Link Lending Ltd v Bustard
A woman living in a psychiatric hospital was still in actual occupation of her home, because she intended to return and her belongings remained there.
Facts
Mrs Bustard suffered from a mental illness. She was persuaded by a fraudster to transfer her house to another woman, who mortgaged it to Link Lending. Mrs Bustard had been admitted to a residential psychiatric unit, but she continued to visit the house regularly, her furniture and belongings remained there, and she wanted to return. When the mortgage was not paid, the lender sought possession, and Mrs Bustard claimed that her right to have the transfer set aside was an overriding interest.
Legal principle
The Court of Appeal held that Mrs Bustard was in actual occupation of the house, under Schedule 3, paragraph 2 of the Land Registration Act 2002, and that her interest bound the lender. Mummery LJ said that actual occupation is a question of fact, depending on the degree of permanence and continuity of presence of the person concerned, the intentions and wishes of that person, the length of absence and the reasons for it. Mrs Bustard's absence was involuntary, she visited regularly and she intended to return.
Related cases on registered and unregistered land
- Abbey National Building Society v Cann [1991] 1 AC 56
- Baxter v Mannion [2011] EWCA Civ 120, [2011] 1 WLR 1594
- Chhokar v Chhokar [1984] FLR 313
- City of London Building Society v Flegg [1988] AC 54
- Ferrishurst Ltd v Wallcite Ltd [1999] Ch 355
- Hodgson v Marks [1971] Ch 892
- Kingsnorth Finance Co Ltd v Tizard [1986] 1 WLR 783
- Malory Enterprises Ltd v Cheshire Homes (UK) Ltd [2002] EWCA Civ 151, [2002] Ch 216
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