Commentary

17 The position of lenders

COMMONHOLD vol 8(1)
| Commentary

17 The position of lenders

| Commentary

17 The position of lenders

Secured lenders will naturally be concerned about the characteristics of commonhold in general, as well as the particular characteristics of the commonhold unit or common parts on which they are lending. Lenders should be aware of the following, in addition to the points mentioned above1:

  1. 17.1

        Lending on the security of a unit:

    1. 17.1.1

          A charge must extend to the whole of a unit2.

    2. 17.1.2

          A chargee cannot sell part only of a unit3.

    3. 17.1.3

          Because the freehold interest in a unit cannot be forfeited by the commonhold association, the lender’s security has priority over

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