header-logo header-logo

Harsh justice

23 January 2015 / Nicholas Asprey
Issue: 7637 / Categories: Features , Property
printer mail-detail

Can an equitable interest in a house take priority over a legal charge? Nicholas Asprey reports

Take a simple case in which an elderly lady living on her own wishes to raise money for her old age. She owns the house in which she lives. A friend suggests that she sells the house to him and he will rent it back to her at a discounted rent. He assures her that she can remain living there for as long as she likes. The sale price is reduced accordingly.

The purchaser applies for a mortgage loan. He instructs solicitors, who also act for the lender. Other solicitors act for the vendor. The lender is told that the house is being purchased subject to an assured shorthold tenancy (AST) of six month’s duration, but is not told about the promise made to the vendor that she can live there for as long as she likes. The draft contract makes no mention of this promise either.

Contracts are exchanged, the vendor executes a transfer in favour of the purchaser

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
The Court of Protection has ruled in Macpherson v Sunderland City Council that capacity must be presumed unless clearly rebutted. In this week's NLJ, Sam Karim KC and Sophie Hurst of Kings Chambers dissect the judgment and set out practical guidance for advisers faced with issues relating to retrospective capacity and/or assessments without an examination
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
back-to-top-scroll