397. Consolidation.

Consolidation is the right of a lender to refuse to allow a mortgage on one property to be redeemed unless a mortgage on another property (or properties) is also redeemed1. It is an equitable doctrine, based on the principle that it would be unfair to allow a borrower to

redeem a mortgage over a valuable property and leave the lender with security on another property which was not worth the amount of the loan2

.

As the right of consolidation is equitable, it only arises after there has been default on all the securities in respect of which it is claimed