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Land Law - Equitable mortgages
A mortgage that does not give the mortgagee a legal claim to the mortgagor's land is known as an equitable mortgage. These typically occur in two circumstances.
where the mortgagor's only ownership interest in the land is equitable
This would include assigning the equitable interest to the mortgagee rather than a formal deed. This could happen, for instance, if someone does not actually own the land; instead, they have a life interest in the property through a trust deed.
where there is a defective legal mortgage
This can occur in a variety of circumstances, but it typically occurs when one of the mortgagors has committed forgery or when an attempt has been made to give a formal, legal mortgage but it has failed due to a deed that is faulty or a failure to register with HM Land Registry.
Important phrase: Equitable interest
Equitable interest, as opposed to strict legal ownership and being listed on the title deeds, is a form of ownership or legal interest in land that results from certain actions, or inactions, of a person, or as a result of fairness and justice.
A mortgage that does not give the mortgagee a legal claim to the mortgagor's land is known as an equitable mortgage. These typically occur in two circumstances.
where the mortgagor's only ownership interest in the land is equitable
This would include assigning the equitable interest to the mortgagee rather than a formal deed. This could happen, for instance, if someone does not actually own the land; instead, they have a life interest in the property through a trust deed.
where there is a defective legal mortgage
This can occur in a variety of circumstances, but it typically occurs when one of the mortgagors has committed forgery or when an attempt has been made to give a formal, legal mortgage but it has failed due to a deed that is faulty or a failure to register with HM Land Registry.
Important phrase: Equitable interest
Equitable interest, as opposed to strict legal ownership and being listed on the title deeds, is a form of ownership or legal interest in land that results from certain actions, or inactions, of a person, or as a result of fairness and justice.
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