A2 Dominion Homes Ltd v Prince Evans Solicitors [2015] EWHC 2490 (Ch) (15 July 2015)

A2 Dominion Homes Ltd v Prince Evans Solicitors [2015] EWHC 2490 (Ch) (15 July 2015)

Where an agreement for leases is protected by a unilateral notice on the register, and leases are subsequently granted strictly pursuant to that agreement, the leases take priority over a subsequently registered charge, and the distinction between equitable and legal interests is artificial in this context.

Citation
[2015] EWHC 2490 (Ch)
Parties
Claimant/respondent: A2 Dominion Homes Ltd; Defendant/appellant: Prince Evans Solicitors
Jurisdiction
England and Wales
Judgment Date
15 July 2015
Procedural Posture
Professional Negligence / Trial of Preliminary Issue
Outcome
Preliminary issue answered in the negative; the charge does not have priority over the leases.
Legal Topics
Priority of Interests, Unilateral Notice, Leases and Charges, Land Registration Act 2002, Mortgagee Consent, Equitable Vs Legal Interests
Property Law Land Registration Professional Negligence Priority of Interests Unilateral Notice Leases and Charges Land Registration Act 2002 Mortgagee Consent +1 more

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Parties

A2 Dominion Homes Ltd

Claimant/respondent

Prince Evans Solicitors

Defendant/appellant

Procedural Posture

Professional Negligence / 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 ranks in priority to the 33 leases granted by Remitone to the claimant, by reason of the matters pleaded in the defence.

Ratio Decidendi

Where an agreement for leases is protected by a unilateral notice on the register, and leases are subsequently granted strictly pursuant to that agreement, the leases take priority over a subsequently registered charge, and the distinction between equitable and legal interests is artificial in this context.

Court Disposition

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

Orders

  • The legal charge granted by Remitone Properties Ltd to HSBC Bank Plc does not rank in priority to the 33 leases granted by Remitone to the claimant.