The new mortgages

The long-awaited amendment to the Land and Mortgage Registers and Mortgage Act has been in effect for more than six months and many doubts have already been clarified. but there still remain a number of questions in need of answers In banking circles, the new institution of a vacant mortgage place is raising a great deal of concern, all the more so if the property owner seeks to reduce the amount of the mortgage or divide it up. In practice, the new law contributes to the increased legal risk that a mortgage entails. This may impede or increase the costs of raising finance.The amendment to the Mortgage Law has enabled the owner of encumbered real estate to request a reduction in the mortgage amount, if the security is excessive. This may happen where the value of the mortgage is higher than the amount of the loan being secured. In practice, the parties to the secured loan agreement may agree on a reasonable ratio between these two values at the initial stage at which the mortgage beco