Priority in Sale and Leaseback – Radcliffe Chambers

Posted March 19th, 2015 in contracts, equity, leases, mortgages, news by sally

‘Scott v. Southern Pacific Mortgages Ltd, in which the Supreme Court gave judgment on 22nd October 2014, has finally determined, in favour of the mortgagees, the question of priority between home owners, who had sold their homes under sale and leaseback schemes after getting into financial difficulties in return for the grant of a tenancy from the purchaser, and the mortgagees who provided the finances for the purchases. In order for the home owners’ unregistered interests to override a registered disposition under the Land Registration Act 2002, the interest had to be a proprietary interest, but prior to acquiring the legal estate a purchaser could not grant equitable rights of a proprietary character, as opposed to personal rights.’

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Radcliffe Chambers, 10th February 2015