Part X Mortgages
131 Regulated mortgages.
1
Subject to subsection (2) below, a mortgage which falls within section 129(1)(a) of this Act . . . F1 is a regulated mortgage if—
a
it is a legal mortgage of land consisting of or including a dwelling-house which is let on or subject to a regulated tenancy, and
b
the regulated tenancy is binding on the mortgagee.
2
Notwithstanding that a mortgage falls within subsection (1) above, it is not a regulated mortgage if—
a
the rateable value on the appropriate day of the dwelling-house which falls within subsection (1)(a) above or, if there is more than one such dwelling-house comprised in the mortgage, the aggregate of the rateable values of those dwelling-houses on the appropriate day is less than one-tenth of the rateable value on the appropriate day of the whole of the land comprised in the mortgage, or
b
the mortgagor is in breach of covenant, but for this purpose a breach of the covenant for the repayment of the principal money otherwise than by instalments shall be disregarded.
3
Subsection (2)(a) above shall have effect, in the M1case of land consisting of or including a dwelling-house which on 22nd March 1973 was subject to a tenancy which became a regulated tenancy by virtue of section 14 of the Counter-Inflation Act 1973, as if for the reference to the appropriate day there were substituted a reference to 7th March 1973.
4
In this section “legal mortgage” includes a charge by way of legal mortgage.
5
Any reference in this Part of this Act to a regulated mortgage shall be construed in accordance with this section.