Buy To Let Mortgage Conditions (Scotland) 2015

Transcription

1 Virgin Money plc Buy To Let Mortgage Conditions (Scotland) 2015 About this document Your property has been charged to Virgin Money plc by means of a Standard Security in accordance with the provisions of the Conveyancing and Feudal Reform (Scotland) Act 1970, as amended by the Redemption of Standard Securities (Scotland) Act Schedule 3 to the 1970 Act sets out various Standard Conditions which regulate securities over heritable property but Lenders like ourselves have other requirements in addition to these. Accordingly the Act permits variations and extensions of the Standard Conditions and Virgin Money plc has drawn up a Deed of Variations of the Standard Conditions to meet our particular needs. This document sets out the Standard Conditions and Virgin Money plc s Variations. DEED OF VARIATIONS OF STANDARD CONDITIONS made by VIRGIN MONEY PLC WE, VIRGIN MONEY plc incorporated under the Companies Acts (Company No: ) and having our Registered Office at Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL hereby declare that for the purpose of advances to be made by us and to be secured by a Standard Security and other security (if any) the Standard Conditions specified in Schedule 3 to the Conveyancing and Feudal Reform (Scotland) Act 1970 as amended by the Redemption of Standard Securities (Scotland) Act 1971 (which Acts are hereinafter referred to as the Act ) shall be varied as follows: 1. Meanings of words and expressions 1.1 In these conditions the words in bold below have the following special meanings (these words may not appear in bold elsewhere in these conditions): conditions means these conditions as constituted by us, varying the Standard Conditions and incorporated in the Standard Security; Mortgage means where the context so applies (a) the Offer between you and us and/or (b) the Mortgage debt and/or (c) the particular Standard Security in which these conditions are incorporated; Mortgage Charges means any costs or fees we charge under condition 13; Mortgage debt means: (a) all of the money you owe us from time to time under any Offer including any unpaid interest and Mortgage Charges. You may owe us money under more than one Offer at any time depending on the number of loans we may have made to you that are stated to be secured by the Mortgage; (b) if there is only one of you, all other money you owe us on any account from time to time; and (c) if there is more than one of you, all other money all of you together owe us on any account from time to time, even if we cannot enforce our claim for any of that money against any one or more of you; (d) any other Mortgage Charges and interest you owe us under condition 13; Offer means any existing Offer of Loan under which we have agreed to make a loan to you or any Offer of Loan that we may make to you in the future (and if there is more than one of you, all of you together). References to an Offer include any variation which you and we agree or which we make in accordance with the terms of that Offer. The Standard Security may secure the moneys owing under more than one Offer at any time; person refers to any natural person or incorporated or unincorporated body or association; Property means all or any part of the property described in the Offer or the Standard Security or the Standard Conditions or these conditions;; rebuilding cost means the full cost of rebuilding the Property, including the costs of site clearance, the cost of meeting planning and local authority requirements, all professional fees and taxes; security means the security constituted by the Standard Security and any other security deed issued and signed under these conditions; 1 security subjects means the Property and any other interest over which the security extends or shall extend; Standard Conditions means the standard conditions specified in Schedule 3 to the Conveyancing & Feudal Reform (Scotland) Act 1970 as amended; Standard Security means the legal deed which you sign in our favour when we give you the loan and which gives us legal security over your home; we, us and our refer to Virgin Money plc and to our assignees and/or any person who becomes entitled to any of our rights under the Mortgage (this will include any person to whom we transfer or assign the Mortgage under condition 12); you, yourself and your refer to the Borrower(s) named in the Mortgage. If there is more than one of you, these conditions apply to all of you together and to each of you on your own. For example, we can claim any money you owe us from all of you together and from each of you on your own; 1.2 References to a provision in a statute or statutory instrument include any changes which are made to it and to any provision which replaces it. 1.3 If their terms are in conflict: (a) any Offer prevails over the Standard Security; (b) these conditions and the Standard Security prevails over these conditions. 2. What you agree to pay 2.1 You agree to pay us the Mortgage debt at the times and in the manner agreed between you and us. Where you owe us money under any Offer, the times and manner agreed for payment will be set out in the Offer. Where no time for payment of any part of the Mortgage debt has been agreed between you and us, you agree to pay us that money in full 7 days after we demand it in writing. 