In the matter of section 119 of the Property Law Act 2007
In the matter of Mortgage Instrument No: [specify], [Land Registration District] Registry (the mortgage)
To
[Mortgagor’s full name and actual or last-known residential or business address]
[Mortgagee’s or receiver’s full name], the mortgagee/receiver* under the mortgage, gives notice that the consequence specified below will follow if each default specified below has not been, or cannot be, remedied on or before [date].1
*Delete whichever is inapplicable. |
Default
As at the date of this notice, you are in default under the mortgage in that—
- †(a)
you have failed to pay [specify each default of payment claimed, stating the amount, due date, and nature (for example, principal, interest, insurance premiums, etc) of each missed payment, and any other particulars necessary to adequately inform the mortgagor of the nature and extent of the default]:
- †(b)
you have failed to observe or perform the following express or implied covenant(s) in the mortgage: [specify each default complained of with sufficient particularity to adequately inform the mortgagor of the nature and extent of the default, for example, failure to keep building(s) insured or in good repair]:
- †(c)
the following has occurred: [specify any other event (other than the arrival of the due date) on the occurrence of which any amounts secured by the mortgage become payable, or may be called up as becoming payable, under any express or implied term in the mortgage].
Action required to remedy default
2You are required to remedy the specified default(s), or to cause the default(s) to be remedied,—
- †(a)
by payment of the sum of $[amount] †(which includes [amount], being the reasonable costs and disbursements of the mortgagee/receiver* in preparing and serving this notice):
- †(b)
by [specify action required to remedy each default].
†Delete if inapplicable. |
*Delete whichever is inapplicable. |
Consequence if default not remedied
If each default has not been, or cannot be, remedied on or before [date],1—
- †(a)
all amounts/the following selected amounts* secured by the mortgage will become payable, namely: [specify relevant amounts]:
- †(b)
all amounts/the following selected amounts* secured by the mortgage may be called up as becoming payable, namely: [specify relevant amounts]:
- †(c)
the following powers of the mortgagee/receiver* will become exercisable:
- †(i)
the mortgagee’s power to enter into possession of the mortgaged land:
- †(ii)
the receiver’s power to manage the mortgaged land or demand and recover income from the mortgaged land:
- †(iii)
the mortgagee’s/receiver’s* power to sell the mortgaged land.
†Delete if inapplicable. |
*Delete whichever is inapplicable. |
Important information for recipient of notice
You are strongly recommended to consult a lawyer about this notice without delay.
Signed and dated at [place] on [date] by [full name], who is/who signed this notice on behalf of* the mortgagee/receiver*: [signature]
*Delete whichever is inapplicable. |
This notice is given by [specify], whose address for service is [address].
Copy to [each person specified in section 121(1)(a) to (d) of the Property Law Act 20073 of whose name and address the mortgagee or receiver has actual notice].
Notes for mortgagee or receiver completing notice
These notes are not part of the form.
- 1
Section 120(1)(c) of the Property Law Act 2007 requires the date specified to be a date—
- (a)
at least 20 working days after the date of service of the notice; or
- (b)
after any longer period for the remedying of the default specified by any term that is expressed or implied in any instrument.
- 2
If the default complained of is incapable of remedy, omit this paragraph and substitute: “The default is incapable of remedy.”
- 3
The persons specified in section 121(1)(a) to (d) of the Property Law Act 2007 are as follows:
- (a)
- (b)
- (c)
any mortgagee under a subsequent mortgage, and any holder of any subsequent encumbrance, over the mortgaged land if—
- (i)
the subsequent mortgage or other subsequent encumbrance is registered; or
- (ii)
the subsequent mortgage or other subsequent encumbrance is unregistered, but either the mortgagee or receiver has actual notice of it:
- (d)
any person who has lodged a caveat under section 138 of the Land Transfer Act 2017, or a notice under section 42 of the Property (Relationships) Act 1976 having the effect of a caveat, against the title to the mortgaged land or any part of it.
- 4
A notice under section 118 (calling up of mortgage over any kind of property if interest has been accepted after expiry of term) of the Property Law Act 2007 may be given in the same document as the notice: Property Law Act 2007, sections 118(4) and 119(4).
Schedule form 1 note paragraph 3(d): amended, on 12 November 2018, by section 250 of the Land Transfer Act 2017 (2017 No 30).