Property Law Act 1958

Where any property, vested in trustees by way of security, becomes, by virtue of the statutes of limitation, or of an order for foreclosure or otherwise, discharged from the right of redemption,^[16] it shall be held by them on trust for sale.

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; but this subsection shall operate without prejudice to 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 him or in accordance with his directions.

Where the mortgage money is capital money for the purposes of the Settled Land Act 1958 the trustees shall if the tenant for life or statutory owner so requires instead of selling any land forming the whole or part of such property make such conveyance or execute such declaration of trust of the same as may be required for giving effect to the directions contained in section eighty‑two of the said Act and as if the land had been acquired by purchase under that section.

This section shall apply whether the right of redemption was discharged before or after the first day of January One thousand nine hundred and thirteen, but shall have effect without prejudice to any dealings or arrangements made before that date.