Section 118 — Property Law Act 2007: Mortgagee accepting interest after expiry of term not to call up without notice

118 Mortgagee accepting interest after expiry of term not to call up without notice (1) This section applies if— (a) the term of a mortgage over property, or any period for which the term has been renewed or extended, has expired; and (b) the principal amount secured by the mortgage has not been repaid; and (c) the mortgagee has, after the date of expiry, accepted interest on the principal amount (except by entering into possession of the property or appointing a receiver) for a period not shorter than 3 months after that date; and (d) the mortgagor has observed all covenants under the mortgage instrument except the covenant to repay the principal amount on the due date. (2) The mortgagee must not call up as payable the principal amount unless— (a) the mortgagee has served on the current mortgagor a notice of the intention to do so at the expiry of the period specified in the notice; and (b) that period has expired. (3) The period specified in the notice under subsection (2) must not be shorter than 60 working days after the date of service of the notice. (4) A notice under subsection (2) may be given in the same document as a notice under section 119 or 128 . Compare: 1952 No 51 s 90