header-logo header-logo

Mortgage receivership: transfer challenges

31 March 2021 / Cecily Crampin , Tricia Hemans
Issue: 7927 / Categories: Features , Property
printer mail-detail
44716
Post-Maymask, Cecily Crampin & Tricia Hemans consider the effect of mortgage receivership on company directors’ powers to deal with property
  • Ghai v Maymask (228) Ltd [2020] UKUT 293 (LC): does the appointment of a receiver act to suspend the director of a company borrower’s authority to effect a valid sale of the property so that only the receiver can sell or so that the borrower can only sell with the receiver’s consent?

In a typical sale of mortgaged property, the owner of the property sells it to a buyer in his own name and then uses the purchase money provided by the buyer to pay off the mortgage so that the property acquired by the buyer is free of the mortgage. But what about the situation where a receiver has been appointed before the sale? Does the borrower retain the ability to execute a valid transfer to the buyer?

It is clear that the borrower has a power of sale by reason of his ownership of and registration

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Charles Russell Speechlys—Matthew Griffin

Charles Russell Speechlys—Matthew Griffin

Firm strengthens international funds capability with senior hire

Gilson Gray—Jeremy Davy

Gilson Gray—Jeremy Davy

Partner appointed as head of residential conveyancing for England

DR Solicitors—Paul Edels

DR Solicitors—Paul Edels

Specialist firm enhances corporate healthcare practice with partner appointment

NEWS
The proposed £11bn redress scheme following the Supreme Court’s motor finance rulings is analysed in this week’s NLJ by Fred Philpott of Gough Square Chambers
In this week's issue, Stephen Gold, NLJ columnist and former district judge, surveys another eclectic fortnight in procedure. With humour and humanity, he reminds readers that beneath the procedural dust, the law still changes lives
Generative AI isn’t the villain of the courtroom—it’s the misunderstanding of it that’s dangerous, argues Dr Alan Ma of Birmingham City University and the Birmingham Law Society in this week's NLJ
James Naylor of Naylor Solicitors dissects the government’s plan to outlaw upward-only rent review (UORR) clauses in new commercial leases under Schedule 31 of the English Devolution and Community Empowerment Bill, in this week's NLJ. The reform, he explains, marks a seismic shift in landlord-tenant power dynamics: rents will no longer rise inexorably, and tenants gain statutory caps and procedural rights
Writing in NLJ this week, James Harrison and Jenna Coad of Penningtons Manches Cooper chart the Privy Council’s demolition of the long-standing ‘shareholder rule’ in Jardine Strategic v Oasis Investments
back-to-top-scroll