Major overhaul of mortgage security in Jersey16 Feb 2018
The States of Jersey have passed a law to make major changes to the registration of mortgages (known locally as hypothecs) in Jersey.
Under the present law, mortgages must be re-registered in the public registry every ten years, despite the majority of mortgages being for a term of 25 or 30 years.
The current system, which has long been seen as out-of-step with modern lending practices, has been amended with the result that a mortgage will only require re-registration after a period of 30 years.
This means that, with effect from 23 February 2018, the vast majority of new and existing mortgages will never need to be re-registered.
The change will be welcomed by borrowers who, at present, must pay all re-registration costs, including both the lender's and the borrower's legal fees.
The change in the law is also good news for lenders as the current system places a significant administrative burden on them.
Jane Needham of Bedell Cristin's Property team has welcomed the news.
"This change in the law is terrific news for both lenders and borrowers. Lenders will see a huge reduction in administration time and, perhaps more importantly, borrowers will no longer be faced with two sets of legal fees as well as Court fees, totalling hundreds of pounds."