Charges on registered land
21.—(1) In paragraph 1 of Part I of Schedule 7 to the 1970 Act (under which a deed of charge by a registered owner must not be a purported conveyance or demise by way of mortgage), the words from “not being” to “by way of mortgage” shall cease to have effect.
(2) That paragraph shall be renumbered as paragraph 1(1), and the following sub-paragraph shall be inserted at the end of it:
“(2) A document purporting to transfer or demise (whether or not subject to defeasance) a freehold or leasehold estate in registered land by way of mortgage shall so far only as it relates to such land be deemed to be a deed of charge of, respectively, that estate or the estate out of which the leasehold estate is purported to be demised, and shall not operate to vest any freehold or leasehold estate in the registered land in the person in whose favour the document is executed.”.