In a reference to determine the distribution of proceeds from a mortgage sale, the first mortgagee sought to claim increased fees and expenses arising from amending agreements entered into with the mortgagor after the second mortgagee registered its charge.
The court held that the second mortgagee was not bound by the amending agreements, as it had no notice of them at the time of registration.
The first mortgagee was only entitled to claim fees specifically set out in the registered mortgage and standard charge terms.
The increased fees were disallowed and legal fees were reduced.
