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United Kingdom
clog on equity of redemptioncharacterisation
Brighton & Hove City Council v Audus
[2009] EWHC 340 (Ch)
Key Principle
In deciding whether a provision is an impermissible clog on the equity of redemption, the court looks at the overall character and substance of the composite transaction (including written and oral terms); the doctrine against clogs applies only where the substance of the transaction is genuinely a mortgage, and not where it is something more complex such as a purchase subject to life occupation.
Area of Law
General
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