Who owns mortgaged property

Glossary Mortgage Related Content. The transfer of the ownership of an asset by way of security for particular obligations on the express or implied condition that it will be re-transferred on the discharge of the secured obligations. A legal mortgage is the most secure and comprehensive form of security interest.

It transfers legal title to the Mortgagee and prevents the mortgagor from dealing with the mortgaged asset while it is subject to the mortgage. However, legislation has affected the characteristics of a legal mortgage over land. Read our Privacy policy. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

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This section is concerned with the mortgage of freehold land. Copyhold mortgages were recorded in the manorial court rolls. However, 'covenants to surrender' copyhold property in manorial courts for this purpose appeared in freehold mortgage deeds if the mortgaged estate was made up of both types of land. From the seventeenth century up to , there were two main ways in which a mortgage could be arranged: by demise, or by conveyance.

Although the wording of some mortgage deeds might suggest that the mortgagee took possession of the property until the money was repaid, this was not usually the case in reality. In the seventeenth century it was established in law that the mortgagor would remain living in the property or administering the mortgaged estate.

It was normally only if the mortgagor failed to pay the annual interest that the mortgagee could begin to take action to recover the debt. It was also accepted that the mortgagor retained a right to redeem the property whenever he paid the money, even after the period of time when the mortgagee had foreclosed and begun to take possession.