mortgages

Mortgage

A mortgage is a loan in which your house functions as the collateral

Collateral

Collateral is an asset pledged as security for a loan

which judge defined mortgage and what was the case

Lindsey Mr- Stanley v Wilde (1899)

Legal mortgage

Legal mortgage is where all legal procedures such as registration of loan is present. As the property is being used as security so the lender has all rights to it

Equitable mortgage

A mortgage that is not fully formal or not registered, but still shows that the property is being used as security for a loan.

Who is a mortgagor

The borrower

Who is the mortgagee

The lender

What is equity of redemption?

The mortgagor’s right to redeem their property after paying off what they owe

What philosophy did lord Eldon have about the equity of mortgage?

Once a mortgage, always a mortgage

Lindley Mr definition of mortgage

A disposition of interest in a land or property

What rule protects the equity of redemption

Once a mortgage, always a mortgage- which means it should not become a purchase

What is a clog on the equity of redemption

Any term the restricts, prevents redemption

Why was the option void in Samuel v jarrah

Because it gave the mortgagor right to the turn the loan into a purchase which interfered with redemption

Why was the agreement upheld in Reece v Lisle?

It was separate from the mortgage so it would not have affected redemption

Name two cases under protection of the mortgagor

Samuel v jaarah- the trying to purchase stocks preventing redemption for the mortgagor

Reeve v Lisle- separate agreement (5 years then partnership) which did not hinder redemption

Rights of the mortgagor are other than:

A) a right to rent and profits from the property

B) a right to sure for trespassing

C) a right to grant leases