Webcast Flashcards
(1472 cards)
1
Q
The function of a security is to guarantee that a loan will be repaid. True or false?
A
True.
2
Q
HB has agreed to lend M £90,000 to help fund her purchase of a house. It wants security for loan in the form of a mortgage. Who will grant the mortgage?
A
M will give a mortgage to the bank.
3
Q
A mortgage will give the bank an interest in the property? True or false.
A
True, it is an interest in land.
4
Q
What is a mortgage?
A
An interest in property granted by a mortgagor to a mortgagee with a provision for redemption.
5
Q
What is redemption?
A
Redemption of a mortgage refers to the process of freeing property from a mortgage by repayment of debt.
6
Q
Who is the mortgagor?
A
The person who grants the mortgage. The borrower.
7
Q
Who is the mortgagee?
A
The person who receives the mortgage. The lender.
8
Q
M (house owner) will be the mortgagee? True or false?
A
False.
9
Q
A full description of a mortgage is, a mortgage is an interest in land with a right of redemption by the mortgagor. Doe M having a right to redeem mean that she can require the bank to transfer its mortgage to a new property she decides to buy one?
A
No, right of redemption means M can require the bank to remove its mortgage when she pays off her loan.
10
Q
The document creating the mortgage also operates as a contract between M and the bank. Is this correct?
A
Yes.
11
Q
How do you create a mortgage?
A
S87(1) LPA 1925 says it involves granting a charge by deed by way of legal mortgage (legal charge).
12
Q
How does a mortgage get it’s legal status?
A
It must be made by deed in compliance with s52 LPA 1925. And it must also be registered where it is granted over a registered title (s27 LRA 2002).
13
Q
By which method can M create a mortgage over her registered estate?
A
By a charge by way of legal mortgage in favour of the bank (s87 LPA 1925).
14
Q
What formalities are required for M to create a legal charge over her title?
A
A deed and registration at the land registry (s27 LRA 2002).
15
Q
What is redemption?
A
It refers to the right the mortgagor has to pay off the debt and to take the pretty back free of the mortgage.
16
Q
What is the legal right to redeem?
A
When a mortgage agreement is made they agree a date when redemption will occur (when the loan will be paid off in full and freed from the mortgage interest). This is the contractual legal right to redeem.
17
Q
What is the function of the contractual date?
A
It’s purpose is to trigger some of the mortgagee’s remedies.
18
Q
What is an equitable right to redeem?
A
It permits the mortgagor to redeem after the repayment date stipulated in the mortgage agreement.
19
Q
The mortgage agreement between and and HBank provides M is to repay the loan by instalments over 20 years. Yet the mortgage agreement also has a clause stating that, notwithstanding any other provisions in this agreement, the debt shall be deemed to have become payable 6 months from the date this mortgage began. Can HB ignore the agreed 20 year repayment period and require M to repay the debt after 6 months?
A
No. It simply allows the bank to repossess and sell the property if M does not keep up with her repayments.
20
Q
Imagine M sells her house for £10,000 more than her debt to HBank. Will the bank be entitled to keep all of the sale proceeds?
A
No, M will be entitled to the £10,000. It is the equity in the property.
21
Q
What is the equity of redemption?
A
It is the name given to the mortgagors various equitable rights.
22
Q
Why does a mortgagee have a right to possession of the mortgaged land?
A
as it is a legal charge it carries a rift to possess the land, which is an immediate rift to possess and arises as soon as the mortgage is made.
23
Q
A mortgagee has the right to possession of the mortgaged property. Does its ability to exercise the right depend on a statutory power?
A
No (s87 LPA 1925).
24
Q
A bank can, in its mortgage agreement, agree that it won’t exercise the right to possession unless the mortgagor breaks one or more of the terms of the agreement. True or false?
A
True, it is usually waived until the mortgagor defaults on the agreement.
25
J owns e registered title to his home. SBank has a registered legal charge and since J has not paid his mortgage instalments for over a year, SBank wasn't to sell the property to recover their loan. However, before they sell it they intend to repossess the property. Why?
