First National Bank plc v Achampong
A lender whose charge took effect against only one co-owner's share was entitled to an order for sale, because it should not have to wait indefinitely for repayment.
Facts
Mr and Mrs Achampong held their home as joint tenants. They both signed a charge in favour of the bank to secure borrowing, but Mrs Achampong's signature was obtained by undue influence, so the charge was set aside as against her and took effect only against Mr Achampong's share, as an equitable charge. Mr Achampong had left the country, and Mrs Achampong lived in the house with some of their children and grandchildren. The bank applied for an order for sale.
Legal principle
The Court of Appeal ordered sale. Blackburne J said that, under section 15 of the Trusts of Land and Appointment of Trustees Act 1996, the court must weigh the relevant factors, and that the interests of the bank as a secured creditor were a powerful consideration. The purpose of the trust, providing a matrimonial home, had ended when Mr Achampong left, and the children who lived there were now adults. Unless sale was ordered, the bank would be kept out of its money indefinitely, with no return.
Related cases on co-ownership and trusts of land
- Bank of Ireland Home Mortgages Ltd v Bell [2001] 2 FLR 809
- Barca v Mears [2004] EWHC 2170 (Ch)
- Bull v Bull [1955] 1 QB 234
- Burgess v Rawnsley [1975] Ch 429
- Re Citro (A Bankrupt) [1991] Ch 142
- Re Draper's Conveyance [1969] 1 Ch 486
- Goodman v Gallant [1986] Fam 106
- Harris v Goddard [1983] 1 WLR 1203
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