Discharge of commercial mortgages made simple?
The City of London Law Society (CLLS) Land Law Committee has released a protocol for discharging mortgages of commercial property, incorporating input from the Association of the Property Leaders and the CLLS Financial Law Committee. The protocol was produced in order to simplify the very common process of discharging mortgages of commercial property. Surprisingly, lawyers can spend hours debating and negotiating the completion process of discharging the outgoing mortgagor’s charge and completing the incoming funder’s mortgage despite it being something that happens on a regular basis.
The potential gridlock arises on the redemption of a commercial mortgage because buyers will fight over which comes first, the ‘chicken or the egg’, the release or the money?
The buyer’s funder will want the seller’s funder’s (‘releasing funder’) release documents to be signed prior to completion and delivered legally on completion with the original to follow shortly afterwards in line with their solicitor’s undertaking. However, the releasing funder will not want to hand control of the release documents to the buyer’s funder (‘incoming funder’) until it has received the funds to redeem the charge…
Click on the link below to read the rest of the Gateley briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Gateley
News from The Lawyer
Briefings from Gateley
What the law (s244) says about credit terms once a company has fallen into insolvency
A heritable creditor is required to ‘take all reasonable steps to secure that the price at which all or any of the subjects are sold is the best that can be reasonably obtained’.
Analysis from The Lawyer
The Law Society recently published guidance to assist solicitors draw up Shariah-compliant wills, causing outrage in some quarters. Gateley’s Haroon Rashid explains the facts.