer that would be given by the common law to the question what duties are owed by a receiver managing a mortgaged property to those interested in the equity of redemption and the answer that would be given by equity to that question. I do not, for my part, think it matters one jot whether the duty is expressed as a common law duty or as a duty in equity.

  • Palk v Mortgage Services Funding Plc
    • Court of Appeal (Civil Division)
    • 31 Julio 1992

    So far as I am aware, foreclosure actions are almost unheard of today and have been so for many years. They usually appoint a receiver or exercise their powers of sale. Take the present case: the security is inadequate, but Mortgage Services is not seeking to foreclose, nor is it seeking to sell at once. The nineteenth century cases were not concerned with this situation. The principle applied in those cases does not address the problem which has now arisen.

    In the exercise of his rights over his security the mortgagee must act fairly towards the mortgagor. His interest in the property has priority over the interest of the mortgagor, and he is entitled to proceed on that footing. He can protect his own interest, but he is not entitled to conduct himself in a way which unfairly prejudices the mortgagor.

  • Meretz Investments NV v ACP Ltd
    • Chancery Division
    • 11 Diciembre 2007

    Where, however, a mortgagee has mixed motives (or purposes) one of which is a genuine purpose of recovering, in whole or in part, the amount secured by the mortgage, then in my judgment his exercise of the power of sale will not be invalidated on that ground. In addition I consider that it is legitimate for a mortgagee to exercise his powers for the purpose of protecting his security.

  • Hill (Edwin) and Partners v First National Finance Corporation Plc
    • Court of Appeal (Civil Division)
    • 22 Julio 1988

    The Respondents had the rights of a secured creditor, that is to say the right to be repaid their loan together with interest; in support of that right they had the remedies or rights granted by the legal charge and the law, namely to sell the land or appoint a receiver.

    Justification for interference with the Plaintiffs' contractual right based upon an equal or superior right in the Defendant must clearly be a legal right. Such right may derive from property real or personal or from contractual rights.

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Legislation
  • Landlord and Tenant (Covenants) Act 1995
    • UK Non-devolved
    • 1 de Enero de 1995
    ...... under the tenancy in respect of those premises, or(b) any mortgagee in possession of the reversion in those premises who is so entitled. . (2) ......
  • Law of Property Act 1925
    • UK Non-devolved
    • 1 de Enero de 1925
    ......are— .   . ( a . ) An estate in fee simple absolute in possession;. .   . ( b . ) A term of years absolute. . (2) The only interests ...of this Act (not being a power vested in a legal. mortgagee or an estate owner in right of his estate. and exercisable by him or by ......
  • Increase of Rent and Mortgage Interest (Restrictions) Act 1920
    • UK Non-devolved
    • 1 de Enero de 1920
    ...... the Law with respect to the increase of rent and recovery of possession of premises in certain cases, and the increase of the rate of interest on, ... Provided that, where a landlord or mortgagee has increased the rent of any such dwelling-house or the rate of interest ......
  • Landlord and Tenant Act 1954
    • UK Non-devolved
    • 1 de Enero de 1954
    ......entitled by virtue of the Rent Acts to retain possession of the. whole or part of the property comprised in the tenancy. . (2) ...those premises or any part thereof or the mortgagee in. possession of such an owner and, if not,. .   . ( b . ) (to the ......
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Books & Journal Articles
  • Making a Silk Purse out of a Pig's Ear ‐ Medforth v Blake & Ors
    • No. 63-3, May 2000
    • The Modern Law Review
    ...... v First City Corporation Ltd 1 the Privy Council held that a mortgagee, and a receiver and manager 2 appointed by him, owe no general duty of ..., a venerable feature of the law governing mortgagees in possession, and now expressed to be applicable also to receivers. It will be ......
  • The Problem
    • Contents
    • Positive Covenants and Freehold Land
    • Christopher Jessel
    • 37-46
    ...... deriving a subsidiary title such as a tenant or licensee or a mortgagee in possession. It may, but does not always, bind a squatter in adverse ......
  • Making the Case for Socio‐legal Research in Land Law: Renner and the Law of Mortgage
    • No. 37-4, December 2010
    • Journal of Law and Society
    The aim of this article is to enhance knowledge of and to encourage further research into two areas not traditionally the subject of socio‐legal research, namely, the work of Karl Renner and the En...
    ...... 7 Renner, op. cit., n. 1, p. 53. 8 Pre-Action Protocol for Possession Claims Based on Mortgage or Home Purchase Plan Arrears in Respect of ...The mortgagee's inherent right to possession, for example, has been in evidence since ......
  • Receivers and the Rights of Secured Creditors under Bermuda Law
    • Part III. Commercial dispute resolution
    • Offshore Commercial Law in Bermuda - 2nd Edition
    • Ian R. C. Kawaley/Karen Skiffington
    • 379-408
    ...... local businesses) and managed receiverships of properties by the mortgagee in possession. This trend has developed the court’s experience in ......
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Law Firm Commentaries
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Forms
  • Applications relating to Empty Dwelling Management Orders (EDMOs)
    • HM Courts & Tribunals Service court and tribunal forms
    Housing and planning forms including Rent Repayment Orders and Demolition Orders.
    ...... you believe that the dwelling is unoccupied and why you need possession of the dwelling in order to secure that the dwelling becomes occupied. ... . . (i)       Mortgagee in right of the mortgage, has entered and is in possession. . ......
  • Give details of a claim to gain possession of a rented residential property
    • HM Courts & Tribunals Service court and tribunal forms
    County Court forms including the N1 money claim form.
    ......alleged and any other matters. relied upon. Forfeiture. Statement of truth. 9. (a) Delete this paragraph if there is. no underlessee or mortgagee. • This must be signed by you, by your. solicitor or your litigation friend, as. appropriate. Where the claimant is a. registered company or a ......
  • Mortgage pre-action protocol checklist
    • HM Courts & Tribunals Service court and tribunal forms
    County Court forms including the N1 money claim form.
    ......Checklist. 1. Is the possession claim within the scope of the Protocol?. Yes. No. 2. Have you provided the ...No. If No, please explain why. 7. Please explain what steps the mortgagee has taken to check whether there is a tenant. of the borrower in ......
  • Light Obstruction Notice - Rights of Light Act 1959
    • HM Courts & Tribunals Service court and tribunal forms
    Lands Chamber (Upper Tribunal) forms including appeals forms.
    ...... . .          mortgagee(s) in possession . . . . of (address or description of the ......
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