Hughmans Solicitors v Central Stream Services Ltd (in Liquidation) and another [2012] EWHC 1222 (Ch), [2012] All ER (D) 102 (May)
The basic rule as to priority between competing equitable interests in relation to registered land was laid down in unambiguous terms by s 28 of the Land Registration Act 2002 (LRA 2002). Priority was determined by the order in which those equitable interests were created. Priority for a later interest over an earlier interest was conferred by registration if, but only if, the later interest was a disposition made for valuable consideration. If it was, then the earlier interest lost its priority if not protected on the register. If it was not, then the priority of the two competing equitable interests continued to be governed by the order of their creation.
It would be wrong to read s 3(4) of the Charging Orders Act 1979 (COA 1979) as containing within it an unspoken presumption or deeming provision to the effect that a charge imposed by a charging order should, for the purposes of the LRA 2002 or otherwise, be treated as having been created for valuable consideration.
