11(1)Where any interest in land is subject to a mortgage or, in Scotland, to a heritable security—U.K.
(a)any compensation payable under the preceding provisions of this Schedule in respect of the diminution in the value of the interest shall be assessed as if the interest were not subject to the mortgage or heritable security;
(b)a claim for any such compensation may be made by any mortgagee of the interest or, in Scotland, by any creditor in a heritable security of the interest, but without prejudice to the making of a claim by the person entitled to the interest;
(c)a mortgagee or, in Scotland, a creditor in a heritable security shall not be entitled to claim compensation under the said provisions in respect of his interest as such; and
(d)the compensation payable in respect of the interest subject to the mortgage or heritable security may be paid to such of the claimants as the Secretary of State thinks proper, and shall be applied by that claimant in such manner as the parties interested may agree, or, in default of such agreement, as may be determined by arbitration.
(2)In this paragraph—
“mortgage” includes an equitable charge and any other encumbrance, and includes a sub-mortgage, and the expression “mortgagee” shall be construed accordingly;
“heritable security” means a heritable security within the meaning of the M1Conveyancing (Scotland) Act 1924, exclusive of a security by way of ground annual and a real burden ad factum praestandum, but inclusive of a security constituted by ex facie absolute disposition.
Marginal Citations