Because it will make a sale easier. Most buyers only take a property with vacant possession.
26
How does the mortgagee go about getting the mortgagor to leave. Does it have to go to court?
For residential purposes they will almost always go to court. The mortgagee is protected by s1(2) protection from eviction act 1977, they can only take it if they thought the mortgagee no longer lived there.
27
What does s6 of the criminal law act 1977 state?
It is a criminal offence to use or threaten violence for the purpose of securing entry into premises where someone is opposed to the entry.
28
To which type of property does s2 protection from eviction act 1977 apply?
Only residential property.
29
When will a mortgagee commit an offence under s2 protection from eviction act 1977 if it obtains possession of a residential property without a court order?
Sometimes unless he reasonably believed the occupier had ceased to reside there (Ropaigealach).
30
To which type of property does s6 criminal law act 1977 apply?
Commercial and residential.
31
When is an offence committed under s6 criminal law act 1977?
When violence is threatened to secure entry to property where someone is present who is opposed to that entry.
32
What does peaceable re-entry of a property mean?
That the mortgagee did not obtain a court order before obtaining possession of the property.
33
When a mortgagee goes to court for a possession order, how is the mortgagor given a second chance?
S36 administration of justice act 1970 which gives the court a discretion to delay the mortgagee getting possession. It's intention is to allow the mortgagor breathing space to get his financial affairs in order.
34
What are the three pre-conditions for s36 of the administration of justice act to apply?
- property must be residential
- mortgagee must have applied for court order for possession (s36 not available for peaceable re-entry (Ropaigealach))
- it can't be used if the mortgage has been granted as security for an overdraft
35
What are the powers of the court under s36 administration of justice act 1970?
- adjourn possession proceedings
| - stay or suspend execution of a possession order or postpone the date of delivery of possession
36
Why might the mortgagor want to postpone the bank getting possession?
- to buy time to pay off arrears and get up to speed with repayments
- if he wants to sell the property himself
37
Does the court have jurisdiction under s36 administration of justice act 1970 in the case of commercial property?
No s36 applies only to residential property.
38
A mortgagee has repossessed an empty residential pretty without a court order. The mortgagor finds out and wants to apply to the court under s36 AJA 1970 to postpone possession. Can he?
No (Ropaigealach says it only applies when the mortgagee has applied for a court order for possession).
39
Under s36 AJA 1970 a court can defer granting a possession order, or delay it's execution. If it reasonably considers that the mortgagor is likely to be able to pay sums due in a reasonable period?
Yes (s36 AJA 1970).
40
J owns the registered title of his house. SBank has a legal charge over e property and J has not paid mortgage instalments for over a year. SBank want to sell the house and recover their loan. It has applied to court for a possession order. As J does not want to lose his home he needs to demonstrate to the court he is likely to be able to repay any sums due. Under s8 AJA 1970 what does any sums due mean?
James must clear the arrears and continue to keep up with the new instalment payments as they fall due (s8 AJA 1970).
41
What is the maximum period of time for which the court can postpone possession, given J is seeking to clear his arrears?
The remaining period of the mortgage (Norgan).
42
What is the s36 AJA 1970 requirement being referred to in this quote from Syed. I need say no more than that the prospects of Mr S obtaining work are entirely speculative?
That the mortgagor can show they are likely to be able to pay any sums due in a reasonable period. It needs to be strong evidence of the ability to pay but does not have to be certain (s36 AJA 1970).
43
What is the meaning to pay any sums due under s36 AJA 1970?
That the mortgagor is able to clear the outstanding arrears of instalment payments and keep up with the others as they fall due.
44
What is the function of a security?
To provide some guarantee for payment of debt.
45
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
46
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
47
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
48
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
49
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
50
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
51
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
52
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
53
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
54
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
55
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
56
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
57
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
58
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
59
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
60
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
61
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
62
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
63
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
64
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
65
In the light of the decision in Cheltenham & Gloucester v Krauz, is it correct to say that a court does not have jurisdiction under s91 LPA 1925, if the mortgagee has already started possession proceedings against the mortgagor unless the mortgagor can pay off the whole mortgage debt on completion of a sale of their property?
