A2 Dominion Homes Ltd v Prince Evans Solicitors

A2 Dominion Homes Ltd v Prince Evans Solicitors

The unilateral notice protecting the agreement for leases in the Land Registry confers priority to the leases subsequently granted pursuant to the agreement, and the distinction between the equitable interest from the agreement and the legal interest from the leases is artificial when the leases strictly conform to the agreement. Therefore, the charge does not have priority over the leases.

Parties
Claimant/respondent: A2 Dominion Homes Ltd; Defendant/appellant: Prince Evans Solicitors; Interested Party: HSBC Bank Plc
Jurisdiction
England and Wales
Judgment Date
15 July 2015
Procedural Posture
Civil / Trial of Preliminary Issue
Outcome
Preliminary issue answered in the negative; the charge does not have priority over the leases.
Legal Topics
Land Registration, Priority of Interests, Leases, Mortgagee Consent
Property Law Professional Negligence Land Registration Priority of Interests Leases Mortgagee Consent

Case Brief

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Parties

A2 Dominion Homes Ltd

Claimant/respondent

Prince Evans Solicitors

Defendant/appellant

HSBC Bank Plc

Interested Party

Procedural Posture

Civil / Trial of Preliminary Issue

Legal Issues

  1. 1 Whether the legal charge granted by Remitone Properties Ltd to HSBC Bank Plc over its freehold interest in Stephenson House, Bletchley, ranks in priority to the 33 leases granted by Remitone to the claimant by reason of the matters pleaded in paragraph 9 of the defence

Ratio Decidendi

The unilateral notice protecting the agreement for leases in the Land Registry confers priority to the leases subsequently granted pursuant to the agreement, and the distinction between the equitable interest from the agreement and the legal interest from the leases is artificial when the leases strictly conform to the agreement. Therefore, the charge does not have priority over the leases.

Court Disposition

Preliminary issue answered in the negative; the charge does not have priority over the leases.

Orders

  • HSBC Bank Plc's charge does not rank in priority to the 33 leases granted by Remitone to the claimant.