Section 143 — Property Law Act 2007: Terms and conditions of lease entered into by mortgagee in possession

143 Terms and conditions of lease entered into by mortgagee in possession (1) A mortgagee in possession must, when entering into a lease of mortgaged land,— (a) have reasonable regard for the interests of the current mortgagor, any former mortgagor, any covenantor, any mortgagee under a subsequent mortgage, and the holder of any other subsequent encumbrance; and (b) take reasonable care to obtain the best rent reasonably available at the time of entering into the lease. (2) A lease of land entered into by a mortgagee in possession must, except with the consent of the current mortgagor or of a court,— (a) be for a term not exceeding— (i) 2 years, in the case of a tenancy to which the Residential Tenancies Act 1986 applies; or (ii) 15 years (including all renewal terms), in any other case; and (b) contain the terms and conditions that are reasonable and appropriate, having regard to the interests of the current mortgagor, any former mortgagor, any covenantor, any mortgagee under a subsequent mortgage, and the holder of any other subsequent encumbrance, on the one hand, and the mortgagee on the other; and (c) provide that the lease takes effect in possession not later than 6 months after the date on which it is entered into. (3) A mortgagee in possession of a leasehold estate or interest in land must not enter into a sublease of that estate or interest for a term longer than the balance of the term of the superior lease. (4) A lease or sublease of land entered into by a mortgagee in possession for a term longer than that permitted by subsection (2)(a) or (3), as the case may be, must be taken to be a valid lease or sublease for the maximum term for which that lease could have been entered into under the relevant provision. Compare: 1952 No 51 s 91(4), (5), (10)