Land Law Assignment Example | Topics and Well Written Essays - 3000 words - 1

Land Law - Assignment Example The entire cost for this work was worth  £ 110,000. Ali unduly influenced Ben to signed mortgage forms that lead to release of some security in Valiant Villa to cover the costs. Ideally, not all mortgages are utilized to buy property. As in this case, it is apparent that Ali who also worked as a model scout and agent committed himself to fund Cait. However, since Ali had no sufficient money, he decided to use his right to the villa to take a mortgage with Cantander bank. According to the common law, Cantander bank has the right to repossess Valliant Villa in the event that any liability within which joint owners are liable is not honored. In National Westminster Bank v Skelton, the court held that the mortgagee has unqualified right to repossession in the event that the mortgagor defaults in mortgage repayment.2 Cantander bank has the right to repossesses the villa and either uses it to generate income or sell it to recover unpaid mortgage amounts. Surprisingly, Ben was not fully aware of the whole deal as he thought the second mortgage was a form of mortgage repackaging. Unluckily, Cait Miss was embroiled in a drug scandal which dented her image making it difficult to continue working in the model industry. Indeed Ali’s reputation as her agent was also shattered and could no longer earn revenues to cover mortgage repayments. Cantander bank is now seeking repossession of Valiant Villa which has indeed caught Ben unaware. Ben should understand that mortgage as a contact is primarily based on contract law in regard to formation, terms and termination. As such, a mortgage differs from an ordinary loan since the mortgagee has equal rights to the property as the mortgagor. A mortgage has a proprietary interest since a mortgagee has rights over the property and can therefore take possession of that property in the event of non