105Relief against provision for acceleration of payment

105 Relief against provision for acceleration of payment (1) If default has taken place: (a) in the payment of an instalment of principal or interest due under a mortgage; or (b) in the observance of a covenant or obligation in a mortgage, and under the terms of the mortgage an accelerated sum may or has because of the default or of the exercise on default of an option or election conferred by the mortgage become due and payable, the mortgagor is entitled to relief under this section. (2) A mortgagor who, at any time before sale by the mortgagee or before the commencement of proceedings to enforce the rights of the mortgagee: (a) performs the covenant or obligation in respect of which default has taken place; or

Law of Property Act 2000 69 (b) tenders to the mortgagee, who accepts payment of, the amounts of the instalment in respect of which default has taken place and the reasonable expenses incurred by the mortgagee, is relieved from the consequences of the default. (3) A mortgagor who, in any proceedings brought to enforce the rights of the mortgagee or brought by the mortgagor: (a) gives an undertaking to the Court to perform a covenant or an obligation; or (b) tenders or pays into Court the amount of an instalment; in respect of which default has taken place, may apply to the Court for relief from the consequences of the default. (4) If a mortgagor makes an application for relief, the Court may grant or refuse relief as the Court having regard to the conduct of the parties and all other circumstances thinks just and, in doing so, may stay any proceedings brought by the mortgagee or otherwise or may grant relief on the terms it thinks just including the payment of any reasonable expenses of the mortgagee and the payment of costs. (5) If in granting relief under subsection (4) the Court has stayed proceedings for the enforcement of the rights of the mortgagee, the Court may, on application, remove the stay of proceedings if the mortgagor defaults in carrying out an undertaking referred to in subsection (3). (b) applies only to a default occurring after the commencement of (c) has effect despite any term of a mortgage to the contrary. (7) In this section, accelerated sum means the whole or part of principal or interest secured by a mortgage other than an instalment referred to in subsection (1)(a).

Law of Property Act 2000 70