LRA Where a party obtains public funding of litigation as to the amount secured by a mortgage or charge and that results in a reduction of the amount claimed by the mortgagee, the Legal Services Commission is entitled to a charge over the funded party’s beneficial interest in the property under section 10(7) of the Access to Justice Act 1999 at least to the extent to which the value of the claimant’s beneficial interest has been enhanced by the outcome of the litigation.
Also, where a settlement offer of damages, over which the Legal Services Commission would have an undisputed statutory charge, has been rejected, and in place of damages it is agreed that an undisputed liability secured on the property should be released, then the Legal Services Commission will also have a statutory charge over the property or the funded party’s beneficial interest in it at least to the extent to which the value of the equity of redemption or the funded party’s beneficial interest has been enhanced by the settlement.
 EWLandRA 2010 – 1144
England and Wales
Updated: 30 December 2021; Ref: scu.546250