Victorian Consolidated Legislation

Property Law Act 1958 - SECT 88

Effect of conveyance on sale by mortgagee by sub-demise

88. Effect of conveyance on sale by mortgagee by sub-demise

If under a mortgage deed by sub-demise a leasehold nominal reversion
consisting of a term of years absolute or any part of such term is held in
trust for the mortgagee or would on a sale be held in trust for a purchaser
from him then on a sale by the mortgagee the conveyance (made after the
thirty-first day of December One thousand nine hundred and eighteen) shall
operate to convey not only the mortgage term but also (unless expressly
excepted) the aforesaid nominal reversion, and the mortgage term and any
subsequent mortgage term shall subject to any express provision to the
contrary contained in the conveyance merge in the leasehold reversion.