UCB Group Ltd v Hedworth [2002] EWCA Civ 708 (24 May 2002)

UCB Group Ltd v Hedworth [2002] EWCA Civ 708 (24 May 2002)

A beneficiary under a bare trust of registered land who receives payments under a tenancy by estoppel granted by herself to the registered proprietor is not in receipt of 'rents' of the land within the meaning of section 70(1)(g) of the Land Registration Act 1925 and is not entitled to an overriding interest; such payments do not issue out of the land but out of the beneficial interest, which is not 'land' for these purposes.

Citation
[2002] EWCA Civ 708
Parties
Appellant: UCB Group Ltd; Respondent: Gillian Hedworth
Jurisdiction
England and Wales
Judgment Date
24 May 2002
Procedural Posture
Appeal / Appeal From Summary Judgment Refusal in High Court (chancery Division)
Outcome
Appeal allowed
Legal Topics
Overriding Interests, Beneficial Interests Under Trusts, Tenancy by Estoppel, Land Registration Act 1925 S.70(1)(g)
Property Law Land Registration Overriding Interests Beneficial Interests Under Trusts Tenancy by Estoppel Land Registration Act 1925 S.70(1)(g)

Case Brief

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Parties

UCB Group Ltd

Appellant

Gillian Hedworth

Respondent

Procedural Posture

Appeal / Appeal From Summary Judgment Refusal in High Court (chancery Division)

Legal Issues

  1. 1 Whether a beneficiary under a bare trust of registered land, in receipt of periodical payments from the registered proprietor under a tenancy by estoppel, is in receipt of 'rents' within the meaning of section 70(1)(g) of the Land Registration Act 1925 and thus entitled to an overriding interest.

Ratio Decidendi

A beneficiary under a bare trust of registered land who receives payments under a tenancy by estoppel granted by herself to the registered proprietor is not in receipt of 'rents' of the land within the meaning of section 70(1)(g) of the Land Registration Act 1925 and is not entitled to an overriding interest; such payments do not issue out of the land but out of the beneficial interest, which is not 'land' for these purposes.

Court Disposition

Appeal allowed

Orders

  • Set aside the judgment of the Deputy Judge
  • Enter summary judgment for UCB Group Ltd for vacation of the caution