681. Where limited owner acquires charge, or charge is not absolute.

The presumption is against merger where a tenant for life or other limited owner (not being tenant in tail1) acquires or pays off a charge, as the merger would operate as a gift to those in remainder2. This presumption against merger has been held to exist notwithstanding that the reconveyance to the tenant for life was expressed to be absolutely discharged from the mortgage debt3. A presumption against merger also applies where the charge is subject to limitations which prevent the full union of the charge and the estate in the lifetime of the owner (for example, where the