Equitable mortgage

From Lawiki - The law notes repository
Jump to navigation Jump to search
Lawiki for and by law students - find us on Facebook if you want to help us edit this Law Wiki.

Not professional advice - LAWIKI cannot guarantee the validity of any information




An agreement which does not satisfy the formality requirements to be alegal mortgage, but which the courts might be prepared to enforce on equitable grounds. In particular, if the Mortgagor and the Mortgagee have a written contract to create a mortgage, but no Deed has been executed, this might constitute an equitable mortgage. The Mortgagee under and equitable mortgage is in a precarious position, because his security will be lost if the mortgagor sells the mortgaged property to a purchaser without notice, and doesn't repay the loan. However, if the mortgagee registers his mortgage as a class C(iii) LandCharge (UnregisteredConveyancing) or a Notice (RegisteredConveyancing) then it will be enforceable against the purchaser of the mortgaged land.

Land and Property Law