Under s101 and s103 of the LPA, power of sale arises when which condition is met?

• A. contractual date for redemption has passed with no contrary intention.
• B. interest payments are more than two months in arrears.
• C. payment notice sent and three months has relapsed.
• D. breach of term.

Answer: (B)

The main concept is that the mortgagee’s statutory power of sale kicks in when there is a default in payment of the mortgage money. Under the Law of Property Act, the trigger is typically a failure to keep up with instalments of interest, specifically when interest has fallen into arrears for two months or more. That two-month arrears rule is the standard threshold that gives the mortgagee the right to sell, subject to the proper notice and formalities.

So the best answer is that interest payments are more than two months in arrears. Just reaching the contractual redemption date by itself does not automatically create the power to sell, and a payment notice or a general breach of term does not align with the specific two-month arrears trigger that the statute uses.