Yes. Possession can only be suspended if the whole debt can be paid off (s36 LPA 1925). Therefore the property needs to be in positive equity or the mortgagor will have to show evidence of being able to pay the shortfall.
66
Why did the court of appeal in Cheltenham & Gloucester v Krauz disapprove of the decision in Halifax v Barrett?
Because if the power of sale has arisen the mortgagee should be allowed to sell even if the mortgagor also wanted to do so.
67
When will s101 and s103 of the LPA 1925 apply?
It will only apply when the power of sale is not dealt with expressly in the mortgage deed.
68
How does the power of sale arise under s101?
The mortgage must have been made by deed
| The mortgage money must be due (the legal date for redemption)
69
When the power of sale has arisen when can be it be used?
When any of the following conditions have been met:
- m'ee has served notice on the m'or requiring payment of the mortgage money and m'or has failed to pay for 3 months after receiving the notice OR
- interest under the mortgage is 2 months or more in arrears OR
- m'or is in breach of some other covenant in the mortgage deed, example other than repayment of mortgage or interest
70
Does a m'ee need to get leave of the court to sell the house under s101 and s103?
No, confirmed in Horsham v Clark and Beech.
71
Does a m'ee need a court order to sell a property?
No, there is a statutory power of sale under s101 - 103, mortgage agreement will also contain a contractual power of sale. Confirmed in Clark.
72
PBa k has a legal registered charge over As property. He is 2 months in arrears on his mortgage payments. Has the statutory power of sale arisen and become exercisable in favour in the bank?
Yes. S101 says the power arises when made by deed, we know it is as it's a legal charge, the mortgage becomes due after 1 instalment is owing and unpaid (Payne v Cardiff Council). S103 says the power becomes exercisable after one of the three conditions are met, this one is interest due is 2 or more months in arrears.
73
What duty does the m'ee have with regards to power of sale?
General duty to act on good faith and to use its powers for proper purposes. It also has a specific duty of care as to the price it has to obtain.
74
What is meant by the m'ee being under no duty to exercise it's power of sale?
The m'ee can't be forced either to take possession or sell, even if the m'or would benefit from this happening (Silven Properties).
75
Is the m'or under a duty as to when he chooses to sell?
No. The impact of this is that the m'ee can sell immediately, even if delaying the sale would result in a higher price being obtained (Cuckmere Brick).
76
The m'ee must take proper care to get the best price that can reasonably be obtained at the date of sale, it's their duty, what does this entail?
They must inform buyers of matters that improve the price (Cuckmere - planning permission to build on land not advertised).
77
Are there restrictions on who the m'ee can sell to?
Tse Kwong Lam - a sale to an associated person is not necessarily invalid, just reverses the burden of proof and must show he acted in good faith and took reasonable precautions to get the best price. Failed to check auction was best price to get and their company bought the property.
78
What came from the case of Corbett v Halifax?
Even if bad faith is shown by the m'ee, a sale will only be set aside if the purchaser had knowledge that they acted in bad faith. Otherwise the purchaser is protected under provisions in s104(2) LPA 1925.
79
Assume PBank has sold As house to the cousin of the bank manager. Would it necessarily have breached one of its duties of sale towards A?
No, they just have to show they acted in good faith and took reasonable precautions to obtain market value.
80
If PBank took insufficient steps to advertise As property for sale and consequently sold at less than market value, would it necessarily have breached one of its duties of sale towards A?
Yes (Cuckmere Brick).
81
If PBank sold As property without first making some significant repairs to its roof that would have enhanced the property, would e bank have breached one of its duties of sale to A?
No (Silven Properties).
82
If PBank sold As property knowing that the market would improve if it waited for 6 months, would it necessarily have breached one of its duties of sale towards A?
No, there is no duty as to when to sell (Silven Properties).
83
Wi regards to third party interests in a property, following the sale, what rights is the property subject to or free from?
