Suspending belief – Nearly Legal

Posted December 15th, 2014 in appeals, equity, land registration, landlord & tenant, mortgages, news, Supreme Court by tracey

‘We have dealt with the basic facts in Scott v Southern Pacific Mortgages Ltd [2014] UKSC 52 when considering its previous incarnations (Cooke v Mortgage Business [2012] EWCA Civ 17 and Re North East Property Buyers Ltd [2010] EWHC 2991 (Ch)). In summary, the basic question for the Supreme Court was this: where a seller has agreed, prior to the contract of sale, that the buyer will grant the seller a tenancy after the sale, does the seller have that right so as not only to bind the buyer but also the buyer’s lender? I think, when framed as a question like that, the answer seems obvious. Call me a weak-kneed liberal, but all the equity (colloquially speaking) is in favour of the seller. They have entered in to the transaction on that basis and would not have entered in to the transaction otherwise. We all make bad deals which the law doesn’t get us out of, but the equity isn’t really in our favour: why should the law get us out of a bad deal?’

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Nearly Legal, 14th December 2014