Land Acquisition (Just Terms Compensation) Act 1991 No 22
65 Effect of acquisition of mortgage interest
(a) land is compulsorily acquired under this Act,
(b) the land is subject to one or more
then, as a general rule, the compensation to which the owner of the land
will be entitled in respect of the acquisition is to be determined as if the
land had not been subject to the mortgage.
(2) However, if compensation is payable under this Part to a mortgagee
in respect of a mortgage interest, the compensation payable to the owner of
the land acquired is to be reduced by so much of the compensation as is
payable to the mortgagee.