Equitable Mortgage in United Kingdom

Definition of Equitable Mortgage

In accordance with the work A Dictionary of Law, this is a description of Equitable Mortgage : (equitable charge)

A *mortgage under which the mortgagee does not obtain a legal estate in the land. An equitable mortgage may arise as follows:

(1) If the mortgagor has only an *equitable interest in the land, he can only grant an equitable mortgage. For example, a mortgage granted by a beneficiary under a *trust of land could only be equitable.

(2) An equitable mortgage will arise if the mortgage is made by deed (a requirement for legal mortgages). The contract for the mortgage must nevertheless be made in writing.

English Law: Equitable Mortgage in the Past

The deposit of title-deeds, by the owner of an estate, with a person from whom he has borrowed money, with an accompanying agreement to execute a regular mortgage or by the mere deposit, without even any verbal agreement respecting a regular security. 2 Pow. on Mort. 49 to 61; 1 Mad. Ch. Pr. 537; 4 Madd. R. 249; 1 Bro. C. C. 269; 12 Ves. 197; 3 Younge & J. 150; 1 Rus. R. 141.

Developments

In Pennsylvania (see more about this U.S. State laws here) , there is no such thing as an equitable mortgage. 3 P. S. R; 233; 3 Penna. R. 239; 17 S. & R. 70; 1 Penna. R. 447. [1][rtbs name=”history-of-english-law”]

Resources

Notes and References

1. Partialy, this information about equitable mortgage is based on the Bouvier´s Law Dictionary, 1848 edition. There is a list of terms of the Bouvier´s Law Dictionary, including equitable mortgage.

See Also