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KembaraXtra – Legal Terms – Mortgage
A mortgage is a legal interest in property created as security for the repayment of a loan or debt. The borrower is known as the mortgagor, while the lender is called the mortgagee.
Although land is the most common subject of mortgages, many forms of property may be mortgaged. Historically, failure to repay the debt by the agreed date caused the borrower to lose all rights over the property. Equity later softened this harsh rule by recognizing the mortgagor’s right to redeem the property upon payment of the debt.
A mortgagee generally has the right to take possession of the mortgaged property, even before default, although this power is restricted by law and court supervision. Mortgagees may also exercise remedies such as sale, appointment of a receiver, or foreclosure where repayment is not made.
Under the Law of Property Act 1925, legal mortgages over land usually take the form of a charge by way of legal mortgage. Registered land mortgages must also be properly registered to be effective at law.
Mortgages play a central role in property financing and are regulated carefully to balance the interests of lenders and borrowers.
A mortgage is a legal interest in property created as security for the repayment of a loan or debt. The borrower is known as the mortgagor, while the lender is called the mortgagee.
Although land is the most common subject of mortgages, many forms of property may be mortgaged. Historically, failure to repay the debt by the agreed date caused the borrower to lose all rights over the property. Equity later softened this harsh rule by recognizing the mortgagor’s right to redeem the property upon payment of the debt.
A mortgagee generally has the right to take possession of the mortgaged property, even before default, although this power is restricted by law and court supervision. Mortgagees may also exercise remedies such as sale, appointment of a receiver, or foreclosure where repayment is not made.
Under the Law of Property Act 1925, legal mortgages over land usually take the form of a charge by way of legal mortgage. Registered land mortgages must also be properly registered to be effective at law.
Mortgages play a central role in property financing and are regulated carefully to balance the interests of lenders and borrowers.
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