2.2 If the Mortgage debt has become immediately payable under condition 8 you agree to pay us the Mortgage debt immediately in full if we ask you to pay it. 2.3 If the Mortgage is discharged and our security released before the Mortgage debt has been repaid in full, you agree to pay us the shortfall immediately if we ask for it. 2.4 You also agree to pay us any Mortgage Charges and any interest on them as set out in condition What the Mortgage secures 3.1 The Standard Security is security for the Mortgage debt. 3.2 The Standard Security is a continuing security. This means that we will not release the Standard Security until the Mortgage debt is paid in full, and until we owe no duty to make further advances that would form part of the Mortgage debt. 3.3 The Standard Security is not security for any money you owe under a regulated agreement within Part V of the Consumer Credit Act 1974 unless you agree otherwise in writing. 4. Your responsibilities for using and looking after the Property 4.1 You agree to do the following: (a) keep the Property in good repair and condition; (b) make sure that any buildings which are now being built on the Property, or which are built on the Property later on, are completed without delay and are properly built; (c) replace any fixture or fitting you remove from the Property with one of equal or greater value; (d) pay all rates, taxes, charges and outgoings which are the responsibility of the owner or occupier of the Property in full and on time; (e) comply with any legal obligations or restrictions which apply to the use of Property that are responsibility of the owner or occupier; (f) show us (if we ask) receipts for any payments you are required to make under this condition 4; (g) you must send us a copy of any notice or order affecting the Property which you receive (for example from the local planning authority or any other public agency or authority within 14 days of receiving it; (h) you must tell us what steps you intend to take in response to or in compliance with any notice or order mentioned in (g) above, and you must

2 take any further or different steps which we reasonably ask you to take, or join with us in taking, where we consider the notice or order may have a material impact on the value of the Property or enforceability of the Mortgage as security for the Mortgage debt; (i) if your interest in the Property entitles you to a share in a management company, residents association or similar body, you must deposit the share certificate with us; and (j) only use the Property as a single private dwelling for the occupation of individuals permitted by condition Letting of the Property and restrictions on what you may do 5.1 You agree not to do the following: (a) allow or permit the Property to be occupied other than by your tenants to whom you have let the property in accordance with our requirements for letting set out in the Offer. We may from time to time notify you of changes to our current requirements for lettings that apply to Buy To Let mortgages where it is reasonable to do so and in order to reflect in a proportionate manner changes in laws, regulation, guidance or industry codes of practice or their interpretation or any decision or direction of any regulator, the court or any ombudsman or tribunal. Any changes we tell you about to our requirements for letting will only apply to future lettings after the change and will not apply to any current letting arrangement with your tenants. (b) occupy the Property as your own residence nor allow or permit any related person (which expression includes your spouse, civil partner, parent, grandparents, brother, sister, children, grandchildren, or any person (whether or not of the opposite sex to you) whose relationship to you has the characteristics of the relationship between husband and wife) to occupy the Property at any time; 5.2 We are not obliged to consider a request by you to permit occupation of the Property by you or any related person. If in our absolute discretion we do consider such a request we may as a condition of agreeing to your request require you to agree to any reasonable new or additional terms related to repayment of the Mortgage debt and to reflect the change in the way the Property is to be occupied or owned as appropriate. This may include (but will not be limited to) paying a Fee for consideration of your request, supplying additional information, reducing the Mortgage Debt to an amount we consider reasonable, or changing the interest rate you must pay. 5.3 You must not sell or transfer the Property, grant another standard security or dispose of, or create, any right or interest in or over the Property unless you have our prior written consent. If you ask us for our consent under this condition 5.3: (a) we are not obliged to give it; (b) if we do give consent, we may impose any conditions we choose on our consent. The conditions may include but are not limited to: (i) depositing with us any deed or other instrument by which you transfer the Property or any part of it; (ii) reducing the Mortgage debt to an amount which we reasonably think prudent; (iii) requiring a transferee to sign a deed or other instrument approved by us and which may contain a promise by the transferee to comply with your obligations under these conditions; (iv) paying us a fee to cover our administrative costs. 5.4 You must not to do the following without our prior written consent: (a) make additions or structural alterations to the Property; (b) carry out any building work at the Property for which planning consent is required; (c) change the use of the Property. If you ask us for our consent under this condition 5.4: (i) we will give the consent unless it is reasonable for us to refuse it; and (ii) we may impose reasonable conditions on our consent. 