Facts
- Mrs Bustard was sectioned under section 3 of the Mental Health Act 1983, therefore could not live continuously at her house, of which she was the registered proprietor
- Mrs Bustard visited her house weekly, under supervision
- A third party fraudulently had Mrs Bustard’s house transferred to him, mortgaged it and default on payments
- The bank sought repossession of the house
Issue
- Was Mrs Bustard entitled to override the bank’s interest by virtue of her actual occupation as defined by paragraph 2, Schedule 3 of the Land Registration Act 2002?
Decision
- Yes, bank’s claim failed
Reasoning
- The Court of Appeal refused to reverse the trial judge’s finding that Mrs Bustard was in actual occupation under the 2002 Act, as he had not incorrectly interpreted the legislation
- The trial judge (Judge Walton in the County Court) found actual occupation was a justified finding as a result of several factors including Mrs Bustard’s regular visits; the third party’s knowledge of her mental incapacity and her intention of remain in occupation of her house
