Rights of the Mortgagee in Modern Law Relating to Mortgages

This article critically analyzes the extent to which the rights of the mortgagee have been eroded in favor of protection of the mortgagor in the modern law relating to mortgages. It discusses the Law of Property Act 1925, different types of mortgages, and the Administration of Justice Act 1970. The case of Cheltenham & Gloucester Building Society v Norgan is also examined.

Land Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Critically analyses the extent to which the rights of the mortgagee have been eroded in favour
of protection of the mortgagor in the modern law relating to mortgages...................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Land laws are the laws which deal with those aspects that covers regulations related to
law used in context of land. Further these laws consists of rules which is used for governing of
land and things attached with it. This includes trees, buildings and property upon which it is
build. Also land laws makes task of solving disputes in relation over land solved in appropriate
manner. Such laws are codified legal rules which deals upon issues related with land and
property. Land laws provide concrete framework to be used in relation to management of various
aspects like mortgage, selling of property and giving property on lease. These laws covers wider
scope regarding property related issues. Also nature of such laws are dynamic as they have
tendency to impact property related matters. In this file case law Gloucester Building Society v
Norgan is been covered in relation to mortgage rights.
TASK
Critically analyses the extent to which the rights of the mortgagee have been eroded in favour of
protection of the mortgagor in the modern law relating to mortgages
Law of Property Act 1925
Transfer of land and property in earlier time used to be very complexed process. Often
buyer and seller of particular property faced lot of problems regarding it. Earlier interests of
parties were not safe when dealing upon property. Also the laws involved long process and
sometimes transfer to new owner takes long time which made transferee loss interests within
property. Sometimes existing interests (like for example the right to cross someone else’s land to
get to your property) had to be renegotiated, while occasionally interests in a property were not
discovered until long after a sale, meaning that at times money is impossible to guarantee about
what property has been purchased. So, in order to remove flows from these laws Law of
property act 1925 was introduced and various other property related reforms were made within
the act which essentially clarifies interest of property over rights and interest transferred across
owner. This has given wider picture by making process related to transferring through any
medium made more easy and effective in appropriate manner. Also in the act wide range of
legislations has been introduced which made contradictions and loopholes covered in more
efficient manner. Various concepts of previous laws has been taken like concept of transferring
property done through mortgage, sales, lease and will or through gift has been allowed within the

act. One of the major concept within law of property act is that simplification is done with
system related to ownership of property. Under new law segregation has been made by providing
rights in relation over various modes for transferring property. In this legal estate is been given
upon each legal estate through collection of rights and responsibility within it. In modern
Landlord and Tenant act formed to deal with issues related with tenants and landlord in UK. Still
the property laws is introduced in making transfer related to property handled in more effective
manner. Further in present scenario property law has been used for making property relate
disputes handled as per rules and regulation that has been mentioned within the act of property
law.
Mortgage: In English law method of raising capital with the help of loan through bank,
lender or any other financial assistance. Under it lender is mortgagee and borrower is mortgagor.
As per this some security has to be kept which can be taken after debt and interest is paid. In case
debts is not been recovered then under such circumstances property kept for mortgaged can be
used as security and also various provisions are there which makes debt recovery done in legal
manner. It is one of the most important part of English property law. Under this common law,
statutory and regulatory amendments have been made for protecting mortgagor at the time of
commencing such agreement. English law has restrict the process which is related to possession
of property within event of default. Third part of the laws defines about duties that is related to
mortgagees over price that is paid at the time of selling property. Laws in relation for mortgages
of land has allowed mortgage of almost all kind of property weather movable or immovable.
Mortgage over personal property is been mentioned under chattel mortgages and mortgage over
personal property expressed for operating through assignment. Various separate statutory
authorities were formed regarding mortgage of ships within Merchant Shipping Act 1995. Then
mortgage of aircraft and for mortgaging of all parts related to it has been decided under Cape
Town Convention. The term mortgage means that security interest which are indirect in relation
over commercial nature of corporate. It make sure lending are done within more secured manner
through legal agreements.
There are various kinds of mortgage that has been explained as follows:
Fixed rate mortgages: In this kind of mortgage interest rate paid is going to remain
constant through out the mortgage period which has been decide by parties.

Variable rate mortgages: The mortgage makes interest rate change at any time that is
why savings requires to be made upon paying mortgage payment. In this main focus if related to
change of interest rate from time to time.
Discount mortgages: Such mortgage makes lender's attain discount as per standard
variable rate and is valid up to particular period of time which two to three years.
Tracker mortgages: Under such mortgage there is direct relation with the interest rate
that is been put by Bank of England. In this basic rate has been set by bank. It has shorter time
period which is typically two or five years fro the time lender has offer track records for
mortgage till the time full payment is done.
Capped rate mortgages: Rate of moves is normally with the lender which is based upon
standards variable rate. In it rate can rise over certain level.
Offset mortgages: As per this mortgage savings and current account has been made over
mortgage which makes payment done upon monthly basis but savings makes mortgage cleared
early and on time.
The law governing about different rights of mortgagees for protecting them from the
situation when they are not able to repay it. There are various rights which has been given
regarding mortgage and they are as follows:
1. Right to foreclosure
The right is mainly focused upon limiting mortgagor from exercising right of redemption
and allows it to use for conditional sales or in condition of anomalous mortgage.
2. Right of suit for sale
This right is based upon completely barring from using right to redemption. This right
allows owner of property to redeem it at any time possible. Under such case mortgagee becomes
owner of property and can sell it for recovery of sales. This right bis used for making recovery
possible in appropriate manner possible.
3. Right to sue for mortgage money
The right to sue for mortgage money gives the mortgagee the right to sue in case of
certain conditions. An example is if the mortgagor fails to provide adequate security to the
property, due to which it is partially or completely destroyed.
4. Right to sale without court intervention

