Priorities

Question 1

Barclays Bank v Zaroovabli

Answer 1

BB lent money to Z secured on Z’s property. Agreement contained clause excluding Z’s power to let. Two months later, Z lets property to P for term not exceeding 21 years (under LRA 1925, this did not need to be registered and so was an overriding interest under old s 70(1)(k) LRA 1925). BB does not register charge until 5 years later. Lease takes priority over BB’s charge.

Question 2

Halifax v Curry Popeck

Answer 2

mortgage fraud: mortgagee H had unprotected equity by estoppel, land then transferred fraudulently and new equitable charge arose in favour of third mortgagee; but since the transfer was not for value it did not constitute a registrable disposition, s 29 LRA not applicable, and s 28 decided the issue in favour of the earlier interest.

Question 3

Abbey National v Cann

Answer 3

Acquisition mortgage rule: overriding interests bind if they are in existence at the date of registration of the third-party interest. However, those of persons in actual occupation will bind only if they are in existence at the date of completion of the third-party interest:

Question 4

William&Glynn’s Bank v Boland

Answer 4

H was sole legal owner but W had equitable interest in home; H later mortgaged home to W&G, defaulted, bank wanted possession, but held that bound by W’s overriding interest under old LRA 1925 s 70(1)(g) (precursor to Schedule 3 para 2 LRA 2002) as she had an interest and was in AO:

Question 5

National Provincial Bank v Ainsworth

Answer 5

claimants were undoubtedly in actual occupation of the land, but neither was found to have an interest in the land which their occupation could protect.