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Jamie-Law
Jamie-Law, Solicitor
Category: Law
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Experience:  Solicitor
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A Lender has a Legal Charge secured over land. Payment date

Resolved Question:

A Lender has a Legal Charge secured over land. Payment date has passed. Does the Lender have to enforce the security first before taking any othyer action such as bankruptcy proceedings?
Submitted: 9 months ago.
Category: Law
Expert:  Jamie-Law replied 9 months ago.

Hello my name is ***** ***** I will help you with this.

How much do you owe please? Is it a residential property or commercial?

Customer: replied 9 months ago.
163;150K is owed on a mixed commercial with flats being developed above. The payment date passed. Request made for payment then bankruptcy petition issued. Surely lender has to enforce security first before other steps such as bankruptcy
Expert:  Jamie-Law replied 9 months ago.

Then yes, they could take possession under Law of Property Act 1925.

They do NOT need a Court order.

Can I clarify anything for you about this today please?

Customer: replied 9 months ago.
They have issued a petition without taking the security. Are they allowed to do so rather than enforcing the security first and then other steps if a shortfall
Expert:  Jamie-Law replied 9 months ago.

Yes they can do this, I am sorry.

I am very sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.
Does that clarify?

Customer: replied 9 months ago.
that is fine. I thought though that security needed realisation first. Thanks for your answer
Expert:  Jamie-Law replied 9 months ago.

Im really sorry its not better news. If this answers your question could I invite you to rate my answer, 5 stars the happy face before you go today, otherwise the site doesn’t pay me for the time spent with you. Thanks in advance!

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