The following Property practice note provides comprehensive and up to date legal information covering:
If a property is subject to a mortgage that prohibits leasing without the mortgagee’s consent, then written evidence of consent must be obtained prior to completion of the lease. On the grant of an underlease, mortgagee’s consent in respect of any mortgage over the freehold to the head lease must also be obtained. Check the office copy entries of all relevant titles for evidence of any registered mortgages. The mortgagee will often require sight of the agreed draft lease before granting consent.
If the requisite consent is not obtained, the mortgagee may be able to invalidate the grant of the lease and treat the tenant as a trespasser. However, they can, by mutual consent, create a landlord/tenant relationship between themselves by express words or by conduct. Whether or not such a relationship has been created will be determined on the facts.
If the mortgage contains a term that the mortgagor cannot let the property without the mortgagee’s consent, in the context of a mortgage of residential property created by an owner-occupier, no obligation is implied that in exercising of its right to withhold consent to a letting of the mortgaged property, the mortgagee must act reasonably (City Bank International plc v. Kessler —not available in LexisLibrary).
However, in Commercial First, the court confirmed that in the case
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This Practice Note examines the doctrine of consideration and the key role it plays in English law in determining whether a contract is enforceable.A promise will only be capable of being contractually enforced if it is either made in a deed or made in exchange for something of value, known as
Produced with input from Rebecca Cousin of Slaughter and May on market practice.This Practice Note summarises the rules and guidance in relation to parties who are, or may be presumed to be, acting in concert for the purposes of The City Code on Takeovers and Mergers (the Code). In particular the
Disposal and devolutionThe equity of redemption arises as soon as the mortgage is made. It is an interest in the land which the mortgagor can:•transfer, lease or mortgage inter vivos, or•by will (it passes on intestacy)No cloggingIt is a fundamental principle of a mortgage that there must be no clog
Brexit: The UK's departure from the EU on exit day ie Friday 31 January 2020 has implications for practitioners dealing with provisions in the CPR relevant to cross border matters, including CPR 5.4C (discussed below). For guidance on the impact of Brexit on the CPR, see Cross border
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