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Mortgage Loan Extension Agreement Template for England and Wales

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Key Requirements PROMPT example:

Mortgage Loan Extension Agreement

"I need a Mortgage Loan Extension Agreement for a residential property in Manchester, extending the current mortgage term by 5 years to March 2025, with the existing interest rate maintained but monthly payments reduced due to the longer term."

Document background
A Mortgage Loan Extension Agreement is utilized when parties to an existing mortgage wish to modify the loan's duration or repayment terms. This document, governed by English and Welsh law, becomes necessary when borrowers require additional time to repay their mortgage, often due to financial circumstances or strategic planning. The agreement typically includes updated payment schedules, revised maturity dates, and any modified interest terms while ensuring the original security remains intact. It must comply with UK financial regulations, including FCA requirements and consumer protection laws.
Suggested Sections

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Details of original mortgage, reason for extension, and current status

3. Definitions: Key terms used throughout the agreement

4. Extension Terms: Specific details of the extension including new maturity date

5. Payment Terms: Modified payment schedule and amounts

6. Interest Rate: Specification of applicable interest rate(s)

7. Security Continuation: Confirmation that original security remains in force

Optional Sections

1. Additional Security: Required when new security or collateral is being added to the mortgage agreement

2. Change in Parties: Required when borrower or other party details have changed since the original agreement

3. Additional Borrower Covenants: New promises or obligations of the borrower when additional conditions are being imposed

Suggested Schedules

1. Schedule 1 - Original Mortgage Details: Copy or summary of original mortgage terms

2. Schedule 2 - New Payment Schedule: Detailed payment schedule showing dates and amounts

3. Schedule 3 - Property Details: Description of mortgaged property

4. Appendix A - Calculation of New Terms: Detailed calculations showing revised payment amounts

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries
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Financial Services and Markets Act 2000: Primary legislation governing financial services regulation in the UK, including mortgage lending activities and consumer protection in financial services

Consumer Credit Act 1974: Key legislation protecting consumers in credit agreements, including provisions for information disclosure and unfair relationships

Law of Property Act 1925: Fundamental property law statute governing real property in England and Wales, including mortgage security and property rights

Consumer Rights Act 2015: Modern consumer protection legislation addressing unfair terms in consumer contracts and transparency requirements

Mortgage Credit Directive Order 2015: Implementation of EU regulations on mortgage credit, establishing framework for mortgage lending and consumer protection

FCA Mortgage Conduct of Business Rules: Regulatory guidelines governing mortgage lenders' conduct, including requirements for fair treatment and information disclosure

FCA Consumer Credit Sourcebook: Detailed regulatory requirements for consumer credit activities, including mortgage lending practices

FCA Treating Customers Fairly Principles: Core principles ensuring fair treatment of customers in financial services, including mortgage lending

General Data Protection Regulation: EU regulation on data protection and privacy, affecting how personal information is handled in mortgage agreements

Data Protection Act 2018: UK implementation of GDPR, providing framework for data protection in financial services and mortgage lending

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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