What is an English Mortgage 

As per Section 58(c) Where the mortgagor binds himself to repay the mortgage money on a certain date and transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that he will re-transfer it to the mortgagor upon payment of the mortgage money as agreed, the transaction is called an English mortgage.

Elements of English Mortgage 

1. The mortgagor takes a personal liability to repay the mortgage - money

2. He promises to pay the mortgage money on a certain date

3. He transfers the mortgaged property absolutely to the mortgagee and

4. When the mortgagor pays back the mortgaged money to the mortgagee, he (mortgagee) re-transfers the property to him (mortgagor).

Illustrations of English Mortgage 

'X' borrowed a certain amount on the basis of an undertaking that he will repay the mortgage money on a stipulated time and transfers his property situated in Chennai to Y He entered into an agreement to the effect that the transfer is absolute and on his default in payment the mortgagee Y has to reconvey the property upon payment made by X on the appointed day.

See Also 

Distinction Between English Mortgage and Mortgage by Conditional Sale

Difference between Corporeal Property and Incorporeal Property

The Doctrine of Novation, Kinds of Novation 


Post a Comment

See Also..