A recap of a few things you’d think financial professionals ought to know
A sort of security interest — a legal security interest, in fact, that involves transferring legal title, but not beneficial ownership, to property as security for a debt. Your mum and dad probably had one on their house, but have paid it off now.
- “Mortgage” includes any charge or lien on any property for securing money or money’s worth; “legal mortgage” means a mortgage by demise or subdemise or a charge by way of legal mortgage and “legal mortgagee” has a corresponding meaning; “mortgage money” means money or money’s worth secured by a mortgage; “mortgagor” includes any person from time to time deriving title under the original mortgagor or entitled to redeem a mortgage according to his estate interest or right in the mortgaged property; “mortgagee” includes a chargee by way of legal mortgage and any person from time to time deriving title under the original mortgagee; and “mortgagee in possession” is, for the purposes of this Act, a mortgagee who, in right of the mortgage, has entered into and is in possession of the mortgaged property; and “right of redemption” includes an option to repurchase only if the option in effect creates a right of redemption;
Formal execution requirements
To benefit from the terms of the Law of Property Act 1925, a mortgage must be executed as a deed. That means it must be “clear on its face” that it is intended to be a deed and it must be “validly executed as a deed”.