6. Keeping the Property insured 6.1 You must, subject to condition 6.3 below, insure the Property and keep it insured with a reputable insurance company. The policy you arrange must: (a) provide cover against loss or damage by any of the normal risks which comprehensive buildings insurance in the United Kingdom normally covers (including, without limitation, fire, lightening, aircraft, explosion, earthquake, storm, flood, subsidence, heave and landslip); (b) the sum insured must be for at least the full rebuilding cost of the Property (or where the Property forms part of a larger building, such cost of rebuilding as we reasonably require) and be on an index-linked basis; (c) contain a lender protection clause and (where possible) have our interest noted on it. 6.2 You must pay all premiums on time and, if we ask you, provide evidence that they have been paid and the policy is in force and must not do or allow anything to be done that would make the insurance invalid. 6.3 If the Property is part of a larger building (for example where the Property is flat within a tenement or block of flats) and it is a title condition that the Property be insured by someone else (for example, on a common insurance policy with other properties) you must: (a) make reasonable effort to ensure that the person responsible has insured the Property on terms consistent with condition 6.1 above; (b) inform us if the person responsible has not insured the Property on such terms and arrange such alternative insurance cover as we may reasonably require. 6.4 If we become aware that the Property is not insured as required by this condition 6, or we have taken possession of the Property under condition 9 below: (a) we will arrange to insure our interest in the Property at your expense; (b) any insurance we arrange will be for a sum that we reasonably determine and may be limited to the amount of the Mortgage debt and will not cover your interest in the Property; (c) any sums paid to us by way of commission or otherwise far arranging any such insurance will belong to us. 6.5 If a claim is made on the insurance then: (a) you must hold any money which you receive under any insurance policy on trust for us; (b) you have the right to choose whether any money received by you or us in respect of the Property is used in making good the loss or damage to the Property or in repayment of the Mortgage debt, unless the Property cannot lawfully be repaired or the Mortgage debt has become payable under condition 8 in which case the money must be used in repayment of the Mortgage debt unless we agree otherwise; (c) we may take over the conduct or negotiation of any claim and agree any settlement of the claim with the insurance company on reasonable terms. 7. Our rights to enter the Property and do works 7.1 We may enter and inspect the Property at any time to ensure that you are complying with your obligations under conditions 4 and If you are in breach of any of your obligations under conditions 4 or 5, we may enter the Property and carry out any work which is needed to remedy the breach. 7.3 Except in an emergency, we will give you at least two days prior written notice before we exercise our rights under this condition If we enter the Property under this condition 7, we are not as a result to be treated as accepting the legal responsibilities of a heritable creditor in possession. 8. When the Mortgage debt becomes immediately payable The Mortgage debt will become immediately payable: (a) if you are two months late in paying any sum which is payable under the Mortgage; (b) subject to (h) below, if you commit a material breach of any other obligation which you have under the Mortgage or any Offer and you do not remedy the breach within one month of our giving you notice telling you to remedy the breach; (c) if a bankruptcy order is made against you or you enter into a voluntary arrangement or trust deed with your creditors; (d) if the Property is compulsorily purchased or requisitioned; (e) if the Property has been abandoned; (f) if you die (or where there is more than one of you the last to survive of you dies); (h) you permit or allow the Property to be occupied in breach of condition Our powers and remedies 9.1 The Mortgage debt is to be treated as falling due one month after the date of the Mortgage. 9.2 At any time after the Mortgage debt has become immediately payable under condition 8 you shall be in default in terms of the Act and we may do all or any of the following: (a) sell the Property. We may use our legal powers to sell the Property even if we have not entered into possession of it; (b) take possession of the Property (after getting any necessary court order); (c) grant, or agree to grant, leases or tenancies of the Property on any terms and conditions as we think are reasonable and receive any rent as if we were the owner; (d) if the Property is let: (i) collect the rent; 2

