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.
Distinction Between English Mortgage and Mortgage by Conditional Sale