The m'ee sells subject to any interests that were registered at the time it's charge was put onto the register. Free from any interests after it's charge was put on.
84
What must the m'ee do with the sale proceeds?
The m'ee becomes the trustee of the proceeds of sale and must distribute them in accordance with s105 LPA 1925. Must pay any mortgage with priority other than its own, then costs incurred in the sale, then any other mortgage on the property and the remaining to the m'or.
85
PBank had the first registered charge against As property. There's a second charge BBank. PBank has repossessed and sold the property. What is the order of distributing the sale proceeds?
Costs incurred in arranging the sale, itself, anything left to BBank and remaining to m'or.
86
What other rights does a m'ee have?
- ability to sue m'or if the house is sold for less than is owing
- the right to appoint a receiver (s109 LPA 1925)
- foreclosure
87
What is the job of the receiver?
To intercept money arising from the land and pay off any interest or capital owed under the mortgage. Usually appointed for commercial properties.
88
Who would bare the loss if the receiver ran off with the money?
M'or as receivers are treated as an agent of the m'or not the m'ee (s109 LPA 1925).
89
What happens when an order for foreclosure is made?
M'ee becomes the outright owner of the property regardless of the value of the property. They get to retain any equity in the property, example 100k owing, 40k mortgage, keep the outstanding 60k.
90
How can a m'ee bring about foreclosure?
Get an order from the court. The first is an order nisi which tells the m'or to pay the money owed within a specified time or foreclosure will take place (usually 6 months). If it's not paid the order will be made absolute, this frees the owner from any rights.
91
Can the m'or do anything after the absolute has been granted?
They can apply under s91 LPA 1925 to order a sale of the property instead. The advantage being they get any equity from the sale.
92
T has a registered legal charge over her house with VBank. Last year she voluntarily handed over possession of her property to the bank after she realised she could no longer afford the mortgage repayments. The bank sold the cottage at market value but failed to recover £10,000 of the original loan. Could it still sue T for this amount, even though she gave it up voluntarily?
Yes.
93
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
94
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
95
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
96
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
97
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
98
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
99
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
100
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
101
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
102
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
103
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
104
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
105
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
106
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
107
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
108
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
109
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
110
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
111
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
112
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
113
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
114
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
115
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
116
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
117
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
118
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
119
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
120
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
121
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
122
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
123
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
124
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
125
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
126
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
127
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
128
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
129
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
130
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
131
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
132
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
133
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
134
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
135
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
136
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
137
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
138
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
139
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
140
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
141
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
142
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
143
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
144
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
145
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
146
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
147
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
148
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
149
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
150
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
151
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
152
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
153
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
154
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
155
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
156
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
157
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
158
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
159
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
160
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
161
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
162
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
163
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
164
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
165
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
166
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
167
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
168
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
169
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
170
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
171
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
172
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
173
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
174
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
175
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
176
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
177
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
178
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
179
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
180
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
181
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
182
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
183
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
184
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
185
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
186
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
187
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
188
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
189
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
190
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
191
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
192
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
193
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
194
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
195
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
196
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
197
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
198
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
199
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
200
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
201
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
202
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
203
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
204
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
205
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
206
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
207
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
208
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
209
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
210
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
211
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
212
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
213
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
214
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
215
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
216
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
217
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
218
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
219
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
220
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
221
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
222
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
223
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
224
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
225
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
226
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
227
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
228
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
229
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
230
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
231
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
232
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
233
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
234
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
235
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
236
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
237
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
238
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
239
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
240
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
241
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
242
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
243
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
244
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
245
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
246
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
247
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
248
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
249
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
250
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
251
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
252
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
253
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
254
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
255
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
256
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
257
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
258
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
259
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
260
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
261
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
262
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
263
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
264
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
265
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
266
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
267
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
268
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
269
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
270
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
271
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
272
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
273
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
274
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
275
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
276
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
277
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
278
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
279
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
280
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
281
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
282
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
283
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
284
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
285
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
286
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
287
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
288
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
289
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
290
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
291
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
292
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
293
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
294
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
295
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
296
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
297
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
298
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
299
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
300
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
301
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
302
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
303
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
304
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
305
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
306
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
307
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
308
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
309
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
310
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
311
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
312
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
313
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
314
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
315
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
316
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
317
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
318
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
319
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
320
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
321
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
322
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
323
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
324
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
325
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
326
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
327
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
328
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
329
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
330
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
331
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
332
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
333
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
334
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
335
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
336
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
337
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
338
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
339
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
340
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
341
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
342
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
343
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
344
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
345
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
346
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
347
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
348
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
349
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
350
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
351
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
352
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
353
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
354
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
355
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
356
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
357
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
358
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
359
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
360
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
361
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
362
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
363
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
364
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
365
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
366
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
367
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
368
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
369
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
370
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
371
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
372
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
373
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
374
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
375
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
376
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
377
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
378
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
379
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
380
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
381
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
382
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
383
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
384
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
385
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
386
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
387
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
388
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
389
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
390
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
391
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
392
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
393
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
394
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
395
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
396
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
397
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
398
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
399
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
400
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
401
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
402
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
403
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
404
