Realisation of leasehold mortgages

(1) Where a term of years absolute has been mortgaged by a charge by way of legal mortgage and the mortgagee has obtained an order for sale of the leasehold, (a) the order shall operate to authorise the Registrar to sell and assign to any purchaser the unexpired portion of the term of years which was the subject of the charge, subject to any legal mortgage having priority to the mortgage in right of which the sale is made and to any money thereby secured; 60 (b) the charge by way of legal mortgage in satisfaction of which the sale is made and any subsequent charge shall, upon the transfer of the term of years to a purchaser, be extinguished. (2) Where any mortgagee obtains an order for sale of a term of years absolute, and the sale is effected, (a) a licence to assign, if required on a sale of the leasehold, shall not be unreasonably refused; and (b) the order for sale shall not give rise to a forfeiture for want of a licence to assign. (3) Where the mortgage includes fixtures or chattels personal, any right to sell shall extend to the absolute or other interest therein affected by the charge.