Source: All England Reporter
Publisher Citation: [2015] All ER (D) 151 (Apr)
Neutral Citation: [2015] UKPC 16
Court: Privy Council

Lady Hale, Lord Sumption, Lord Carnwath, Lord Hughes and Lord Hodge

Representation Michael Hylton QC, Kevin Powell and Shanique Scott (instructed by Sheridans) for JMMB.
  Peter Knox QC and Dr Lloyd Barnett (instructed by MA Law (Solicitors) LLP) for the REB.
Judgment Dates: 20 April 2015


Mortgage - Charge - Priority - Respondent Real Estate Board bringing proceedings seeking declaration that its charge ranking in priority to appellant bank's charge - Appellant seeking declaration that respondent's charge being void against it because particulars of charge not being registered at Companies Office - Judge finding respondent's charge being valid and ranking in priority to appellant's mortgage - Appellant's appeal being dismissed - Whether charge in favour of respondent only being valid if registered - Whether, and to what extent, charge in favour of regulated financial institution ranking pari passu with respondent's charge.

The Case

Mortgage Charge. The appeal was concerned with the interpretation of s31 of the Real Estate (Dealers and Developers) Act 1987 (REDDA). The Privy Council held that a charge which a vendor created in favour of the respondent Real Estate Board, under s31(4) of REDDA, was valid without its registration in the Companies Register. Further, s31(5) of REDDA conferred the ranking on the charge and not on the sums secured by a more general charge which the authorised financial institution could prove to have been advanced to fund such construction and works.

Practice Areas

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