Q&As

If a deed, which is registered as a legal charge on a property provides for the payment of interest, is there any time limitation on how far the mortgagor can go back and claim unpaid interest?

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Produced in partnership with Kate Andrews of Hamlins
Published on LexisPSL on 24/06/2019

The following Property Disputes Q&A Produced in partnership with Kate Andrews of Hamlins provides comprehensive and up to date legal information covering:

  • If a deed, which is registered as a legal charge on a property provides for the payment of interest, is there any time limitation on how far the mortgagor can go back and claim unpaid interest?

When considering how long you are able to make a claim pursuant to a particular document, it is important to determine whether the document you have entered into is a contract written under hand (simple contract), or a deed.

There are a number of differences that exist between the two, namely:

  1. that a deed cannot be entered into orally

  2. it must make clear that it is intended to be a deed, usually by inserting specific wording

  3. unlike with a simple contract, a deed does not require there to be consideration in order to be valid

  4. in relation to the question at hand, perhaps the most notable difference between the two is the statutory limitation period in which a claim must be brought

The limitation period for simple contracts is governed by section 5 of the Limitation Act 1980 (LA 1980). This section states that ‘an action founded on simple c

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