3 (ii) agree with the tenant to change the terms of the lease; (iii) extend or renew the lease; (iv) accept a surrender of the lease; (v) bring the lease to an end in any other way; (e) carry out any repairs, improvements, alterations or additions to the Property; (f) apply for any planning and other consents. 9.3 We may only exercise the powers contained in condition 9.2(c) to (f) inclusive where it is reasonable for those powers to be exercised to protect our security or to enable the property to be realised on more favourable terms. However, no purchaser who acquires an interest in the property from us will be concerned to see whether the restriction in this condition 9.3 has been complied with. 9.4 If we take possession of the property we may, as your agent and at your expense, remove, store, sell, dispose of or otherwise deal with any furniture, goods or animals left in the property. Nothing in this condition 9.4 gives us any charge or security over any such furniture, goods or animals. We will account to you for any proceeds received under this condition We may set aside any money which we receive from exercising our powers as a provision against any future payment which you have to make under the Mortgage. 9.6 If we have taken possession of the Property we may give up possession or remove the receiver at any time on giving you written notice. 10. Assignment of other rights 10.1 So far as you are able, you assign the following rights to us (whether or not existing at the date of the Mortgage): (a) any rights you have under any agreement, option, guarantee or indemnity concerning: (i) the Property or the services to it; (ii) the way the Property or the services are built; or (iii) the condition of the Property or the services; (b) any rights you have against any person in occupation or possession of the Property; (c) any rights you have to any compensation concerning the Property; (d) any rights you have concerning the Property (including any which arise from damage to the Property or from a loss in its value); and (e) any rights you have under any insurance policy concerning: (i) a defect in title to the Property; (ii) any rights of any person against or over the Property; (iii) any earlier transactions concerning the Property being set aside We may assign any of the rights mentioned in condition 10.1 to any person who purchases the Property or acquires the Mortgage, or any interest or rights in them, from us Unless we have assigned them to a purchaser of the Property or any interest or rights in it under condition 10.2, any rights which you have assigned to us under condition 10.1 will revert to you automatically when the Mortgage is discharged. 11. Power of attorney 11.1 You appoint us to be your attorney with power to do the following things in your name and on your behalf: (a) to exercise and enforce, and to assign to any purchaser, any of the rights assigned to us under condition 10.1; (b) to collect any money payable under any insurance of the Property, and to negotiate and settle any claims with the insurers; (c) to do anything which you agree to do under the Mortgage or these conditions; (d) to execute any other document or take any other step which may be needed: (i) to make good your title to the Property or our right in security to the Standard Security; (ii) to transfer the Property, or any interest in it, to a purchaser; or (iii) to enable us to exercise or enforce any rights or remedies given to us under these conditions The following provisions apply to any money which is received by us as a result of the exercise of the power of attorney in condition 11.1: (a) the money may be used first to meet any Costs incurred by us in exercising the power; (b) after meeting any Costs under (a) above, the money will be used as follows: (i) if the money is paid to reflect damage to the Property or a defect in it, the money will be used to make good the damage or defect or if we reasonably decide, it will be used to reduce the Mortgage debt; (ii) in any other case, the money will be used to reduce the Mortgage debt The power of attorney in condition 11.1 will come to an end when the Mortgage is ended and the Standard Security is discharged but cannot be revoked or withdrawn by you before then Our power to transfer the Mortgage 12.1 We may transfer or charge or assign or otherwise dispose of the Mortgage and/or the Standard Security or any of our rights under the Mortgage and/or the Standard Security to any person at any time at law without your consent Any such transfer will not affect your rights and obligations under the Mortgage and/or the Standard Security or these conditions and will not change the Mortgage and/or the Standard Security or these conditions and you will be bound to any person to whom we may transfer to the same extent you are bound to us We may disclose the following to any person who takes, or is about to take, a transfer, charge or other disposal of the Mortgage and/or the Standard Security or any of our rights under the Mortgage and/or the Standard Security: (a) any information or documents you gave us when you applied for the Loan; (b) any other information or documents we hold concerning the Property, the Mortgage and/or the Standard Security, any other security we hold for the Mortgage debt or the way you have performed your obligations under the Mortgage. 