Q&As

Is it correct that a lender can execute a debenture under hand only, and not as a deed, in order to create a valid disposition of land under section 1(2) Law of Property (Miscellaneous Provisions) Act 1989?

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Published on LexisPSL on 07/01/2016

The following Banking & Finance Q&A provides comprehensive and up to date legal information covering:

  • Is it correct that a lender can execute a debenture under hand only, and not as a deed, in order to create a valid disposition of land under section 1(2) Law of Property (Miscellaneous Provisions) Act 1989?

Is it correct that a lender can execute a debenture under hand only, and not as a deed, in order to create a valid disposition of land under section 1(2) Law of Property (Miscellaneous Provisions) Act 1989?

It is necessary for a debenture to take the form of a deed in order to ensure that the lender has an legal or equitable mortgage, see the commentary (attached) from Fisher and Lightwood on Mortgages and other securities generally and Mortgages of freehold land, and can use the statutory power of sale under the Law of Property Act 1925.

The commentary from Lingard's Bank Security Documents explains the requirements for such a document to be executed as a deed in: Deeds and their execution, and notes:

'It is essential to know whether a document is a deed not least because the Law of Property Act 1925, s 52 enacts that:

'(1) All conveyances of land or of any interest therein are void for the purpose of conveying or creating a legal estate unless made by deed.'

Similarly, dealings in registered land must be by deed in accordance with the requirements of the Land Registration Act 2002 and the Land Registration Rules 2003, r 206(3) and Sch 9. Dealings in land other than by deed will only create equitable

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