Section 61(7)

Where the interest in land, in respect of which any compensation falls to be assessed in accordance with subsection (6) above, is subject to a mortgage— the compensation shall be assessed as if the interest were not subject to the mortgage; a claim for the compensation may be made by any mortgagee of the interest, but without prejudice to the making of a claim by the person entitled to the interest; no such compensation shall be payable in respect of the interest of the mortgagee (as distinct from the interest which is subject to the mortgage); any such compensation which is payable in respect of the interest which is subject to the mortgage shall be paid to the mortgagee or, if there is more than one mortgagee, to the first mortgagee, and shall in either case be applied by him as if it were proceeds of sale.

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Source: legislation.gov.uk · retrieved 2026-07-30