The court was asked whether a statutory charge on the property under the General Rate Act wou ld have priority over a legal mortgage on the property existing when the charge came into being. It was argued that the charge would be only on the mortgagor-owner’s interest in the property i.e. on the equity of redemption.
Held: The argument failed. ‘charge on the land’ imposed for an unpaid surcharge was not confined to a charge on the owner’s interest in the premises when the charge arose, but extended to a charge on all the estates and interests in the premises existing when the charge arose. The rating authority’s charge would have priority over the bank’s interest as a mortgagee.
There cannot in general at least be two persons in different capacities in possession at the same time.
Citations:
[1981] 1 WLR 677, [1981] 2 All ER 555
Jurisdiction:
England and Wales
Cited by:
Cited – Brighton and Hove City Council v Audus ChD 26-Feb-2009
The claimant was the proprietor of a fourth legal charge on a title. It sought a declaration that a second charge in favour of the defendant was void as a clog on the proprietor’s equity of redemption. An advance secured by a first charge, also in . .
Lists of cited by and citing cases may be incomplete.
Land, Rating
Updated: 07 May 2022; Ref: scu.304592