Re-mortgage: Granting Lender Power of Attorney
Discussion
Hi all,
I'm in the process of taking out a mortgage on a couple of our BTL's, currently unencumbered. We've received the mortgage offers and both require us to agree that the Lender can act as our Attorney. I haven't come across this before but our mortgage advisor is telling me all mortgages have this. Is this normal practice?
T&C's state:
6 When We Can Act On Your Behalf
6.1 Sometimes we may need to take certain action (such as to sign documents) on your behalf to protect our security. You therefore appoint us to be your attorney to take such action where necessary. This means we are legally entitled to act on your behalf. We are appointed for as long as the mortgage remains in force securing any money you owe to us.
6.2 If there is more than one of you then you agree that we will be attorney for one of you and a person or persons authorised by us may act as attorney for the other(s) as necessary.
6.3 You give us a power of attorney authorising us and any receiver to act on your behalf to take any action which you are obliged to take under these Mortgage Conditions, including but not limited to:
(a) signing and completing any document which is needed to make good any defect in your title to the Property or in the mortgage;
(b) transferring your share or interest in any residents’ society or management company, or your legal or beneficial interest in the freehold or leasehold reversion of the Property when we exercise our powers as mortgagee to sell or lease the Property;
(c) entering into any variation of your title to the Property in order to protect or enhance our security; and
(d) settling any claim made by your landlord, management company or commonhold association (if your Property is leasehold or commonhold) or rent charge owner (if your Property is subject to a rent charge) if we think it reasonable for us to settle it in order to protect our security or maintain its value, even though you may dispute the sum claimed.
And:
Section 15: When can we act on your behalf?
When you take out this mortgage, you appoint us to be your attorney. This is someone who can legally act on your behalf.
We can also delegate this power to someone else.
You also appoint any receiver to be your attorney. This appointment will continue until the agreement ends and you can't
cancel it.
We'll be your attorney until all the mortgage has been paid in full. This includes the money you owe us and any other
amounts secured by the mortgage.
This allows us, or the receiver, to do anything needed to use, protect and enforce our rights under the mortgage in your
name and on your behalf. This includes doing things on your behalf that you should have done under the agreement.
This means that we (or a receiver) can:
• sign documents
• enter into agreements
• register documents at the Land Registry on your behalf.
Obviously, I'll be speaking with my Conveyancer but was wondering if I should just turn these mortgage offers down based on the above.
All comments appreciated.
I'm in the process of taking out a mortgage on a couple of our BTL's, currently unencumbered. We've received the mortgage offers and both require us to agree that the Lender can act as our Attorney. I haven't come across this before but our mortgage advisor is telling me all mortgages have this. Is this normal practice?
T&C's state:
6 When We Can Act On Your Behalf
6.1 Sometimes we may need to take certain action (such as to sign documents) on your behalf to protect our security. You therefore appoint us to be your attorney to take such action where necessary. This means we are legally entitled to act on your behalf. We are appointed for as long as the mortgage remains in force securing any money you owe to us.
6.2 If there is more than one of you then you agree that we will be attorney for one of you and a person or persons authorised by us may act as attorney for the other(s) as necessary.
6.3 You give us a power of attorney authorising us and any receiver to act on your behalf to take any action which you are obliged to take under these Mortgage Conditions, including but not limited to:
(a) signing and completing any document which is needed to make good any defect in your title to the Property or in the mortgage;
(b) transferring your share or interest in any residents’ society or management company, or your legal or beneficial interest in the freehold or leasehold reversion of the Property when we exercise our powers as mortgagee to sell or lease the Property;
(c) entering into any variation of your title to the Property in order to protect or enhance our security; and
(d) settling any claim made by your landlord, management company or commonhold association (if your Property is leasehold or commonhold) or rent charge owner (if your Property is subject to a rent charge) if we think it reasonable for us to settle it in order to protect our security or maintain its value, even though you may dispute the sum claimed.
And:
Section 15: When can we act on your behalf?
When you take out this mortgage, you appoint us to be your attorney. This is someone who can legally act on your behalf.
We can also delegate this power to someone else.
You also appoint any receiver to be your attorney. This appointment will continue until the agreement ends and you can't
cancel it.
We'll be your attorney until all the mortgage has been paid in full. This includes the money you owe us and any other
amounts secured by the mortgage.
This allows us, or the receiver, to do anything needed to use, protect and enforce our rights under the mortgage in your
name and on your behalf. This includes doing things on your behalf that you should have done under the agreement.
This means that we (or a receiver) can:
• sign documents
• enter into agreements
• register documents at the Land Registry on your behalf.
Obviously, I'll be speaking with my Conveyancer but was wondering if I should just turn these mortgage offers down based on the above.
All comments appreciated.
