[Home] [Databases] [World Law] [Search] [Feedback]
	Northern Irish Legislation
You are here:  BAILII >> Databases >> Northern Irish Legislation >> LEASEHOLD (ENLARGEMENT AND EXTENSION) ACT (NORTHERN IRELAND) 1971

[Index] [Table] [Search] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

LEASEHOLD (ENLARGEMENT AND EXTENSION) ACT (NORTHERN IRELAND) 1971 - SECT 16

General provisions in relation to extension of leases.

16.(1) A conveyance of the fee simple for the purposes of this Act shall be
effective to discharge any mortgage of the lessor's estate in the land so
conveyed (not being a mortgage subject to which the conveyance is required to
be made) together with any order for the enforcement of the mortgage, and to
extinguish any term of years created for the purpose of the mortgage, without
the mortgagee being a party to or executing the conveyance.

(2) Where a mortgage is discharged by virtue of the operation of subsection
(1), the lessee to whom the fee simple is conveyed shall in the first instance
pay the purchase price to the mortgagee under the mortgage in satisfaction of
the mortgage debt and the mortgagee shall deal with the purchase price so
paid, and account to the mortgagor therefor, as if the price were the proceeds
of a mortgagee's power of sale for the enforcement of the mortgage and if the
purchase price is not so paid to the mortgagee by the lessee the land shall
remain subject to the mortgage, and to that extent subsection (1) shall not
apply.

(3) Where by virtue of this section land is discharged from a mortgage and the
obligations secured by the mortgage are not satisfied by the payment of the
purchase price, or of part thereof, the discharge shall be without prejudice
to any right or remedy for the enforcement of those obligations against other
property comprised in the same or any other security, and to any personal
liability as principal or otherwise of the mortgagor or of any other person.

© 1971 Crown Copyright

BAILII: Copyright Policy | Disclaimers | Privacy Policy | Feedback
URL: http://www.bailii.org/nie/legis/num_act/laeai1971488/s16.html