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Bristol & West Building Society v Henning [1985]

Facts

  • Mr Henning and his mistress lived in a house, unmarried, and had children
  • Mr Henning was the sole legal owner, having paid £1,900 deposit and paid the rest via a £11,000 secured mortgage loan
  • Mr Henning moved out and stopped paying the mortgage

Issue

  • Could the bank obtain possession from the mistress?

Decision

  • Yes

Reasoning

  • The mistress had no beneficial interest in the house
  • She knew and consented to the mortgaged
  • Obiter – it is enough that a contributor knows or ought to know that a mortgage was used to help acquire land for there to be imputed consent to that mortgage and therefore for it to take priority of the interest of that contributor
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