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Deed Of Real Estate Mortgage for the United Kingdom

Deed Of Real Estate Mortgage Template for England and Wales

A Deed of Real Estate Mortgage is a formal legal document under English and Welsh law that creates a security interest over real property in favor of a lender. It sets out the terms under which the property serves as collateral for a loan, including the rights and obligations of both the borrower and lender. The deed must comply with the formal requirements of the Law of Property Act 1925 and be registered with HM Land Registry to be effective.

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Deed Of Real Estate Mortgage

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What is a Deed Of Real Estate Mortgage?

A Deed of Real Estate Mortgage is used when property is offered as security for a loan in England and Wales. This document is essential for both residential and commercial property transactions where secured lending is involved. The deed must comply with strict formal requirements under English law and contains detailed information about the property, the loan terms, the parties' obligations, and the lender's rights in case of default. It creates a legal charge over the property which must be registered with HM Land Registry to be effective against third parties.

What sections should be included in a Deed Of Real Estate Mortgage?

1. Parties: Details of mortgagor and mortgagee, including full legal names and addresses

2. Background: Context of the mortgage, including property details and loan agreement reference

3. Definitions: Key terms used throughout the deed

4. Property Description: Detailed legal description of the mortgaged property

5. Mortgage Terms: Core terms including amount, interest rate, and repayment provisions

6. Covenants: Mortgagor's obligations regarding property maintenance and insurance

7. Powers of the Mortgagee: Rights of the lender including power of sale

8. Execution: Formal execution blocks for all parties

What sections are optional to include in a Deed Of Real Estate Mortgage?

1. Further Advance Provisions: Additional terms for mortgages allowing additional borrowing - used for flexible mortgages allowing additional drawdown

2. Buy-to-Let Provisions: Specific terms for rental properties - included when property is intended for rental purposes

3. Cross-Collateralization: Terms linking multiple properties - used when mortgage covers multiple properties

What schedules should be included in a Deed Of Real Estate Mortgage?

1. Property Schedule: Detailed property description including title number and plan

2. Payment Schedule: Repayment terms and instalments

3. Special Conditions: Any property-specific or borrower-specific conditions

4. Property Plan: Official copy of Land Registry plan

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Property Deed

Cost

Free to use
Relevant legal definitions







































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Industries

Law of Property Act 1925: Primary legislation governing real estate mortgages in England and Wales, covering sections 85-137 on mortgage requirements, legal mortgages and power of sale provisions

Land Registration Act 2002: Governs the registration of land and mortgages, including requirements for registration, priority rules and electronic conveyancing provisions

Financial Services and Markets Act 2000: Establishes the regulatory framework for mortgage lending and contains consumer protection provisions

Consumer Credit Act 1974: Regulates credit agreements and provides consumer protection provisions for applicable mortgage arrangements

FSMA 2000 (Regulated Activities) Order 2001: Secondary legislation detailing specific mortgage regulation requirements under the Financial Services and Markets Act

MCOB (Mortgages and Home Finance: Conduct of Business Sourcebook): FCA rulebook containing detailed regulations on mortgage conduct and business practices

Land Registration Rules 2003: Provides detailed procedural requirements for the registration of mortgages and related interests in land

Unfair Terms in Consumer Contracts Regulations 1999: Protects consumers against unfair terms in mortgage contracts, particularly relevant for residential mortgages

Human Rights Act 1998: Relevant for mortgage enforcement and possession proceedings, ensuring compliance with human rights obligations

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