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
405
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
406
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
407
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
408
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
409
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
410
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
411
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
412
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
413
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
414
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
415
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
416
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
417
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
418
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
419
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
420
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
421
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
422
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
423
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
424
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
425
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
426
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
427
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
428
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
429
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
430
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
431
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
432
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
433
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
434
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
435
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
436
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
437
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
438
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
439
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
440
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
441
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
442
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
443
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
444
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
445
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
446
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
447
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
448
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
449
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
450
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
451
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
452
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
453
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
454
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
455
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
456
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
457
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
458
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
459
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
460
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
461
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
462
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
463
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
464
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
465
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
466
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
467
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
468
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
469
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
470
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
471
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
472
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
473
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
474
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
475
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
476
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
477
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
478
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
479
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
480
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
481
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
482
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
483
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
484
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
485
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
486
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
487
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
488
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
489
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
490
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
491
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
492
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
493
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
494
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
495
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
496
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
497
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
498
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
499
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
500
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
501
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
502
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
503
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
504
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
505
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
506
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
507
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
508
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
509
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
510
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
511
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
512
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
513
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
514
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
515
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
516
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
517
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
518
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
519
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
520
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
521
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
522
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
523
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
524
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
525
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
526
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
527
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
528
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
529
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
530
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
531
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
532
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
533
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
534
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
535
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
536
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
537
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
538
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
539
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
540
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
541
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
542
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
543
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
544
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
545
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
546
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
547
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
548
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
549
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
550
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
551
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
552
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
553
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
554
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
555
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
556
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
557
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
558
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
559
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
560
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
561
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
562
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
563
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
564
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
565
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
566
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
567
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
568
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
569
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
570
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
571
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
572
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
573
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
574
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
575
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
576
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
577
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
578
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
579
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
580
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
581
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
582
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
583
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
584
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
585
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
586
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
587
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
588
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
589
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
590
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
591
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
592
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
593
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
594
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
595
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
596
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
597
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
598
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
599
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
600
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
601
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
602
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
603
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
604
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
605
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
606
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
607
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
608
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
609
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
610
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
611
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
612
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
613
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
614
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
615
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
616
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
617
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
618
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
619
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
620
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
621
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
622
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
623
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
624
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
625
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
626
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
627
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
628
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
629
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
630
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
631
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
632
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
633
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
634
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
635
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
636
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
637
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
638
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
639
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
640
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
641
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
642
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
643
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
644
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
645
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
646
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
647
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
648
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
649
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
650
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
651
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
652
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
653
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
654
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
655
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
656
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
657
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
658
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
659
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
660
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
661
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
662
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
663
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
664
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
665
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
666
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
667
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
668
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
669
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
670
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
671
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
672
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
673
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
674
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
675
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
676
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
677
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
678
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
679
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
680
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
681
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
682
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
683
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
684
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
685
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
686
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
687
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
688
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
689
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
690
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
691
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
692
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
693
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
694
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
695
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
696
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
697
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
698
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
699
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
700
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
701
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
702
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
703
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
704
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
705
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
706
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
707
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
708
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
709
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
710
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
711
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
712
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
713
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
714
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
715
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
716
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
717
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
718
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
719
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
720
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
721
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
722
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
723
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
724
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
725
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
726
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
727
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
728
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
729
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
730
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
731
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
732
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
733
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
734
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
735
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
736
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
737
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
738
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
739
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
740
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
741
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
742
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
743
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
744
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
745
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
746
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
747
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
748
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
749
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
750
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
751
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
752
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
753
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
754
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
755
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
756
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
