Subject :  Difference between a "mortgage" and a "lease"?
Question :  What is the difference between a "mortgage" and a "lease" Please explain

Answer by Menon and Singh, Advocates and Solicitors :  Mortgage and lease have been exclusively dealt with in the Transfer of Property Act. As per Section 58 of the said Act, mortgage is the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability. Section 105 TOPA states that a lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. Difference- 1. In mortgage, the interest in property is transferred for securing payment of money whereas in lease, interest in property is transferred for enjoyment of property in exchange of some consideration. 2. Almost all types of mortgage requires registration of property but lease requires registration only if the lease period exceeds 11 months. 3. Mortgage deed requires attestation by 2 witness but lease does not require the same. 4. In mortgage the consideration is known as mortgage money whereas in lease, the consideration is known as premium or rent.