Mortgage of an Interest or Mortgage as to Part of Land (VIC & WA) | Help Centre

[Saysa]

Last updated: 16 March 2020
Jurisdiction: VIC

Overview

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PEXA now supports the lodgement of a mortgage over an Interest or a Part of Land in Victoria and Western Australia.

Mortgage of an Interest

Mortgage of an Interest refers to a mortgage over an interest that is registered on title and the following is supported when lodging a Mortgage of an Interest in PEXA:

• Allows interest types of Lease and Sub Lease to be mortgaged.
• Up to 20 titles can be added to the Workspace.
• Multiple Interests across all titles in the Workspace can be mortgaged in the same document as long as they share the same Interest Holder(s) and Tenancy structure.
• Multiple Interest Types can be mortgaged.

 

Currently, not supported in PEXA:

• Mortgage of an Interest where the mortgage is to affect only part of the Land in the Interest.
• Mortgage of an Interest and Mortgage of the Fee Simple (Land) in the same document.

 

Supported interest types

The supported Interest Types for the Mortgage of an Interest Document is not limited to Lease and Sub-Lease interests only. Below is a list of all supported Interest Types for the Mortgage of an Interest Document:

• Carbon Covenant Benefit
• Carbon Right
• Charge
• Crown Lease
• Lease
• Plantation Interest
• Management Order
• Profit-a-Prendre
• Sub Lease

Mortgage as to Part of Land

When lodging a Mortgage as to Part of Land in PEXA, the following is supported:

• Mortgage of a sub-set of a title's lots (parcels).
• Mortgage of multiple titles, some whole of the land and some part of the land.

Currently, not supported in PEXA:

• Mortgage of Part of the Land using a free-text description.

Video

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[video]

Steps

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Creating a National Mortgage over an Interest

1. Create a Workspace in the role of an Incoming Mortgagee.
2. Review the Land Titles.
3. Review the Interest Holder’s details for the lease:
   1. Navigate to the Participants screen and then review the Interest Holder’s detail on the lease. If required, provide further information.
4. Create a National Mortgage over an Interest:
   1. Navigate to the Documents screen, select Create Document > Mortgage and then select the option for National Mortgage.
   2. For Does this document affect an interest in land, select Yes.
   3. Select the interest to be mortgaged.

      Both interest holders for the selected lease are listed as mortgagors.

   4. Complete the National Mortgage per your normal process.
5. Save the changes.

Note: The Interest in Land allows for either a Lease or Sub-Lease to be mortgaged.

Creating a Mortgage as to Part of Land

In instances where a title has multiple lots, and you want to mortgage only some of the lots, then you would register for a Mortgage as to Part of Land.

 

1. Create a Workspace in the role of an Incoming Mortgagee.
2. Review the Land Titles.
3. Check the Proprietors on Title.
4. Create a National Mortgage for a Part of Land:
   1. Navigate to the Documents screen, select Create Document > Mortgage and then select the option for National Mortgage.
   2. On the Titles panel, select an Extent that specifies the extent of the land to be mortgaged. By default, Whole of land is selected.
      • Part – Lot on Plan: Refers to a structured lot on plan. You can add multiple entries.
      • Part – Other Description: Lets you enter free text (up to a maximum of 500 characters) to describe the portion of land to be mortgaged.
   3. Complete the National Mortgage per your normal process.
5. Save the changes.

 

Related topics

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• Transfer articles (all states)
• Transfer of Interest—Mortgage or Encumbrance (SA)