HomeFWJ TakeawayBusiness fundingGetting or giving securitySecured Lending Reform Bill

The Secured Lending Reform Bill was a private members bill. Introduced to the House of Commons in June 2010. It did not complete its passage through parliament and did not become law. Therefore the powers and duties of receivers in relation to secured lending remain governed by the Law of Property Act 1925 as amended from time to time.

The Secured Lending Reform Bill did not make it past first reading. Through amendments to Part III of the Law of Property Act 1925, powers of receivers would be restricted as follows:

  • Receivers would not be entitled to bring proceedings for possession of property, exercise the right of peaceable re-entry or conduct the sale of a property or receive the proceeds of sale of a property unless the court had granted an order for possession.
  • Regulations were to be made restricting the circumstances where the court may make a possession order. Before such possession order could be made, the court would have to be satisfied that the debtor or mortgagor had been given adequate opportunity to raise any counter-claim, set-off or other possible defence against the mortgagee or secured lender.
  • Regulations were to be introduced to abolish the right of the mortgagee or secured lender to obtain peaceable re-entry of a property.

The court’s powers to vary the terms of the mortgage deed were also to be introduced. These powers would have extended to adjusting the rate of interest, the schedule of payments or the value of payments.

If the Secured Lending Reform Bill didn’t pass, what is the position for receivers and mortgagees?

Section 109 of the Law of Property Act 1925 still governs the appointment, powers, remuneration and duties of receivers.


If you are entering into secured lending contact the banking and finance experts at Francis Wilks & Jones for advice on structure and process. Call today, we will be happy to discuss your options with you.

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