top of page
CELE SQE1 模拟练习

Examination Timing: 00H01M21S

James and Emma own a flat which they rent out to students. The flat is charged to CapitalBank to secure a mortgage of £200,000; however, the flat is only worth £150,000. James and Emma also own a large property in the suburbs of Greenfield, valued at £500,000, which is also charged to CapitalBank to secure a mortgage debt of £100,000. Both mortgage deeds allow consolidation to occur. James and Emma wish to redeem the mortgage over the large property in the suburbs. CapitalBank wants to prevent this as the flat is in negative equity. How would you advise CapitalBank?

< 上一页

You have chosen the correct answer
Your selected option: B

下一页 >

CapitalBank can refuse to allow James and Emma to redeem the charge over the large property, and this would not be classed as a clog on the equity of redemption. The fact that both charges allow consolidation means that they act as security for the combined mortgage debts. Consolidation allows the mortgagee to refuse redemption of one property unless all mortgage debts secured by multiple properties are paid off. The equity of redemption arises only when the aggregate debt secured under all charges has been repaid. Therefore, if the total debt has not been repaid, there is no equity of redemption to be clogged. 

Key Point: Consolidation allows a mortgagee to refuse the redemption of one property when there are multiple properties securing multiple debts, ensuring that the combined debt is repaid in full before any single property can be redeemed. This principle prevents debtors from selectively redeeming properties, especially when some are in negative equity.



学习 CELE SQE.png
来自 Lucky Lion 的 CELE SQE PASS 祝福_


bottom of page