Proprietary interest that has capacity to be legal (S1(2)(c)LPA1925)
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Formalities for creation of a mortgage
Legal, Registered (S23(1)(a) LRA2002) and Unregistered (ss85&ss86LPA 1925)(EQUITABLE)...
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Mortgagors rights - Equity of Redemption
right to redeem, right to have collateral adv in favour of the mortgage struck out and a right to have oppressive/unconscionable terms struck out
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Mortgagee's rights
Priorities, Sue, Possession, Sale arises, Foreclosure and Appoint receiver
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To be legal
Must be created by deed - S52.(1) LPA 1925, signed, witness and headed a deed (S.1 LP(MP)A 1989
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To be equitable
Valid estate contract to create a mortgage, a contract in writing and containing agreed terms (S.2 LP(MP)A 1989)
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Formalities for creation - Legal over unregistered land
Mortgage by Demise and Charge by way of legal mortgage (S.1(2)(c) LPA 1925)
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Formalities for creation - Legal over registered land
Charge by way of legal mortgage (S27(2)(f) LRA 2002)
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Equitable mortgage
Whole of equitable interest is conveyed to the mortgagee who promises to convey when the debt is paid, transfer of equitable must satisfy (S53(1)(c) LPA 1925
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Mortgagors Rights
When a mortgagor wants to redeem the loan, he should be able to do so, recovering his property in an unencumbered syaye
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Protecting a mortgage - Registered Land
A mortgage is a triggering event (S.4 LRA 2002) & requires registration
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Protecting a mortgage - Registered Land
Legal mortgage must be entered on the charges register of the title in order to be protected against the purchaser for valuable consideration (S.27(2)(f) LRA 2002)
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Protecting a mortgage - Registered Land
Equitable mortgage, it should be entered on the charges register (S.32 LRA 2002)
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Protecting a mortgage - Unregistered Land
First legal mortgage will be evidenced by the mortgagee holding the title deeds instead of registration
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Date of Redemption
represents the mortgagors equitable interest in the property, there must be no clogs on the equity of redemption
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Redemption
The first date the mortgage can be paid in full can not be prevented (Toomes v Conset) BUT it can be postponed if the date of redemption is not so far in the future as to render the right to redeem illusionary
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Other cards in this set
Card 2
Front
Legal, Registered (S23(1)(a) LRA2002) and Unregistered (ss85&ss86LPA 1925)(EQUITABLE)...
Back
Formalities for creation of a mortgage
Card 3
Front
right to redeem, right to have collateral adv in favour of the mortgage struck out and a right to have oppressive/unconscionable terms struck out
Back
Card 4
Front
Priorities, Sue, Possession, Sale arises, Foreclosure and Appoint receiver
Back
Card 5
Front
Must be created by deed - S52.(1) LPA 1925, signed, witness and headed a deed (S.1 LP(MP)A 1989
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