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What is an overriding interest?

Rights which are not discoverable by searching the register, but remain binding on a purchaser.


Strand Securities v Caswell

"It is vital to the working of the Land Registration system that notice of something which is not on the register should not affect a transferee.. unless it is an overriding interest"


Where can interests that override be found?

LRA 2002 Schedule 1 and 3


Rights not capable of overriding?

-Right of occupation in the matrimonial home - National Provincial Bank v Ainsworth
-Future leases
-Interests under a settlement


Hodgson v Marks

Was there actual occupation?
-Vendor and occupier in occupation at the same time


Chhokar v Chhokar and Parmer

Was there actual occupation?
- Temporary absence of wife in occupation


Williams and Glyns Bank v Boland

Facts: -Wife contributed to matiromonial home and mortgage payments
- House was in the legal name of husband
-When defaulted on payments, the bank sought repossession of house
-Were wives interest overriding

Judgment: It was

L.P: - Wives showed occupation so that was good enough

-Lord Scarman: If the ruling had been for the bank would have weakened/ destroyed wives position in the matrimonial home


Abbey National Building Society v Cann

Facts: -D's mother had contributed towards the purchase price of the house, unknown to B.S
-25 mins before completion D's mother moved into the address
-D defaulted on payments and the bank sought to repossess but mother claimed overriding interest

Judgment: For B.S

L.P: -Occupiers interest had to arise before the creation of legal charge if it is to override it
-Moving in 25 minutes beforehand it not enough for actual occupation as the process of buying a house with a mortgage is seen as one indivisible transaction
-Laying carpets is a preparatory act, not actual occupation


Lloyds Bank v Rosset

Facts: D was married to the sole legal owner of the house and helped with some building work and decorating work but made no finacinal contribution
- D's Husband defaulted on payments and the bank sought to repossess
-D claimed overriding interest

Judgment: No interest

L.P: -No financial contributions, only physical ones so no beneficial interest