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Mortgages LPA 1925 S 91 - Coggle Diagram
Mortgages LPA 1925 S 91
the mortgagee (the lender) obtains a charge over the mortgaged property and has the power of sale in respect of the estate which has been so charged (ss.87-108)
If the mortgage pertains to an unregistered estate, the mortgage must be created by a deed (s.52(1)).
(Parker-Tweedale v Dunbar Bank plc [1991]: once their power of sale has accrued, the mortgagee is prima facie entitled to exercise it for their own purposes at any time of their own choice
under s.91(2):a mortgagor can set a date for sale that is earlier than the mortgagee would have intended.
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Summary
This does not however extinguish the debt obligations. H and W in this case still had to pay the debt owing.
Foreclosure:
leaves the entire value of the mortgaged land in the hands of the mortgagee, thereby taking from the mortgagor any of their equity in the land
Foreclosure is only available on an application to the court (ss.88(2), 89(2)); rare nowadays
S.91(2) provides a kind of lifeline to mortgagors who are otherwise finding it difficult to escape a mortgage
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