This is the question:
Two years ago Rees bought a freehold registered property called Lovenest in Watfield for £400,000. He provided £200,000 deposit from the sale of his previous property. He managed to secure a mortgage for £200,000 from the Grantwill Bank. Rees and his pregnant wife moved into Lovenest.
Recently Rees’ retailing business is not doing well and he is in arrears of his mortgage. He learned that he is a beneficiary under a trust, his entitlement (which should be more than sufficient to pay off his liabilities under the mortgage) becoming due upon the death of an elderly and ill aunt. Meanwhile, the Grantwill Bank informed him that no mortgage payments have been received for a period of six months and now he is in arrears of his mortgage.
Rees was not sure how quickly he could receive the money from his aunt’s trust and he thought he could sell his business premises to raise money and pay off the arrears and possibly the entire mortgage. With both possibilities in his mind he asked for advice from the Grantwill Bank. The Grantwill Bank said that under the terms of his contract, in case of early redemption, he needs to pay a substantial amount of penalty. Feeling very confused and frustrated, now Rees is asking for your advice.
Advice Rees on any rights and remedies available to him under the law of mortgages.
Please include some journal articles