Percy Cushion said:
Hi all,
I'm in the process of taking out a mortgage on a couple of our BTL's, currently unencumbered. We've received the mortgage offers and both require us to agree that the Lender can act as our Attorney. I haven't come across this before but our mortgage advisor is telling me all mortgages have this. Is this normal practice?
T&C's state:
6 When We Can Act On Your Behalf
6.1 Sometimes we may need to take certain action (such as to sign documents) on your behalf to protect our security. You therefore appoint us to be your attorney to take such action where necessary. This means we are legally entitled to act on your behalf. We are appointed for as long as the mortgage remains in force securing any money you owe to us.
6.2 If there is more than one of you then you agree that we will be attorney for one of you and a person or persons authorised by us may act as attorney for the other(s) as necessary.
6.3 You give us a power of attorney authorising us and any receiver to act on your behalf to take any action which you are obliged to take under these Mortgage Conditions, including but not limited to:
(a) signing and completing any document which is needed to make good any defect in your title to the Property or in the mortgage;
(b) transferring your share or interest in any residents’ society or management company, or your legal or beneficial interest in the freehold or leasehold reversion of the Property when we exercise our powers as mortgagee to sell or lease the Property;
(c) entering into any variation of your title to the Property in order to protect or enhance our security; and
(d) settling any claim made by your landlord, management company or commonhold association (if your Property is leasehold or commonhold) or rent charge owner (if your Property is subject to a rent charge) if we think it reasonable for us to settle it in order to protect our security or maintain its value, even though you may dispute the sum claimed.
And:
Section 15: When can we act on your behalf?
When you take out this mortgage, you appoint us to be your attorney. This is someone who can legally act on your behalf.
We can also delegate this power to someone else.
You also appoint any receiver to be your attorney. This appointment will continue until the agreement ends and you can't
cancel it.
We'll be your attorney until all the mortgage has been paid in full. This includes the money you owe us and any other
amounts secured by the mortgage.
This allows us, or the receiver, to do anything needed to use, protect and enforce our rights under the mortgage in your
name and on your behalf. This includes doing things on your behalf that you should have done under the agreement.
This means that we (or a receiver) can:
• sign documents
• enter into agreements
• register documents at the Land Registry on your behalf.
Obviously, I'll be speaking with my Conveyancer but was wondering if I should just turn these mortgage offers down based on the above.
All comments appreciated.
The above looks like Santander?I'm in the process of taking out a mortgage on a couple of our BTL's, currently unencumbered. We've received the mortgage offers and both require us to agree that the Lender can act as our Attorney. I haven't come across this before but our mortgage advisor is telling me all mortgages have this. Is this normal practice?
T&C's state:
6 When We Can Act On Your Behalf
6.1 Sometimes we may need to take certain action (such as to sign documents) on your behalf to protect our security. You therefore appoint us to be your attorney to take such action where necessary. This means we are legally entitled to act on your behalf. We are appointed for as long as the mortgage remains in force securing any money you owe to us.
6.2 If there is more than one of you then you agree that we will be attorney for one of you and a person or persons authorised by us may act as attorney for the other(s) as necessary.
6.3 You give us a power of attorney authorising us and any receiver to act on your behalf to take any action which you are obliged to take under these Mortgage Conditions, including but not limited to:
(a) signing and completing any document which is needed to make good any defect in your title to the Property or in the mortgage;
(b) transferring your share or interest in any residents’ society or management company, or your legal or beneficial interest in the freehold or leasehold reversion of the Property when we exercise our powers as mortgagee to sell or lease the Property;
(c) entering into any variation of your title to the Property in order to protect or enhance our security; and
(d) settling any claim made by your landlord, management company or commonhold association (if your Property is leasehold or commonhold) or rent charge owner (if your Property is subject to a rent charge) if we think it reasonable for us to settle it in order to protect our security or maintain its value, even though you may dispute the sum claimed.
And:
Section 15: When can we act on your behalf?
When you take out this mortgage, you appoint us to be your attorney. This is someone who can legally act on your behalf.
We can also delegate this power to someone else.
You also appoint any receiver to be your attorney. This appointment will continue until the agreement ends and you can't
cancel it.
We'll be your attorney until all the mortgage has been paid in full. This includes the money you owe us and any other
amounts secured by the mortgage.
This allows us, or the receiver, to do anything needed to use, protect and enforce our rights under the mortgage in your
name and on your behalf. This includes doing things on your behalf that you should have done under the agreement.
This means that we (or a receiver) can:
• sign documents
• enter into agreements
• register documents at the Land Registry on your behalf.
Obviously, I'll be speaking with my Conveyancer but was wondering if I should just turn these mortgage offers down based on the above.
All comments appreciated.
"our mortgage advisor is telling me all mortgages have this"...............he's correct.
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