"Held under mortgage" refers to a legal situation in which a property is used as collateral for a loan or debt, and the ownership rights of the property are transferred to the lender (mortgagee) until the borrower (mortgagor) repays the loan in full. It is a binding agreement between two parties wherein the lender provides financing to the borrower, and in return, the borrower agrees to repay the loan according to specified terms and conditions, typically with interest.
When a property is held under mortgage, it means that the lender has a legal claim or lien on the property. This lien serves as security for the lender to ensure repayment of the borrowed amount. The mortgage agreement outlines the rights and obligations of both parties, including the repayment schedule, interest rate, and any penalties or fees for late payments.
During the mortgage term, the borrower retains the right to possess, use, and enjoy the property, but the lender has the right to take possession or sell the property if the borrower fails to meet the agreed-upon repayment terms. Once the borrower fulfills their repayment obligations, the lender releases their claim on the property, resulting in the mortgage being satisfied, and ownership rights return to the borrower.
In summary, "held under mortgage" means that a property is pledged to secure a loan, and ownership rights are transferred to the lender until the loan is fully repaid, at which point ownership is restored to the borrower.