The right allows courts intervention which makes mortgage sell property without making
informing courts but is allowed only in certain condition. Under such condition mortgagor
defaults services through payment done after three months before notice is served in relation
over mortgage that is done.
5. Right to spend money
This makes spending of money which allows mortgagee for spending money over
property in order to protect it form various things like preservation of mortgage property,
forfeiture, sale or damage. In it money depend by mortgage over money due which makes
entitling over reeving interest upon rates applied over principal money.
6. Right to the accession of the mortgaged property
Rights of accession over mortgage property makes mortgagee retain ant kind of
additional property used for recovering the debt if not full filled by security. For example
mortgagor has build a building on land that has been mortgaged the it can be retain by mortgagee
as security in relation to loan.
7. Right of possession
The mortgagee also has the right of possession under which an ownership is been given
to mortgagee. Regarding this certain rules dose not apply with it.
Administration of justice Act 1970
The act has been formed within parliament of UK and made major change within section
11(1) of Debtors Act 1869. This mentions about circumstances which makes debtors sent to
prison. Also Section40(2) of the act includes various provisions in relation over minacious
creditors and debt collecting agencies from harassing debtor. Under certain things are include
which has been given as follows:
 Excessive demands for payment
 Falsely claiming that criminal proceedings will follow after failing to pay a debt
 Falsely pretending to be officially authorised to collect payment
 Producing false documents claiming to have some official status that they do not have
Cheltenham & Gloucester Building Society v Norgan
Facts of the case Mrs Norgan borrowed £90,000 over interest of 22 years which is
secured upon family farmhouse. Also in the case rates were fluctuating as the debt has to be paid
to Bank of England. The possession was transferred to them by the bank but they stayed upon

several occasion which made them build society over land provided to them. In this case section
36 of Administration Justice Act 1970 within the amendments made in it. This says that owner-
occupier mortgage makes borrowing through facing various kinds of issues related that is related
over income difficulties which made sustainable payment plan based over evidences presented.
In this proportionate over expected interests that has to be paid over mortgage. Also spare high
cost and inconvenience that is been borrowed by lender. In this court held after checking the
facts that court is merely spread over repayments of areas. Panel of judges made it clear that in
mortgage affordable payment plan within mortgage is allowed. This makes issuing of various
criteria developed in relation to various kinds of methods which made mortgage more effective
and debts recovery possible in more efficient manner. Court of appeal held in the case that
within instalment of mortgage over reasonable period which means remaining period mortgage
requires to pay. As peer the case mortgage in relation to instalment formed in 1986 is repayable
up to 22 years. Finally court held that Mrs Norgan is been entitled for making protection under
section 8 which shows that instalment made by 2008. Then court said that no discretion should
be exercise when there is lack of realistic likelihood upon current instalments paid.
Finally court laid down various kinds of landmark points which laid down foundation for
modern mortgage agreements. Also case showed that why new amendments requires for making
acts developed in more strong manner which made property act of 1925 amended. It made new
provision upon dealing with the transfer of property through mortgage formed. Also in lead over
forming of new land laws which made both tangible and intangible property transferred in more
organized manner. This is how modern code of property act 2013 has been formed in relation to
mortgage.
CONCLUSION
From the above discussion it can been seen that land laws are the laws which deal upon
various kinds of issues which is related upon using land in legal manner. Further the laws cover
about all the rights that can be posses upon land by an individual. Also the laws are read in
relation over property law for making transfer of property more real. In the file transfer of
property act 1925 is discussed. Then mortgage and it kinds explained with Administration of

justice Act 1970. The act has attained more relevance after judgement passed within Cheltenham
& Gloucester Building Society v Norgan. Also in the end relation is explained about the case.

REFERENCES
Books and Journals
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Of The Land And Invalidates California Alien Land Law' (2020) 2 Stanford Law
Review
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Digest
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Zoning Digest
G. L, 'Public Land Law: Jurisdiction Of Land Department' (2017) 3 California Law Review
Kim N, 'The Footsteps Of Administrative Law And Public Land Law - Focusing On Land
Planning Law -' (2016) 87 Korean Public Land Law Association
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Smith A, and McDermott T, 'Deskbook On Land Titles And Land Law' (2021) 54 Michigan Law
Review