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Collateral Assignment Mortgage Template for England and Wales

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Key Requirements PROMPT example:

Collateral Assignment Mortgage

"I need a Collateral Assignment Mortgage to secure a £2.5M commercial loan against an existing mortgage on a warehouse property in Manchester, with the assignment to be effective from March 1, 2025."

Document background
A Collateral Assignment Mortgage is commonly used in England and Wales when existing mortgage rights need to be used as security for additional financing arrangements. This document is particularly relevant in refinancing situations, portfolio management, or when structuring complex security arrangements. The assignment creates a security interest in the original mortgage while preserving the underlying mortgage relationship. It must comply with English property law requirements and typically includes detailed provisions regarding the rights and obligations of all parties, enforcement mechanisms, and registration requirements.
Suggested Sections

1. Parties: Identification of mortgagor, mortgagee, and any other relevant parties

2. Background: Context of the mortgage assignment and original mortgage details

3. Definitions: Key terms used throughout the document

4. Assignment Provisions: Core terms of the collateral assignment

5. Security Provisions: Details of the security being created

6. Representations and Warranties: Standard declarations by the parties

7. Covenants: Ongoing obligations of the parties

Optional Sections

1. Consumer Protection Provisions: Required if the mortgage involves a consumer borrower - applicable for residential mortgages

2. Trust Provisions: Special provisions for trust arrangements - required when trustees are involved

3. Cross-Default Provisions: Links to other financial agreements - used when part of larger financing arrangement

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the mortgaged property

2. Schedule 2 - Original Mortgage: Copy or details of the original mortgage being assigned

3. Schedule 3 - Secured Obligations: Details of the obligations secured by the assignment

4. Appendix A - Form of Notice: Standard form notices required for the assignment

5. Appendix B - Registration Requirements: Land Registry forms and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
































Clauses































Industries

Law of Property Act 1925: Primary legislation governing property law in England and Wales, including key provisions for mortgages and charges, requirements for legal mortgages creation, and mortgagees' rights and remedies

Land Registration Act 2002: Establishes requirements for mortgage registration, priority rules, and electronic registration procedures in England and Wales

Financial Services and Markets Act 2000: Sets out the regulatory framework for mortgage lending and requirements for regulated mortgage activities

Consumer Credit Act 1974: Provides consumer protection provisions and regulations for consumer borrowing in mortgage contexts

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001: Secondary legislation that defines and specifies regulated mortgage activities

FCA Mortgage Conduct of Business Rules (MCOB): Regulatory rules setting out conduct requirements for mortgage lenders and regulated mortgage contracts

Land Registration Rules 2003: Details procedural requirements for land and mortgage registration

Trustee Act 2000: Legislation governing trustee duties and powers relevant to mortgages involving trustees

Unfair Contract Terms Act 1977: Legislation protecting against unfair terms in contracts, including mortgage agreements

Consumer Rights Act 2015: Modern consumer protection legislation ensuring fair terms in consumer contracts, including mortgage agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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