Relief for Borrowers under the Property Law Act
13 Jun 2020
As earlier signalled by the government, the Property Law Act has now been amended to the extent that a borrower under a mortgage now has 40 working days (previously 20 working days) after being served with a Property Law Act Notice for breach of a loan agreement, to remedy the breach.
As earlier signalled by the government, the Property Law Act has now been amended to the extent that a borrower under a mortgage now has 40 working days (previously 20 working days) after being served with a Property Law Act Notice for breach of a loan agreement, to remedy the breach.
It is only after the 40 working day period that a lender can enter into a mortgagee sale agreement to sell the property that has been mortgaged.
The amendment is good news for borrowers who may well be under financial stress as a result of the Covid-19 crisis.
The extension to 40 working days to remedy is not intended to be a permanent extension. Parliament has indicated that (after proving reasonable notice) the remedy period will eventually revert back to 20 working days.
If you are under financial strife in relation to your mortgage, you should obtain legal advice. The Dispute Resolution team at Martelli McKegg is able to assist.
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