757
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
758
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
759
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
760
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
761
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
762
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
763
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
764
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
765
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
766
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
767
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
768
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
769
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
770
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
771
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
772
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
773
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
774
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
775
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
776
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
777
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
778
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
779
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
780
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
781
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
782
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
783
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
784
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
785
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
786
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
787
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
788
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
789
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
790
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
791
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
792
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
793
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
794
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
795
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
796
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
797
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
798
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
799
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
800
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
801
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
802
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
803
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
804
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
805
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
806
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
807
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
808
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
809
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
810
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
811
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
812
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
813
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
814
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
815
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
816
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
817
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
818
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
819
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
820
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
821
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
822
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
823
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
824
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
825
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
826
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
827
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
828
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
829
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
830
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
831
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
832
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
833
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
834
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
835
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
836
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
837
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
838
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
839
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
840
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
841
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
842
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
843
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
844
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
845
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
846
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
847
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
848
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
849
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
850
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
851
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
852
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
853
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
854
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
855
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
856
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
857
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
858
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
859
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
860
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
861
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
862
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
863
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
864
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
865
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
866
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
867
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
868
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
869
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
870
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
871
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
872
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
873
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
874
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
875
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
876
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
877
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
878
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
879
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
880
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
881
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
882
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
883
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
884
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
885
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
886
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
887
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
888
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
889
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
890
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
891
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
892
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
893
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
894
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
895
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
896
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
897
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
898
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
899
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
900
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
901
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
902
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
903
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
904
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
905
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
906
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
907
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
908
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
909
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
910
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
911
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
912
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
913
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
914
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
915
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
916
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
917
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
918
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
919
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
920
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
921
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
922
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
923
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
924
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
925
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
926
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
927
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
928
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
929
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
930
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
931
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
932
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
933
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
934
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
935
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
936
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
937
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
938
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
939
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
940
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
941
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
942
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
943
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
944
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
945
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
946
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
947
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
948
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
949
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
950
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
951
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
952
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
953
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
954
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
955
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
956
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
957
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
958
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
959
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
960
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
961
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
962
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
963
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
964
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
965
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
966
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
967
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
968
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
969
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
970
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
971
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
972
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
973
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
974
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
975
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
976
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
977
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
978
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
979
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
980
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
981
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
982
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
983
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
984
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
985
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
986
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
987
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
988
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
989
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
990
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
991
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
992
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
993
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
994
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
995
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
996
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
997
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
998
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
999
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1000
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1001
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1002
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1003
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1004
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1005
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1006
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1007
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1008
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1009
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1010
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1011
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1012
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1013
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1014
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1015
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1016
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1017
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1018
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1019
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1020
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1021
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1022
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1023
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1024
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1025
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1026
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1027
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1028
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1029
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1030
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1031
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1032
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1033
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1034
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1035
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1036
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1037
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1038
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1039
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1040
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1041
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1042
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1043
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1044
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1045
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1046
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1047
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1048
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1049
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1050
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1051
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1052
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1053
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1054
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1055
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1056
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1057
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1058
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1059
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1060
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1061
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1062
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1063
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1064
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1065
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1066
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1067
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1068
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1069
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1070
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1071
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1072
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1073
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1074
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1075
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1076
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1077
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1078
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1079
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1080
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1081
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1082
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1083
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1084
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1085
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1086
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1087
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1088
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1089
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1090
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1091
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1092
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1093
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1094
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1095
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1096
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1097
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1098
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1099
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1100
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1101
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1102
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1103
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1104
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1105
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1106
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1107
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1108
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1109
