Land Law Essay Example | Topics and Well Written Essays - 1250 words

Land Law - Essay Example Lenders are required to send a reminder notice or letter of demand if payments are defaulted1. If the payment default is not corrected as expected in the demand letter, the lender should send a default notice, making it clear how he will remedy the default to allow the borrower a maximum period of 30 days as per the date of the note to do so. When a mortgager of residential property fails to repay his mortgage, he will find it difficult, though not impossible to prevent the mortgage from recovering the property and selling it. Mortgage in English law is resulted from two different influences. Its form and origin belong to the common law; the constraints by which it is made to act as security only, belong to the courts equity. The English law states that, if the mortgagor did not pay on the contractual date, he at one time can forfeit the mortgagee and can be sued in contract to for money repayment. Accordingly, the legal right to redeem is very limited. The mortgagee’s right t o possess the residential property is exactly what is expected. By virtue of how legal mortgages are created, the lender is considered as having an estate in the residential land, thus he is given an immediate right to possession instantly the ink dries on the mortgage. Notably, the mortgagee may posses the property at any moment even when the mortgage is not in default, basing only to the provision contrary in statute or in the mortgage itself. In the usual course of events, this right will not be exercised by the mortgagee and will be content to permit the mortgagor to continue possessing the property so long as the terms of mortgage are adhered to and payments are done as agreed. Indeed, the mortgagee could have promised in the contract not to seek possession except if the mortgagor breaches any other obligation or defaults repaying. If this happens, possession may be granted in virtue of the mortgagee’s right, not in virtue of a solution to be requested from the court2. I n this context therefore, mortgaged property can only be taken and sold basing on the procedure of mortgage creation, the rights of the lender, and the rights of the mortgagor. How a mortgage is created Before property is taken and sold, the mortgagee and the mortgagor should both consider the way this mortgage was created. The first step is to involve a mortgage advisor to offer an agreement in principle or approval. This illustrates what the provider will likely be willing to lend, basing on specific terms and conditions. Such a step can be helpful when a mortgagor has chosen his mortgage and the property is to be offered. A mortgagor should never be tempted to overstate his income since he can end up with a mortgage he can not afford to repay. To legalize a mortgage, a licensed conveyance or a conveyance solicitor must be included in this creation so that he can draw up contract, make local searches, and carry out other legal paperwork. Some lenders may refer a mortgage to a spec ified solicitor but a personal recommendation may be a choice. After this, it is important that the property is valuated3. The lender will often have the prosperity valued to ensure that it is worth the agreed upon price. If it’s not, then it will affect the amount to be lent. It is therefore advisable for a mortgagor to get his own survey done as well or to upgrade the valuation of the lender’s survey into a more detailed one. After mortgage offer, the mortgagor’s solicitor can set a date for contract exchange with the seller’s solicitor. A percentage of the buying price is paid by the mortgagor at this time, as a non-refundable deposit and entrust to paying the rest upon the agreed completion time, that is, when he owns the property. A mortgage can be created over a