Land Law UK Assignment Example | Topics and Well Written Essays - 1500 words

Land Law UK - Assignment Example This will ensure that there will be no party in the agreement that goes to a loss. Under the law, the bank as the mortgagee would exercise the following remedies against the borrowers here referred to as the mortgager. The mortgager while going through with their repayments for the property owns title over the property, but: the mortgagee is entitled to the following rights relating to the title of the mortgager. One of such is the right to make perfect the title where in case the mortgagee is the second mortgagee after the first one, he buys the first mortgagee and hence becomes the first. Secondly, the mortgager has the right to improve the property as a representation for the security for the loan but such expenditure are required to be reasonable compared with the amount borrowed so that repayment is not hampered (Stroud, 2013). In addition, it is normally the order of the day that the mortgager receives back the substance of the mortgage upon redemption of the mortgage. Therefore, if the mortgagee makes more expenditure than is reasonable then the mortgagee is not entitle to claim reimbursements for the money spent. This is as in the case of South well v Roberts (1940) 63 CLR 581. In the event that the mortgager does not meet the obligation to repay as in our case; then the bank has two major remedies. First, this is the right of the bank to exercise the power of sale as stipulated in the mortgage document as well as the statutes. Secondly, the mortgagee has the remedy of foreclosure as stated in section 100 of the Conveyancing Act. Under the old system, foreclosure can only be effected by court order while foreclosure under the Torrens system, it is required that an application is made to the registrar general to make an order of foreclosure under section 61 of the law. In the event of mortgage defaulting all mortgages, have the power