The mortgagor agreed to buy a shop with living accommodation above. She let the flat to her sister before completion, and by the date of the mortgage, the sister was in possession. After default, the lender sought possession under the mortgage, but was only granted possession subject to the tenancy. The mortgage was granted the day after the completion of the purchase.
Held: With no evidence to the contrary, there was an interval between the conveyance and the mortgage during which time the tenant’s tenancy by estoppel became a tenancy at law with priority over the mortgage. The estoppel was fed by the acquisition of the legal estate.
Jenkins LJ, Lord Evershed MR
 Ch 95,  2 All ER 893,  2 TLR 962
England and Wales
Distinguished – Coventry Permanent Economic Building Society v Jones ChD 1951
The contracting purchaser of a property agreed, prior to completion, to let the ground floor of the property to two tenants. She subsequently borrowed a sum of money from the plaintiffs to enable her to complete the purchase. On completion, she . .
Cited – Scott v Southern Pacific Mortgages Ltd and Others SC 22-Oct-2014
The appellant challenged a sale and rent back transaction. He said that the proposed purchaser had misrepresented the transaction to them. The Court was asked s whether the home owners had interests whose priority was protected by virtue of section . .
These lists may be incomplete.
Updated: 01 June 2021; Ref: scu.259705