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1110
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1111
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1112
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1113
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1114
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1115
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1116
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1117
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1118
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1119
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1120
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1121
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1122
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1123
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1124
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1125
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1126
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1127
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1128
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1129
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1130
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1131
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1132
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1133
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1134
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1135
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1136
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1137
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1138
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1139
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1140
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1141
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1142
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1143
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1144
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1145
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1146
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1147
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1148
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1149
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1150
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1151
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1152
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1153
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1154
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1155
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1156
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1157
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1158
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1159
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1160
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1161
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1162
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1163
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1164
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1165
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1166
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1167
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1168
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1169
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1170
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1171
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1172
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1173
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1174
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1175
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1176
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1177
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1178
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1179
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1180
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1181
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1182
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1183
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1184
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1185
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1186
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1187
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1188
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1189
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1190
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1191
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1192
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1193
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1194
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1195
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1196
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1197
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1198
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1199
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1200
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1201
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1202
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1203
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1204
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1205
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1206
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1207
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1208
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1209
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1210
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1211
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1212
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1213
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1214
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1215
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1216
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1217
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1218
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1219
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1220
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1221
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1222
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1223
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1224
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1225
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1226
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1227
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1228
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1229
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1230
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1231
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1232
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1233
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1234
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1235
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1236
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1237
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1238
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1239
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1240
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1241
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1242
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1243
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1244
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1245
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1246
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1247
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1248
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1249
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1250
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1251
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1252
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1253
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1254
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1255
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1256
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1257
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1258
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1259
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1260
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1261
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1262
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1263
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1264
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1265
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1266
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1267
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1268
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1269
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1270
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1271
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1272
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1273
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1274
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1275
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1276
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1277
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1278
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1279
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1280
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1281
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1282
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1283
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1284
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1285
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1286
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1287
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1288
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1289
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1290
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1291
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1292
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1293
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1294
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1295
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1296
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1297
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1298
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1299
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1300
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1301
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1302
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1303
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1304
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1305
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1306
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1307
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1308
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1309
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1310
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1311
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1312
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1313
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1314
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1315
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1316
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1317
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1318
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1319
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1320
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1321
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1322
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1323
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1324
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1325
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1326
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1327
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1328
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1329
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1330
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1331
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1332
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1333
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1334
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1335
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1336
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1337
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1338
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1339
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1340
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1341
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1342
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1343
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1344
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1345
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1346
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1347
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1348
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1349
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1350
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1351
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1352
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1353
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1354
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1355
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1356
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1357
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1358
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1359
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1360
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1361
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1362
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1363
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1364
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1365
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1366
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1367
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1368
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1369
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1370
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1371
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1372
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1373
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1374
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1375
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1376
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1377
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1378
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1379
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1380
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1381
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1382
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1383
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1384
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1385
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1386
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1387
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1388
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1389
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1390
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1391
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1392
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1393
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1394
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1395
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1396
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1397
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1398
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1399
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1400
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1401
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1402
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1403
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1404
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1405
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1406
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1407
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1408
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1409
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1410
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1411
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1412
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1413
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1414
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1415
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1416
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1417
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1418
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1419
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1420
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1421
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1422
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1423
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1424
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1425
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1426
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1427
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1428
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1429
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1430
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1431
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1432
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1433
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1434
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1435
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1436
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1437
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1438
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1439
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1440
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1441
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1442
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1443
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1444
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1445
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1446
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1447
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1448
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1449
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1450
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1451
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1452
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
1453
What is the meaning of the word reasonable period for paying off mortgage arrears?
The whole remaining length of the mortgage term but they must take these into consideration:
- ability of mortgagor to make the payments now and in the future
- likely duration of any temporary financial difficulty
- reason for the arrears
- period remaining of the original mortgage
- value of property measured against the amount owing
1454
What is likely intended to mean with regards to repayment of arrears?
