Mortgages

Mortgages

Mortgages and land

Mortgages are the form of security most commonly encountered in practice by property practitioners. Our content on mortgages includes the following Practice Notes:

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Mortgages and land—an introduction to mortgages and legal charges over land
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Mortgages and land—entering into new mortgages and legal charges of land
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Mortgages and land—dealings with land subject to a mortgage or legal charge
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Mortgages and land—enforcement of mortgages and legal charges over land

For our content on other types of security, such as charges, pledges and liens, see Practice Note: Types of security.

Legal and equitable mortgages

A mortgage is a transfer of an interest in property by way of security for a debt. It is subject to an express or implied provision which requires the lender to transfer the property back to the borrower when the borrower’s obligations have been discharged.

A legal mortgage over land must be created in accordance with the Law of Property Act 1925 (LPA 1925) which means, in practice, that it must be created by way of a charge by way of legal mortgage. This is the effect of LPA

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Latest Property News

Property weekly highlights—17 April 2025

This week's edition of Property weekly highlights includes: cases on relief from forfeiture granted to residential sub-tenants of a mixed-use building and stamp duty land tax, new versions of the MCL leases, an update from HM Land Registry on its registration service and a Property and Related Services Threat Assessment Report on financial sanctions.

HMLR publishes blog post on registration service improvements

HM Land Registry (HMLR) has published a blog post, highlighting recent improvements to its registration service. Key operational changes include the recruitment of 2,000 new caseworkers and the launch of a Land Registration Academy for their training, organisational restructuring to better meet market demands, and increased investment in automation, artificial intelligence, and secure digital services to reduce delays and enhance accuracy. HMLR also surpassed its March 2025 goal of processing 95% of applications within 12 months of their submission. From April 2025, firms will receive emails with insights into common avoidable errors and how to prevent them. HMLR is also improving its Estimated Completion Date tool for more accurate timelines. Additionally, it plans to publish a new Business Plan and Strategy in response to expectations set by the Minister of State for Housing and Planning, Matthew Pennycook MP, in March 2025, focusing on automating simpler tasks, improving digital checks to reduce requisitions, simplifying fees, and supporting a more streamlined, digital homebuying process.

OFSI releases Property sector threat assessment report on financial sanctions

The Office of Financial Sanctions Implementation (OFSI) has published its Property and Related Services Threat Assessment Report. The report forms part of OFSI's sector-specific assessment series examining threats and vulnerabilities in UK financial sanctions compliance, delivered as part of their commitment under Economic Crime Plan two. The report aims to help property sector stakeholders develop risk-based approaches to sanctions compliance.

Property vests in trustees in bankruptcy and court grants orders for possession and sale (Armstrong and another v Bhattacharya and another)

Restructuring & Insolvency analysis: The High Court granted the applications of trustees in bankruptcy for orders under section 14 of the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996) and section 335A of the Insolvency Act 1986 (IA 1986) that property which the bankrupts legally owned—but asserted was beneficially owned by their daughters, did in fact vest in the trustees and an order for possession and sale should be made. The case highlights the importance of clear, contemporaneous documentary evidence and a consistent case in circumstances where a person wishes to demonstrate that ownership of a property differs to that which is recorded at the Land Registry (or elsewhere). It is also important to adduce evidence from all relevant witnesses in support of your case. Written by Laura Newbery, legal director at Addleshaw Goddard LLP.