D was allowed to have a lifelong rent-free lease by X. X then sold the house in which D lived to P, “subject to” the lifelong lease. P then tried to have D evicted. CA refused their claim, holding that purchasers with notice take property as constructive trustees for their person subject to whose right the property is sold.
Lord Denning MR: “In these circumstances, this court will impose on the plaintiffs a constructive trust for her benefit: for the simple reason that it would be utterly inequitable for the plaintiffs to turn the defendant out contrary to the stipulation subject to which they took the premises.”