13. Mortgage Charges 13.1 In these conditions Mortgage Charges means any of the Costs or Fees we charge under this condition In this condition Costs means all costs and expenses which we reasonably and properly incur to any other person in connection with the Mortgage or any other security we hold for the Mortgage debt. Our Costs include (but are not limited to) all costs and expenses which we incur: (a) in recovering the Mortgage debt; (b) in any legal proceedings concerning the Mortgage and Standard Security (whether or not you are a party to the proceedings); (c) in exercising any of our other rights and powers under the Mortgage and Standard Security; (d) in protecting or preserving our security; (e) in remedying any breach by you of the Mortgage; (f) in insuring the Property or our interest in it under condition 6; 13.3 In this condition, a Fee means any administration fee which we charge in connection with the Mortgage: (a) in taking any of the steps mentioned in condition 13.2; (b) in deciding whether to give or refuse our consent, or to impose conditions on our consent, under any of these conditions; (c) in supplying you with deeds, documents (or copies of them) and executing releases or discharges; (d) in providing you with any other service in connection with the Mortgage In calculating and setting our Fees under Condition 13.3 any Fee we charge may be calculated to include a proper allowance to reflect our costs but may not be limited to those costs; our costs will include (but will not be limited to) the costs to us of supplying the services of our employees and sub-contractors and the facilities, systems and accommodation used by us and them The amount of any Fee which we charge will not exceed the amount stated in our Tariff. We may add new Fees to our Tariff, or remove existing Fees from it, to reflect changes in the nature of the work described in this condition to reflect improvements to the way in which we administer mortgage loans for the benefit of us and our borrowers We may change the amount of any Fee listed in our Tariff: (a) to reflect in a proportionate manner any changes in the costs reasonably incurred by us in operating and administering our mortgage business; or (b) to reflect in a proportionate manner changes in laws, regulation, guidance or industry codes of practice that raise standards of consumer protection or their interpretation or any decision or direction of any regulator, the court or any ombudsman or tribunal We will give you a copy of our current Tariff at any time on request and we will also make it continually available to all borrowers on our website. We will also send you a copy of our Tariff each year and tell you if there have been any changes to it. Our Tariff may also set out the current amount of any Costs we may incur when we know what the amount will be in particular circumstances You agree to pay our Mortgage Charges when we tell you they are due We may charge you interest on unpaid Mortgage Charges as follows: (a) if a Mortgage Charge is unpaid by the date we tell you it is due we may charge interest on Costs from the date we incur them and we may charge interest on Fees from the date on which we do the work covered by the Fees; (b) all such Mortgage Charges will be added to the account at the relevant date and (as part of the Mortgage Debt) will bear interest at the interest rate payable under the Offer from that date. 14. Notices 14.1 We may give you notice under the Mortgage and these conditions by posting or delivering the notice to your last known address. If we post a notice to you, it will be treated as given 48 hours after it is posted.

4 14.2 We may also give you notice under the Mortgage and these conditions by e mail or any other form of electronic communication where you have given us your or other relevant address and have agreed to receiving notice from us by or other form of electronic communication You agree to tell us of any change in your name or address within 14 days of any change. 15. Forbearance and separate terms 15.1 If we decide to relax any of these conditions or not to enforce any of our rights under them or the Mortgage for a period of time it will not affect or rights under these conditions or the Mortgage. If you fail to comply with any of these conditions or the Mortgage and we decide not to take action this does not prevent us taking action if you fail to comply with any of these conditions or the Mortgage in the future Each term set out in these conditions is separate from the others. If we are unable to enforce any particular term this will not stop us enforcing the other terms. 16. The law of Scotland The law of Scotland applies to the Mortgage and the Standard Security. Proceedings in connection with the Mortgage and Standard Security may be brought in the courts in Scotland. IN WITNESS WHEREOF these presents consisting of this and the preceding pages are subscribed for us by Richard Hemsley, as attorney, pursuant to a Power of Attorney dated 25 November 2015 at London on the fourteenth day of January Two thousand and Sixteen. CONVEYANCING AND FEUDAL REFORM (SCOTLAND) ACT 1970 (AS AMENDED) SCHEDULE 3 THE STANDARD CONDITIONS Maintenance and Repair. 1. It shall be an obligation on the debtor: (a) to maintain the security subjects in good and sufficient repair to the reasonable satisfaction of the creditor; (b) to permit, after seven clear days notice in writing, the creditor or his agent to enter upon the security subjects at all reasonable times to examine the condition thereof; (c) to make all necessary repairs and make good all defects in pursuance of his obligation under head (a) of this condition within such reasonable period as the creditor may require by notice in writing. Completion of buildings, etc., and prohibition of alterations, etc. 2. It shall be an obligation on the debtor: (a) to complete, as soon as may be practicable, any unfinished buildings and works forming part of the security subjects to the reasonable satisfaction of the creditor; (b) not to demolish, alter or add to any buildings or works forming part of the security subjects, except in accordance with the terms of a prior written consent of the creditor and in compliance with any consent, licence or approval required by law; (c) to exhibit to the creditor at his request evidence of that consent, licence or approval. Observance of conditions in title, payment of duties, charges, etc., and general compliance with requirements of law relating to security subjects. 