Section 141 — Property Law Act 2007: Mortgagee in possession of leasehold estate or interest in land or of leased goods

141 Mortgagee in possession of leasehold estate or interest in land or of leased goods (1) A mortgagee in possession of a mortgaged leasehold estate or interest in land is liable to the person for the time being entitled to the reversion of the leasehold estate or interest for the observance and performance of all covenants of the lessee (including the payment of rent). (2) A mortgagee in possession of mortgaged leased goods is liable to the lessor of the goods for the observance and performance of all covenants of the lessee (including the payment of rent). (3) However, the liability under this section— (a) arises only for a failure to observe and perform those covenants that occurs while the mortgagee is in possession of the leasehold estate or interest in land or of the leased goods; and (b) is limited to the amount of the income received from the leasehold estate or interest in land, or the leased goods, by the mortgagee as mortgagee in possession. Compare: 1952 No 52 s 110