The equity of redemption

The following Property practice note provides comprehensive and up to date legal information covering:

  • The equity of redemption
  • Disposal and devolution
  • No clogging
  • Postponement or limitation of the right to redeem and collateral advantage
  • Enforcement
  • Loss

The equity of redemption

Disposal and devolution

The equity of redemption arises as soon as the mortgage is made. It is an interest in the land which the mortgagor can:

  1. transfer, lease or mortgage inter vivos, or

  2. by will (it passes on intestacy)

No clogging

It is a fundamental principle of a mortgage that there must be no clog on the equity of redemption. This means that there must be no fetter on the mortgagor’s right to:

  1. redeem the mortgage, and

  2. recover unencumbered enjoyment of the property

by repaying the mortgage

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