Trustee Act 1925

Where any property is vested in a trustee by way of security, and the property becomes discharged from the right of redemption, the trustee shall hold the property on trust for sale, with power to postpone the sale for such a period as the trustee may think proper.

The net proceeds of sale, after payment of costs and expenses, shall be applied in like manner as the mortgage debt, if received, would have been applicable, and the income of the property until sale shall be applied in like manner as the interest, if received, would have been applicable.

This section shall not affect any rule of law relating to the apportionment of capital and income between tenant for life and remainderman.

This section shall not affect the right of any person to require that, instead of a sale, the property shall be conveyed to the person or in accordance with the person’s directions.

This section applies whether the property is discharged from the right of redemption by virtue of the statutes of limitation or of an order for foreclosure or purchase of the equity of redemption or otherwise.

This section extends to securities by way of mortgage of land under the Real Property Act 1900 and in relation thereto an order for foreclosure includes an order for foreclosure under that Act.

This section applies whether the property has become or becomes discharged from the right of redemption before or after the commencement of this Act.