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Skipton BS v Clayton [1993] 66 P & CR 223

By Oxbridge Law TeamUpdated 04/01/2024 06:58

Judgement for the case Skipton BS v Clayton

Table Of Contents

  • Defendant bought a property from X at a discounted price on the grounds that X would have a lease for life.

  • Defendant then got a mortgage from Plaintiff (without X’s knowledge) and defaulted. Defendant had fraudulently told Plaintiff that the property was vacant and Plaintiff had inspected it and come to that conclusion.

  • Plaintiff sued Defendant and X for possession.

  • CA held that since X did have a lease (exclusive possession etc made out), Plaintiff could not succeed against X.  

Nourse LJ

  • Where A is the legal owner and gets a mortgage loan from B, and C, who has a beneficial interest, gives C reasonable grounds for believing that he consents, C is estopped from claiming a beneficial interest that overrides that of the mortgagee. See Henning and Cann.

  • However, here there was no consent.

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