... the mortgagee. Since 1925 the very way in which mortgages can be created is designed to re-enforce the essential nature of a mortgage as a security charged on land for a loan. As since 1925, a mortgagor owns both the legal estate and an 'equity of redemption'. The legal estate is of no intrinsic value, but the value of the equity of redemption is (roughly) the value of the property when unencumbered, minus the total debt outstanding.2 In this question, several issues arise as to the enforceability of the mortgage entered into by Alan. As a preliminary point, we must note that when Alan enters into the mortgage he is creating a proprietary right in favour of Barry but nethertheless, retains paramount legal title to it. In essence, Alan has an Equity of redemption, this being the sum total of his rights under the mortgage as residual legal owner.3 Also, as ...

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