Section Sch2-17 — Property Law Act 2007: Covenants implied in mortgages of leasehold estate or interest in land

17 Covenants implied in mortgages of leasehold estate or interest in land (1) This clause applies if the mortgage is over a leasehold estate or interest in land. (2) The mortgagor covenants that, up to the date of the mortgage,— (a) the rent reserved by the lease under which the mortgagor holds the land has been paid; and (b) the covenants and conditions expressed or implied in the lease, and to be performed and observed by the lessee, have been performed and observed. (3) The mortgagor will from time to time, so long as any amounts remain owing under the mortgage,— (a) pay the rent reserved by the lease under which the mortgagor holds the land; and (b) perform and observe the covenants and conditions expressed or implied in the lease and to be performed and observed by the lessee. (4) The mortgagor will at all times keep the mortgagee indemnified against all actions, expenses, and claims on account of the non-payment of the rent referred to in subclause (3)(a), or the breach or non-observance of the covenants or conditions referred to in subclause (3)(b). (5) The mortgagor irrevocably appoints the mortgagee as the attorney of the mortgagor to do, in the name and on behalf of the mortgagor, all or any of the following: (a) make any inquiry of the lessor concerning the lease: (b) anything necessary to— (i) obtain a new or renewed lease or an assurance of the reversion expectant on the lease in accordance with the provisions of the lease: (ii) negotiate and agree upon any new rental: (iii) make any application under section 253 or 261 of the Property Law Act 2007: (c) execute a new mortgage over any new or renewed lease or reversion in substitution for this mortgage on terms, covenants, and conditions as like or similar to those of the present mortgage as the circumstances will permit: (d) enforce the rights of the mortgagor to any compensation, damages, or other amounts for any cause, including compensation for the value of improvements and buildings that is or may be payable if any person other than the mortgagor becomes the purchaser at auction of any right to a lease of the land, or otherwise: (e) receive the compensation, damages, or other amounts referred to in paragraph (d) on behalf of the mortgagor: (f) enter into, execute, and register any instrument that is necessary or expedient for any of the purposes specified in paragraphs (a) to (e) (including the making of a request to the Registrar-General under section 117 or 118A of the Land Transfer Act 1952). (6) The mortgagee, as attorney of the mortgagor, has power from time to time to appoint and remove 1 or more substitute attorneys. (7) The mortgagor agrees to ratify and confirm anything that the mortgagee or a substitute attorney lawfully does or causes to be done under this clause. Compare: 1952 No 51 Schedule 4 cls 14, 15