85Tacking and further advances

85 Tacking and further advances (1) On the commencement of this Act, a prior mortgagee has a right to make further advances to rank in priority to subsequent mortgages (whether legal or equitable) if: (a) an arrangement has been made to that effect with the subsequent mortgagees; (b) the mortgagee had no notice of the subsequent mortgages at the time when the further advance was made by the mortgagee; or (c) the total amount advanced under the mortgagee's mortgage at any time does not exceed the maximum amount specified in the loan agreement or mortgage as the maximum amount that may be secured by the mortgage. (2) Nothing in subsection (1) affects the right of a prior mortgagee to rank in priority to subsequent mortgagees in respect of expenses properly incurred in preserving the mortgaged property. (3) A mortgagee in respect of a mortgage that was made expressly for securing a current account or other further advances is, in relation to the making of further advances after the commencement of this Act, not to be taken to have notice of another mortgagee by reason only that the other mortgage was registered under an Act providing for registration of mortgages or deeds unless it was registered under that Act at the time when the first-mentioned mortgage was created or when the last search (if any) by or on behalf of the mortgagee was made, whichever last occurred. (4) Other than as provided in subsection (3), the right to tack is abolished. (5) Nothing in this Act affects any priority acquired before the commencement of this Act: (a) by tacking; (b) in respect of further advances made without notice of a subsequent mortgage; or (c) by arrangement with a subsequent mortgagee. (6) This section applies to mortgages of land made before and after the

Law of Property Act 2000 54