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Every tenant of real property may mortgage his lease or term in the demised premises, together with all buildings, fixtures and machinery thereon and appurtenant thereto belonging to the tenant, except as otherwise limited or prohibited by the terms of his lease.
Any such mortgaging of the tenant's interest and title shall have the same effect with respect to lien, notice, evidence and priority of payment as is provided by law in the case of the mortgaging of a freehold interest and title.
Any such mortgage shall be acknowledged and placed on record in the proper county, together with the lease or a memorandum thereof complying with the provisions of the act of June 2, 1959 (P.L. 454), 1 as in the case of mortgages on freehold interests. If the lease or such a memorandum thereof shall have been recorded in the office of the recorder of deeds of the proper county before the time of the recording of the mortgage in lieu of being recorded together with the mortgage, such recording of the lease or memorandum shall be deemed sufficient compliance with this section if full and distinct reference is made in said mortgage to (a) the book and page where the lease or such memorandum is recorded, or (b) the date of recording and instrument number or other identifying number with respect to the recording of such lease or memorandum.
Any such mortgage of a tenant's interest and title may be enforced in the same manner as mortgages on freehold interests.
No such mortgage shall in any wise interfere with the landlord's rights, priority or remedies for rent.
As used in this section, the word “tenant” shall include a subtenant holding under a sublease from a tenant under a prime lease from the owner or from a subtenant under a sublease provided that the prime lease and the intervening subleases, if any, or memoranda thereof complying with the provisions of the act of June 2, 1959 (P.L. 454) shall have been recorded in the office of the recorder of deeds of the proper county at or before the time of recording of the sublease to such subtenant. As applied to a mortgage made by a subtenant, the word “lease” wherever used in this section shall mean sublease.
Cite this article: FindLaw.com - Pennsylvania Statutes Title 68 P.S. Real and Personal Property § 250.204. Mortgaging of leaseholds - last updated January 01, 2019 | https://codes.findlaw.com/pa/title-68-ps-real-and-personal-property/pa-st-sect-68-250-204/
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