Rights of mortgagor – Property in Singapore for rent
Property in Singapore for rent – The mortgagor has the following rights:
- The equity of redemption: The mortgagor has the right to prevent foreclosure (after the foreclosure proceedings have started for having defaulted in making payment on the mortgage) by paying the outstanding amount due on the loan plus interest and other expenses.
- To redeem mortgage before maturity: The mortgagor has the right to recover possession of his property title by repayment of the full loan any time before maturity. However, most mortgagees may impose a penalty (usually 1% of the loan) on mortgagors who fully repay their loans and redeem their mortgages within the first 2 years.
- To assign mortgage: A mortgage can be assigned to a third party
- To grant a lease: A mortgagor in possession of the property can grant a lease not exceeding 3 years.
- To prevent consolidation of mortgages: A mortgagor seeking to redeem one mortgage does not have to redeem any other mortgage owed by him.
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