Section 144 — Property Law Act 2007: Extent to which lease of land entered into by mortgagee in possession is binding on certain persons

144 Extent to which lease of land entered into by mortgagee in possession is binding on certain persons (1) A lease of land entered into by a mortgagee in possession— (a) is not binding on a person holding any other encumbrance over the land to the extent that the encumbrance has priority over the mortgagee’s mortgage, unless that person has consented to the lease: (b) is binding on a person holding a subsequent encumbrance over the land: (c) is binding on the current mortgagor to the extent provided in subsection (2). (2) When a mortgagee who has entered into a lease of land has withdrawn from possession of that land, the current mortgagor, or any person to whom the land has been transferred, assigned, or transmitted, is bound by the lessor’s covenants and is entitled to enforce the lessee’s covenants under the lease. Compare: 1952 No 51 s 91(2)