There must be a realistic chance, this must be supported by firm evidence of a detailed budget.
1455
When the mortgagor wants to sell the property himself, what is meant by any sums due?
Repayment of the whole mortgage debt.
1456
What is the meaning of the word likely in terms of selling the house himself?
Mortgagor has to show evidence in support of a sale occurring which will clear the debt.
1457
What is a reasonable period in terms of the owner selling the house himself?
In National & Provincial Building Society v Lloyd it was indicated this could mean up to 1 year but no more. Bristol & West v Ellis said although 1 year was the maximum there was no fixed rule.
1458
If J decided he wanted to ask the court to postpone possession to enable him to sell his property, what is the maximum period of time he is likely to be given to achieve the sale?
6 - 12 months (Bristol & West v Ellis).
1459
In the case of Birmingham Building Society v Caunt, it was recognised that the court had an inherent power to postpone possession. However the court suggested that it could do so only for a very short period of around 28 days. Would a mortgagor ever apply to court under this jurisdiction rather than under the more generous jurisdiction of s36 AJA 1970?
Yes, it would be used by those whom s36 AJA 1970 was not available (communal mortgagor or residential mortgagor whose property has been peaceably repossessed).
1460
Can the court order a sale notwithstanding the lender will be left out of pocket?
S91 LPA 1925 does give a court power to order a sale against the wishes of the mortgagee.
1461
What point did the judge make in the case of Cheltenham and Gloucester v Krauz with regards to s91(2) LPA 1925?
It should only be used by a court in exceptional circumstances. If a mortgagee also wanted a sale they should be allowed to control it to prevent the mortgagor asking too high a price to put off the sale.
1462
What was also said in Krauz about when a mortgagee sought possession under s36 but the mortgagors made an application under s91 to sell themselves?
If the mortgagor wanted to defer possession to sell property himself where it was in negative equity he had to show he had private means to clear the shortfall otherwise s36 could not be used.
1463
What does it mean to say a property is in negative equity?
The market value of the property is less than the mortgage debt.
1464
J wants to sell his house worth £150,000. There is a legal charge over the property in favour of Glass Bank securing a debt of £200,000. M has offered to buy the house but J has no means of payi off the £50,000 that would remain owing. M is not willing to take over this debt. Would J need the consent of the bank to sell?
Yes, as the bank has no obligation to remove the legal charge if it is not cleared.
1465
J is up to date with his mortgage repayments and has offered to repay the outstanding £50,000 after the sale. GBank won't agree to remove the legal charge. Do the courts have jurisdiction to require GBank to remove the charge from the property if the sale went ahead?
Yes (s91 LPA 1925 allows them to do this; Palk).
1466
Which of the following correctly describes the situation that arose in the case of Palk?
- both the mortgagee and the mortgagor wanted to sell the property
- only the mortgagor wanted to sell the property
Only the mortgagor wanted to sell the property.
1467
In Palk the property was in negative equity and the mortgagee suggested the property should be rented out until the market improved. True or false?
True.
1468
In Palk, the court used its powers under s91 LPA 1925 to order a sale of the property against the wishes of the mortgagee. It said that it needed to do so to avoid manifest unfairness. What did they mean by that?
The mortgagee's proposal to rent the property would have resulted in the debt significantly growing each year with no certainty when the market would improve and return the property to positive equity.
1469
What is the situation that arose in Barrett v Halifax?
Both the mortgagor and the mortgagee wanted to sell.
1470
In the case of Barrett was the mortgagor in arrears with their mortgage repayments?
Yes.
1471
In the case of Barrett, if the mortgagee and mortgagor both agreed about a sale going ahead why did the mortgagee object to the Barrtt's selling the property?
It wanted to control the sale given it's power of sale had arisen as a result of the Barrett's mortgage arrears.
1472
In the case of Barrett why did the court order a sale under s91 LPA 1925 against the wishes of the mortgagee?
Because an unoccupied property will get a better sale price than a repossessed property.
