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Promissory Note With Real Estate Mortgage for the United Kingdom

Promissory Note With Real Estate Mortgage Template for England and Wales

A Promissory Note With Real Estate Mortgage is a legal document under English and Welsh law that combines a promise to pay a specific sum with security over real property. It creates both a personal obligation to repay the debt and a security interest in the specified real estate, providing the lender with both contractual and proprietary remedies. The document must comply with the formal requirements of both the Bills of Exchange Act 1882 and the Law of Property Act 1925.

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Promissory Note With Real Estate Mortgage

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What is a Promissory Note With Real Estate Mortgage?

The Promissory Note With Real Estate Mortgage is commonly used in England and Wales when securing a loan against real property. This document serves a dual purpose: it evidences the debt and creates security over property. It's particularly useful in private lending arrangements, property development financing, and situations where traditional mortgage products may not be suitable. The document must comply with English property law requirements and financial services regulations, particularly when used by regulated lenders. It includes detailed terms about the loan, property description, repayment terms, and enforcement rights.

What sections should be included in a Promissory Note With Real Estate Mortgage?

1. Parties: Identifies the lender and borrower with full legal names and addresses

2. Background: States the context of the loan and security arrangement

3. Definitions: Defines key terms used throughout the document

4. Promise to Pay: Details of the loan amount, interest rate, and payment terms

5. Security Grant: Creation of the mortgage/charge over the property

6. Property Description: Legal description of the mortgaged property

7. Covenants: Borrower's obligations regarding property maintenance and insurance

8. Default Provisions: Consequences of default and lender's remedies

9. Execution: Signature blocks and attestation requirements

What sections are optional to include in a Promissory Note With Real Estate Mortgage?

1. Guarantor Provisions: Additional provisions that apply when there is a guarantor for the loan

2. Prepayment Terms: Provisions governing early repayment options and any associated penalties

3. Assignment Rights: Provisions governing the rights to assign or transfer the note or mortgage

What schedules should be included in a Promissory Note With Real Estate Mortgage?

1. Property Schedule: Detailed property description including title numbers and plans

2. Payment Schedule: Amortization table showing payment dates and amounts

3. Insurance Requirements: Specific insurance requirements for the property

4. Property Title Documents: Copies of relevant title documents and searches

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions



































Clauses
































Industries

Law of Property Act 1925: Primary legislation governing real estate transactions and mortgages in England and Wales. Defines the legal requirements for creating charges over property.

Consumer Credit Act 1974: Regulates credit agreements and provides consumer protection measures. Applicable when the borrower is an individual rather than a business entity.

Financial Services and Markets Act 2000: Establishes the regulatory framework for financial services. Particularly relevant if the lender is a regulated financial institution.

Bills of Exchange Act 1882: Primary legislation governing promissory notes and defining legal requirements for negotiable instruments.

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001: Secondary legislation that defines regulated mortgage activities and their scope.

Mortgage Credit Directive Order 2015: Implements EU mortgage credit rules into UK law, particularly applicable to residential mortgages.

Consumer Rights Act 2015: Provides protection for consumer borrowers and contains provisions regarding unfair contract terms.

FCA Mortgage Conduct of Business Rules (MCOB): Regulatory rules applicable to FCA-regulated lenders, setting out conduct requirements for mortgage business.

Land Registration Act 2002: Establishes requirements for the registration of mortgages and other interests in land.

Money Laundering Regulations 2017: Sets out due diligence requirements and anti-money laundering measures that must be followed in financial transactions.

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