The applicant appealed an order for the removal of a land charge. As tenant of a flat, he had fallen into dispute with the management company. Proceedings were under way for the lease to be forfeited, and in the meantime his lender obtained a possession order. He intended to claim damages for failure to repair, and he registered a land charge to protect that impending action. The landlord was now in liquidation.
Held: The use of the land charge was wholly inappropriate. The landlord being in liquidation, no charging order would now be possible. He was an unsecured creditor and this claim must proceed by way of proof in the liquidation. The charging order procedure is not available to a party who has not yet established his claim. Leave to appeal was refused.
Judges:
Lord Justice Mccowan, Lord Justice Millett
Citations:
[1997] EWCA Civ 835
Statutes:
Jurisdiction:
England and Wales
Landlord and Tenant, Land, Insolvency
Updated: 05 November 2022; Ref: scu.141231