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City of London Building Society v Flegg [1988]


  • Three people contributed to the purchase price of an estate
  • Two of these people mortgaged the house
  • The mortgage was defaulted upon, and the bank sought possession


  • Was Mrs Flegg, the third person, who was not involved with the mortgage, entitled to prevent the bank’s order for possession by virtue of her actual occupation under Schedule 3, paragraph 2 of the Land Registration Act 2002?


  • No


  • As the mortgage had been provided by two people, two trustees were present and Mrs Flegg’s interest was overreached upon the default of the mortgage payments
  • Mrs Fleg would have personal claims against the two mortgagors
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