Explanatory note

This Order prescribes three types of equitable interest in land for the purposes of section 6A(2) of the Building Societies Act 1986. A loan secured by a mortgage of any of these types of equitable interest to a building society or its subsidiary undertaking is secured on land for the purposes of the Act.

The first type of equitable interest in land is a leaseholder’s right — for example in certain types of shared ownership scheme — to buy the freehold or a greater leasehold interest. The second type is an easement, profit or similar right which belongs with land. The third type is an interest arising under a contract for the development, primarily for residential purposes, of land which includes a right for the developer to call for the legal estate to be transferred to him or to a third party.