Who is mortgagor/mortgagee?
- mortgagor = borrower
- mortgagee = lender
Who is debtor/creditor in scotland?
- debtor = borrower
- creditor = lender
What is the mortgage deed known as in Eng/Wales/NI and Scot?
- Eng/Wales/NI = legal charge
- Scotland = standard security
What do the mortgage conditions/deed contain?
- borrowers covenants
- rights of lender
Mortgage contract must be?
- in writing
- signed and dated
- witnessed
- sealed
What are the two conveyances that take place when buying a property?
1) Legal ownership of land from seller to new owner
2) created rights over land by the owner in favour of lender
What is point of no return?
- Eng/Wales/NI = exchange of contracts
- Sotland = conclusion of missives (fixed offer/closed bid accepted)
What is the date the mortgage comes into effect known as?
- Eng/Wales/NI = completion date
- Scotland = settlement date
What are the three ways a mortgage can be discharged?
1) Agreement
2) Performance (pays back all monies)
3) Breach
What is all monies clause?
- Enables lender to rely on security for the loan or any other securities held for any other borrowings by customer
What is equity of redemption?
- Right to redeem a loan at any time
What is difference between support/unsupported guarantors?
- Supported = individual offering security (surety)
- Unsupported = relies on promise to pay
What are the conditions for leaseholder to buy freehold interest?
- Original lease > 21 years
- Must be resident two years or more
- At least one half of qualifying tenants must agree
What do commonhold owners own?
Building, common areas and unit-owners own each individual flat
Conditions for commonhold/setting up company to manage building?
- Building self-contained inc at least two flats
- 2/3 flats are held by leaseholder with term > 21 years
- No more than 25% of internal floor area is for non residential use
What is an easement?
- Rights in favour of one piece of land over another eg right of way/right to park
What is a positive covenant?
- conditions attached to title requiring owner to carry out certain actions
What is a restrictive covenant?
- conditions attached to title preventing owner from doing certain things
How to avoid danger of overriding interest?
- Requiring any person > 17 who will not be party to mortgage, to sign a consent to mortgage form
What is absolute tenure in Scotland?
- similar to freehold
What are rights/obligations of title known as in Scotland?
- real burdens
What is sequestration?
- scottish term for bankruptcy
When can a person opt for self-sequestration?
If they owe more than £1500
If lender has served; charge for payment + 14 days notice elapsed or statutory demand and 21 days have elapsed or an earnings arrestment
When is discharge granted for sequestration?
3 years
