Multiservice Bookinding Ltd v Marden 
- A mortgage over business premises was granted by the claimants to the defendant in return for a £36,000 loan
- The agreement linked the mortgage’s interest rate with the exchange rate between the pound sterling and the swiss franc
- A dramatic change in the exchange rate caused a significant increase in the rate of interest charged
- Could the interest rate link term be avoided as is destroyed the equity of redemption possessed by the claimants?
- For a term to destroy the mortgagor’s equity of redemption, it would have to be unconscionable or contrary to public policy
- It was not enough that the term was merely unreasonable as both parties were of equal bargaining power
Posted in Land Law Revision Notes.
This page was last updated on 28th April 2015