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Birmingham Midshires Mortgage Services v Sabherwal [2000]

Facts

  • A mortgagee sought possession of a house (on unregistered land) after a mother’s sons defaulted on mortgage payments
  • The mother had contributed to the purchase price of the house

Issue

  • Was the mother’s interest overreached?

Decision

  • Yes

Reasoning

  • The decision in City of London Building Society v Flegg [1988], which provided that interests such as the mother’s would be overreached, was applicable even after the enactment of the Trusts of Land and Appointment of Trustees Act 1996.
  • The Human Rights Act 1998 had not been enacted at the time of the initial hearing, so no defence could be made on this ground to prevent overreaching taking place
  • This case distinguished between ‘family’, ‘commercial’ and ‘residual’ equitable interests for the purpose of the title deeds conveyancing process
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