Contributed By Hawkins Hatton Corporate Lawyers Ltd
Provided the lender has secured its mortgage through registration of a legal charge against the property asset with the Land Registry, there are usually no obstacles to seeking to enforcement in the case of a default. A lender will usually enforce the security by the appointment of an LPA receiver who will manage the disposal of the property asset and repayment of the debt (together with cost of realisation) from the sale proceeds.
At the point of enforcement, no further steps can be taken to give priority to the lender’s security above those of other creditors. Priority of security is a matter to be addressed at the time of the lend by virtue of a deed of priority.