• Send us a message

    Fill in our form and we'll get back to you as soon as possible

    Please enter name
    Please enter your telephone number
    Please enter your email address
    Please let us know which of offices would most convenient for you?
    Please enter the details of your enquiry
    Please enter the verification code
    Send us a message
  • Services for you
  • Services for business

Incorrect Documentation Fails to Cancel Charge

Just because a document is not properly executed does not mean that all rights are necessarily lost, as a recent case in the Supreme Court illustrates.

It involved a bank which had a mortgage over a family home. The family wished to pay off debts and decided to sell the house and move to a smaller property, releasing funds to clear their indebtedness.

The bank agreed to 'transfer the mortgage', but the paperwork to do that was not executed properly.

The situation became an issue when the family decided to give the new home to a daughter, who sought the removal of the bank's charge from the register at the Land Registry.

The bank conceded that the purported documentation was invalidly executed, and was therefore void, but was successful in its argument that it had a right to retain its charge under the law of equity, as to remove it would 'unjustly enrich' the daughter.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.