REALWorld Law

Real estate finance

Real estate as security

Which assets and rights are considered to be real estate or real rights over which security can be granted to a lender?



Real estate includes land as well as the buildings and other improvements and fixtures on the land. 

Title to land may be freehold (where an entity owns the land) or leasehold (where an entity owns the right to occupy and use land that is owned by a third party). 

Security may be granted to a lender over freehold land, an entity's interest in leasehold property, or over a lease of freehold land and may include fittings, furniture and moveable objects on the land. Where the government owns the land which is the subject of the lease, consent from the relevant government department may be required before a mortgage over the leasehold property can be registered.