518. Compensation from mortgagee.

518.     Compensation from mortgagee.

The statutory power1 of a mortgagor in possession to create a lease of agricultural land binding on the mortgagee is exercisable in the case of mortgages of agricultural land2 to which the Agricultural Holdings Act 1986 applies notwithstanding any contrary intention expressed in the mortgage deed or otherwise in writing3.

Formerly4, where the contract of tenancy was not binding on the mortgagee, a mortgagee of an agricultural holding was not personally liable to pay any sums due to the occupier of the holding by way of compensation or costs