Transfer of Property Act Section 64 — Renewal of mortgaged lease

CHAPTER IV OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES — Rights and Liabilities of Mortgagor

General

Summary

If the mortgaged property is a lease, and the mortgagee (the lender) gets the lease renewed, then when the mortgagor (the borrower) pays off the mortgage and redeems the property, the borrower gets the benefit of that new lease. This applies unless the borrower had agreed otherwise in a contract.

Official Text

Where the mortgaged property is a lease 3***, and the mortgagee obtains a renewal of the lease, the mortgagor, upon redemption, shall, in the absence of a contract by him to the contrary, have the benefit of the new lease.