Anfield (UK) Ltd v Bank of Scotland plc [2010] EWHC 2374 (Ch), [2010] All ER (D) (Sept)
Chancery Division, Proudman J, 24 Sept 2010
A lender who stipulates for a legal charge but who in fact obtains only an equitable charge due to his failure to register under the Land Registration Acts will, subject to fulfilment of all other relevant requirements, be entitled to be subrogated to an earlier legal charge that was discharged with his advance.
Richard Lander (instructed by Chandler Harris) for the claimant. Charlotte Eborall (instructed by Optima Legal Services Limited) for the first defendant.
The proceedings arose out of loans to the second defendant, a bankrupt, who was the registered proprietor of property in London (the property). The claimant was A Ltd and the first defendant was Bank of Scotland plc (the bank).
The bank advanced money to the second defendant to redeem a charge of 30 June 2000 in respect of the Halifax building society (the Halifax charge) and in September 2006 received in return an executed charge (the 2006 charge) capable of being registered as a legal charge.
The bank failed,
