Land Law notes fully updated for recent exams at Oxford and Cambridge. These notes cover all the LLB land law cases and so are perfect for anyone doing an LLB in the UK or a great supplement for those doing LLBs abroad, whether that be in Ireland, Hong Kong or Malaysia (University of London).
These were the best Land Law notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LLB samples from outstanding law students with the highest results in ...
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The creation of Mortgages
Forms of Mortgages
Two main forms of mortgage:
The Legal Mortgage
Essentially where L gains a legal charge in the land mortgaged by M to L – two most common forms are:
Repayment Mortgage
Where M agrees with L to pay a constant monthly payment (subject to interest)
Over an agreed period of time
Endowment Mortgage
This is linked to an endowment life assurance policy
Essentially, the policy is designed to produce a sum large enough to pay off the sum borrowed on maturity (i.e. policy holder dying)
With luck, there should be some surplus for the borrower
The lender is paid interest alone until the policy matures.
This means that since M retains legal title to the mortgage, multiple mortgages can be arranged over the same fee simple
However, the attractiveness of the mortgages are that the property can often be sold on default of payment by M
Which will not often repay the outstanding balance of two mortgages
The equitable mortgage
This is encountered where
Equitable interest mortgaged
Agreement to mortgage in the future
Where formalities for legal mortgage have not been satisfied
The charge over land
This is different from a legal charge
Equity recognises the charge as security short of a mortgage
Thus, the court can order the sale of the property or the appointment of a receiver
But there is no right of foreclosure nor right to take possession.
How to create a mortgage
Legal Mortgage
A deed
An intention to create a mortgage
This is rather obvious when you have a Deed
However, the courts will infer mortgages where the substance of a transaction of “absolute transfer” was in fact intended as security for an obligation
If the purchase price is a loan and the property is clearly intended to be recovered on repayment then = mortgage
BUT can have legitimate sale where property intended to be transferred but their remains an option of repayment.
Grangeside Properties Ltd v Collingwoods Securities Ltd [1964]: a case concerning a lease when s.86 only allows mortgages by legal charge or sublease.
Harman LJ: Once a mortgage, always a mortgage
Thus, where the mortgage is proved from external evidence
Then it shall still take effect as a lease for 3000 years as per s.85(2).
Equitable Mortgage
Agreement
To mortgage,...
Buy the full version of these notes or essay plans and more in our Land Law Notes.
Land Law notes fully updated for recent exams at Oxford and Cambridge. These notes cover all the LLB land law cases and so are perfect for anyone doing an LLB in the UK or a great supplement for those doing LLBs abroad, whether that be in Ireland, Hong Kong or Malaysia (University of London).
These were the best Land Law notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LLB samples from outstanding law students with the highest results in ...
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