3. It shall be an obligation on the debtor: (a) to observe any condition or perform any obligation in respect of the security subjects lawfully binding on him in relation to the security subjects; (b) to make due and punctual payment of any ground burden, teind, stipend, or standard charge, and any rates, taxes and other public burdens, and any other payments exigible in respect of the security subjects; (c) to comply with any requirement imposed upon him in relation to the security subjects by virtue of any enactment. Planning notices, etc. 4. It shall be an obligation on the debtor: (a) where he has received any notice or order, issued or made by virtue of the Town and Country Planning (Scotland) Acts 1947 to 1969 or any amendment thereof, or any proposal so made for the making or issuing of any such notice or order, or any other notice or document affecting or likely 4 to affect the security subjects, to give to the creditor, within fourteen days of the receipt of that notice, order or proposal, full particulars thereof; (b) to take, as soon as practicable, all reasonable or necessary steps to comply with such a notice or order or, as the case may be, duly to object thereto; (c) in the event of the creditor so requiring, to object or to join with the creditor in objecting to any such notice or order or in making representations against any proposal therefor. Insurance. 5. It shall be an obligation on the debtor: (a) to insure the security subjects or, at the option of the creditor, to permit the creditor to insure the security subjects in the names of the creditor and the debtor to the extent of the market value thereof against the risk of fire and such other risks as the creditor may reasonably require; (b) to deposit any policy of insurance effected by the debtor for the aforesaid purpose with the creditor; (c) to pay any premium due in respect of any such policy, and, where the creditor so requests, to exhibit a receipt therefor not later than the fourteenth day after the renewal date of the policy; (d) to intimate to the creditor, within fourteen days of the occurrence, any occurrence which may give rise to a claim under the policy, and to authorise the creditor to negotiate the settlement of the claim; (e) without prejudice to any obligation to the contrary enforceable against him, to comply with any reasonable requirement of the creditor as to the application of any sum received in respect of such a claim; (f) to refrain from any act or omission which would invalidate the policy. Restriction on letting. 6. It shall be an obligation on the debtor not to let, or agree to let, the security subjects, or any part thereof, without the prior consent in writing of the creditor, and to let in this condition includes to sub-let. General power of creditor to perform obligations, etc., on failure of debtor and power to charge debtor. 7. (1) The creditor shall be entitled to perform any obligation imposed by the standard conditions on the debtor, which the debtor has failed to perform. (2) Where it is necessary for the performance of any obligation as aforesaid, the creditor may, after giving seven clear days notice in writing to the debtor, enter upon the security subjects at all reasonable times. (3) All expenses and charges (including any interest thereon), reasonably incurred by the creditor in the exercise of a right conferred by this condition, shall be recoverable from the debtor and shall be deemed to be secured by the security subjects under the standard security, and the rate of any such interest shall be the rate in force at the relevant time in respect of advances secured by the security, or, where no such rate is prescribed, shall be the bank rate in force at the relevant time. Calling-up. 8. The creditor shall be entitled, subject to the terms of the security and to any requirement of law, to call-up a standard security in the manner prescribed by Section 19 of this Act. Default. 9. (1) The debtor shall be held to be in default in any of the following circumstances, that is to say: (a) where a calling-up notice in respect of the security has been served and has not been complied with; (b) where there has been a failure to comply with any other requirement arising out of the security; (c) where the proprietor of the security subjects has become insolvent. (2) For the purposes of this condition, the proprietor shall be taken to be insolvent if: (a) he has become notour bankrupt, or he has executed a trust deed for behoof of, or has made a composition contract or arrangement with, his creditors; (b) he has died and a judicial factor has been appointed under Section 11A of the Judicial Factors (Scotland) Act 1889 to divide his insolvent estate among his creditors, or his estate falls to be administered in accordance with an order under Section 421 of the Insolvency Act 1986 ; (c) where the proprietor is a company, a winding-up order has been made with respect to it, or a resolution for voluntary winding-up (other than a members voluntary winding-up) has been passed with respect to it, or a receiver or manager of its undertaking has been duly appointed, or possession has been taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge.

