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United Bank of Kuwait plc v Sahib

[1997] Ch 107

Case summary last updated at 09/01/2020 17:06 by the Oxbridge Notes in-house law team.

Judgement for the case United Bank of Kuwait plc v Sahib

S mortgaged his house to P with the necessary deed, registration etc, and sought a declaration that it had priority over D who had agreed a mortgage informally, without writing etc. CA held that P’s interest took priority, because s.2 of the LP(MP)A 1989 stated that mortgage contracts had to be written down to be valid. In the absence of a written contract, D’s mortgage is invalid and there was no basis on which any estoppel or constructive trust could operate to defeat or take priority over the plaintiff's charging order. 
Peter Gibson LJ: Proprietary estoppel might apply between S and D, but cannot be used between D and P. 

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