Various Mortgagors v Various Mortgagees & Ors

Various Mortgagors v Various Mortgagees & Ors

The mortgagees' rights under their charges have priority over any equitable rights acquired by the occupiers as a result of NEPB's representations. The sale and leaseback transaction, including contract, completion, and charge, is indivisible, and no proprietary interest arises prior to the mortgagee's charge. The interests claimed by the occupiers do not qualify as overriding interests under Schedule 3 of the Land Registration Act 2002. Short leases granted before registration do not obtain priority over the mortgagee's charge under section 29(4). Notice and knowledge are irrelevant to priority except as provided by statute.

Parties
Claimant: Various Mortgagors (as set out in Appendix 1); Defendant: Various Mortgagees; Defendant: Various Occupiers (as set out in Appendix 1)
Jurisdiction
England and Wales
Judgment Date
19 November 2010
Procedural Posture
Civil / Determination of Preliminary Issues in Test Cases
Outcome
Preliminary issues answered in favour of the mortgagees; occupiers' interests do not have priority.
Legal Topics
Priority of Interests, Overriding Interests, Sale and Leaseback, Mortgage Fraud, Actual Occupation, Proprietary Estoppel
Property Law Land Registration Priority of Interests Overriding Interests Sale and Leaseback Mortgage Fraud Actual Occupation Proprietary Estoppel

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Parties

Various Mortgagors (as set out in Appendix 1)

Claimant

Various Mortgagees

Defendant

Various Occupiers (as set out in Appendix 1)

Defendant

Procedural Posture

Civil / Determination of Preliminary Issues in Test Cases

Legal Issues

  1. 1 Are the interests alleged by the Defendants capable of being overriding interests under Schedule 3 of the Land Registration Act 2002?
  2. 2 Can any tenancy agreements alleged by the Defendants obtain priority over the Claimants' charges under section 29(4) of the Land Registration Act 2002?
  3. 3 Can the Claimants' priority be adversely affected by notice of promises or circumstances by virtue of their agent's knowledge?

Ratio Decidendi

The mortgagees' rights under their charges have priority over any equitable rights acquired by the occupiers as a result of NEPB's representations. The sale and leaseback transaction, including contract, completion, and charge, is indivisible, and no proprietary interest arises prior to the mortgagee's charge. The interests claimed by the occupiers do not qualify as overriding interests under Schedule 3 of the Land Registration Act 2002. Short leases granted before registration do not obtain priority over the mortgagee's charge under section 29(4). Notice and knowledge are irrelevant to priority except as provided by statute.

Court Disposition

Preliminary issues answered in favour of the mortgagees; occupiers' interests do not have priority.

Orders

  • Preliminary issue 1: No
  • Preliminary issue 2: No