Knightsbridge Estates v Byrne [1939] Ch 441

Court of Appeal

Basic Facts: C mortgaged freehold estates to Y, agreeing to repay the debt in 80 half-yearly installments. The mortgage included a provision to demise the land to Y for 3000 years with a right to redeem. Y refused to allow C to redeem the mortgage before the due time.

Issue for the Court: When is a mortgage considered to be clogged or fettered?

Held: The court upheld the validity of a long-term mortgage agreement despite claims that it unduly restricted redemption.

• Greene MR held that while postponing the right to redeem is allowed, it must be reasonable. A 40-year postponement was deemed unreasonable on its face. However, if the mortgage terms are not oppressive or unconscionable, they are enforceable. The court will not interfere unless