Q&As

Does a legal chargee have to obtain a court order to enforce an order for sale? The chargor is not in arrears but the whole debt will fall due shortly. Does the chargee have to follow the pre action protocol for possession claims based on mortgage arrears?

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Published by a ½Û×ÓÊÓƵ Property Disputes expert
Published on: 20 January 2016
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Statutory power of sale—can it be exercised without a court order if residential property?

If the charge is by deed the Chargee will have the statutory powers re the power of sale under section 101 of the Law of Property 1925 (assuming that those powers have not been limited). See our Practice Note Mortgages and land—an introduction to mortgages and legal charges over land for more information.

In principle, the Mortgagor does not need to take back possession in order to exercise their power of sale. However, from a practical perspective possession is usually sought as a first step in exercising a power of sale to 'enable the mortgagee to realise a better price for the property by being able to offer Vacant Possession when selling under the statutory or an express power of sale'.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Chargee definition
What does Chargee mean?

The person who has the benefit of a charge, usually a financier.

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