5 Rights of creditor on default. 10. (1) Where the debtor is in default, the creditor may, without prejudice to his exercising any other remedy arising from the contract to which the standard security relates, exercise, in accordance with the provisions of Part ll of this Act and of any other enactment applying to standard securities, such of the remedies specified in the following sub-paragraphs of this standard condition as he may consider appropriate. (2) He may proceed to sell the security subjects or any part thereof. (3) He may enter into possession of the security subjects and may receive or recover the rents of those subjects or any part thereof. (4) Where he has entered into possession as aforesaid, he may let the security subjects or any part thereof. (5) Where he has entered into possession as aforesaid there shall be transferred to him all the rights of the debtor in relation to the granting of leases or rights of occupancy over the security subjects and to the management and maintenance of those subjects. (6) He may effect all such repairs and may make good such defects as are necessary to maintain the security subjects in good and sufficient repair, and may effect such reconstruction, alteration and improvement on the subjects as would be expected of a prudent proprietor to maintain the market value of the subjects, and for the aforesaid purposes may enter on the subjects at all reasonable times. (7) He may apply to the court for a decree of foreclosure. Exercise of right of redemption. 11. (1) The debtor shall be entitled to exercise his right (if any) to redeem the security on giving notice of his intention so to do, being a notice in writing (hereinafter referred to as a notice of redemption ). (2) Nothing in the provisions of this Act shall preclude a creditor from waiving the necessity for a notice of redemption, or from agreeing to a period of notice of less than that to which he is entitled. (3) (a) A notice of redemption may be delivered to the creditor or sent by registered post or recorded delivery to him at his last known address, and an acknowledgement signed by the creditor or his agent or a certificate of postage by the person giving the notice accompanied by the postal receipt shall be sufficient evidence of such notice having been given. (b) If the address of the creditor is not known, or if the packet containing the notice of redemption is returned to the sender with intimation that it could not be delivered, a notice of redemption may be sent to the Extractor of the Court of Session and an acknowledgement of receipt by him shall be sufficient evidence of such notice having been given. (c) A notice of redemption sent by post shall be held to have been given on the day after the day of posting. (4) When a notice of redemption states that a specified amount will be repaid, and it is subsequently ascertained that the whole amount due to be repaid is more or less than the amount specified in the notice, the notice shall nevertheless be effective as a notice of repayment of the amount due as subsequently ascertained. (5) Where the debtor has exercised a right to redeem, and has made payment of the whole amount due, or has performed the whole obligations of the debtor under the contract to which the security relates, the creditor shall grant a discharge in the terms prescribed in Section 17 of this Act. 12. The debtor shall be personally liable to the creditor for the whole expenses of the preparation and execution of the standard security and any variation, restriction and discharge thereof and, where any of those deeds are recorded, the recording thereof, and all expenses reasonably incurred by the creditor in calling-up the security and realising or attempting to realise the security subjects, or any part thereof, and exercising any other powers conferred upon him by the security. Interpretation. In this Schedule, where the debtor is not the proprietor of the security subjects, debtor means proprietor, except: (a) in standard conditions 9(1), 10(1) and 12, and (b) in standard condition 11, where debtor includes the proprietor. 5 Virgin Money plc Registered in England and Wales (Company No ). VMP869V3 (valid from ) Registered office Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL.