Source: All England Reporter
Publisher Citation: [2016] All ER (D) 21 (Nov)
Neutral Citation: [2016] EWHC 2656 (Ch)
Court: Chancery Division

Master Matthews

Representation Mark Warwick QC (instructed under the Direct Access Scheme) for the claimant.
  Timothy Polli (instructed by Dentons UKMEA LLP) for the bank.
Judgment Dates: 31 October 2016


Bank - Subrogation - Unpaid vendor's lien - Sale of claimant's parent's family home - Family home subject to charges in favour of bank - Bank agreeing to release of charges and to purchase by parents of second property ( new property) on basis charge to be granted over new property - New property registered in name of claimant - Claimant contending charge on new property void as invalidly executed - Bank counterclaiming for declaration entitled to be subrogated to unpaid vendor's lien over new property and for order for sale - Court of Appeal, Civil Division, holding bank entitled to be subrogated to equitable charge by way of unpaid vendor's lien over new property - Supreme Court dismissing claimant's appeal - Bank's application for order of sale outstanding - Legal nature of rights to which bank entitled - Applicable legal regime in respect of bank's application for order of sale in respect of new property - Whether such order should be made - , - , - CPR 73.10C.

The Case

Bank Subrogation. The Chancery Division held, further to earlier proceedings in which the defendant bank had successfully counterclaimed for a declaration that it was entitled to be subrogated to an unpaid vendor's lien over the claimant's family home, that the bank was entitled to an order for sale of the property. The court held, among other things, that an unpaid vendor's lien was an equitable charge and that the power to realise equitable charges contained in of the Law of Property Act 1925 applied.

Practice Areas

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