Williams & Anor v Alter Domus Trustees (UK) Ltd & Ors (Rev1) [2023] EWHC 1820 (Ch) (18 July 2023)

Williams & Anor v Alter Domus Trustees (UK) Ltd & Ors (Rev1) [2023] EWHC 1820 (Ch) (18 July 2023)

The equitable liens of Category A Purchasers are not excluded or postponed by the terms of the AFLs; they attach only to the part of the property specified in each contract, not the whole property, and take priority over the charge of Alter Domus only to that extent. The distribution of sale proceeds must reflect...

Source-derived case information.

Citation
[2023] EWHC 1820 (Ch)
Parties
Applicant: Steven John Williams; Applicant: Philip Lewis Armstrong; First Respondent: Alter Domus Trustees (UK) Limited; Second Respondent: The Purchasers described in Schedule 2 to the Application; Third Respondent: ION Insurance Group S. A.
Jurisdiction
England and Wales
Judgment Date
18 July 2023
Procedural Posture
Insolvency Application (distribution of Sale Proceeds in Administration) / Judgment After Resumed Hearing on Distribution of Sale Proceeds
Outcome
Application granted in part; directions given for distribution of sale proceeds in accordance with the judgment.
Legal Topics
Equitable Liens, Priority of Security Interests, Off Plan Property Sales, Deposit Protection, Land Registration
Insolvency Property Law Equity Equitable Liens Priority of Security Interests Off Plan Property Sales Deposit Protection Land Registration

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Parties

Steven John Williams

Applicant

Philip Lewis Armstrong

Applicant

Alter Domus Trustees (UK) Limited

First Respondent

The Purchasers described in Schedule 2 to the Application

Second Respondent

ION Insurance Group S. A.

Third Respondent

Procedural Posture

Insolvency Application (distribution of Sale Proceeds in Administration) / Judgment After Resumed Hearing on Distribution of Sale Proceeds

Legal Issues

  1. 1 Whether binding agreements for sale existed between the Company and Category A Purchasers
  2. 2 Whether the AFLs impliedly excluded or postponed the equitable lien in favour of Category A Purchasers
  3. 3 Whether the equitable liens attach to the entire freehold or only to the subject matter of each contract

Ratio Decidendi

The equitable liens of Category A Purchasers are not excluded or postponed by the terms of the AFLs; they attach only to the part of the property specified in each contract, not the whole property, and take priority over the charge of Alter Domus only to that extent. The distribution of sale proceeds must reflect this, with Category A Purchasers sharing in the net proceeds attributable to their contracted apartments, and the balance payable to Alter Domus.

Court Disposition

Application granted in part; directions given for distribution of sale proceeds in accordance with the judgment.

Orders

  • Category A Purchasers' equitable liens attach only to the subject matter of their contracts and take priority over the charge to that extent.
  • Distribution of net sale proceeds to be apportioned accordingly, with the balance to Alter Domus.