seminar questions 4

Question 1

Is a mortgage a purely contractual interest, or does it also give rise to a proprietary interest?

Answer 1

it is a contractual arrangement (lender promises to advance loan, borrower promises to repay, with interest, etc) which gives rise to a proprietary interest for the lender / mortgagee in the borrower’s land.

Question 2

A mortgage is a proprietary interest which……

Answer 2

Is capable of taking effect at law: s1(2)(c) LPA 1925.