Citation(s) [2001] Ch 743 | Court High Court of Justice | |
Similar Re Citro, White v White, Stack v Dowden, Lloyds Bank plc v Rosset | ||
Mortgage Corporation v Shaire [2001] Ch 743 is an English land law case relating to the Trusts of Land and Appointment of Trustees Act 1996.
Contents
Facts
Mr Marvin Fox and Marsha Shaire lived at 74 Winchmore Hill Road, London N14 as joint tenants. Mr Fox died in 1992, and it transpired he had forged Mrs Shaire’s signature, and mortgaged the property to Mortgage Corporation. It was accepted their charge was valid against his share. However, payments were not met and the bank applied for a possession order under TLATA 1996 section 14. Mrs Shaire argued that under section 15 her interest should prevail over those of the creditors.
Judgment
Neuberger J held that Parliament intended with TOLATA 1996 s 15 to replace trusts for sale with trusts of land, and thus give the court more discretion and 'to tip the balance somewhat more in favour of families and against banks and other charges'. The interest of the chargee was just one factor, and there was no suggestion that it should be given more weight. It was in the court’s discretion. In the circumstances, the court would not make an order until the parties had had an opportunity to consider the consequences of the court’s conclusions on the law. Old cases should be treated with caution.
Instead, the claimant's interest should be converted to a loan for Mrs Shaire to pay off over time. If she could not meet the requirements of the loan, then the court would order a sale, but only after consideration had been given to properties available to Mrs Shaire with the money that would be realised upon sale of the house. The court also held that Mrs Shaire would never have intended for Mr Fox to have a 50% interest in the property, and therefore set his share at 25%.