Overriding interests Flashcards
What is an overriding interest?
Rights which are not discoverable by searching the register, but remain binding on a purchaser.
Strand Securities v Caswell
“It is vital to the working of the Land Registration system that notice of something which is not on the register should not affect a transferee.. unless it is an overriding interest”
Where can interests that override be found?
LRA 2002 Schedule 1 and 3
Rights not capable of overriding?
- Right of occupation in the matrimonial home - National Provincial Bank v Ainsworth
- Future leases
- Interests under a settlement
Hodgson v Marks
Was there actual occupation?
-Vendor and occupier in occupation at the same time
Chhokar v Chhokar and Parmer
Was there actual occupation?
- Temporary absence of wife in occupation
Williams and Glyns Bank v Boland
Facts: -Wife contributed to matiromonial home and mortgage payments
- House was in the legal name of husband
- When defaulted on payments, the bank sought repossession of house
- Were wives interest overriding
Judgment: It was
L.P: - Wives showed occupation so that was good enough
-Lord Scarman: If the ruling had been for the bank would have weakened/ destroyed wives position in the matrimonial home
Abbey National Building Society v Cann
Facts: -D’s mother had contributed towards the purchase price of the house, unknown to B.S
- 25 mins before completion D’s mother moved into the address
- D defaulted on payments and the bank sought to repossess but mother claimed overriding interest
Judgment: For B.S
L.P: -Occupiers interest had to arise before the creation of legal charge if it is to override it
- Moving in 25 minutes beforehand it not enough for actual occupation as the process of buying a house with a mortgage is seen as one indivisible transaction
- Laying carpets is a preparatory act, not actual occupation
Lloyds Bank v Rosset
Facts: D was married to the sole legal owner of the house and helped with some building work and decorating work but made no finacinal contribution
- D’s Husband defaulted on payments and the bank sought to repossess
- D claimed overriding interest
Judgment: No interest
L.P: -No financial contributions, only physical ones so no beneficial interest
