Answer ONE question from this part.
1. In 2018 Boris borrowed £500,000 from the Careful Bank, secured against Boris’ registered freehold property, Dunleavin, by first legal charge. In 2019, Boris needed to raise more money to pay off business debts and so borrowed £100,000 from the Optimistic Bank, secured by a second legal charge on Dunleavin. Boris’ financial situation has deteriorated further in the last year and he is currently over three months in arrears of the Optimistic Bank’s mortgage repayments. With property prices falling sharply, the Optimistic Bank wish to realise their security on Dunleavin. Advise them:
a) What powers they have to sell Dunleavin and how any sale would affect the Careful Bank.
b) How they must apply the proceeds of any sale of Dunleavin.
c) If they wish to sell at an undervalue for a quick sale, what remedy(s) might be available to Boris.
d) If they would be better advised to repossess Dunleavin and rent it out whilst the property market recovers?
