equity of redemption

The equity of redemption is the equitable right granted to mortgagors entitling them to have the legal title to the property which is the subject of a charge or mortgage re-conveyed to them after sums secured by the charge has been repaid. The sums include the principal sum borrowed, interest in the principal sum, and the costs of the mortgagee.

The equity of redemption operates in corporate law and subsists when the payments are late.