L granted Webb a legal lease for seven years, the lease was overriding. The lease also granted to Webb an option to purchase the fee simple reversion. No notice or caution was entered on the register to protect Webb’s option. The fee simple was sold to Pollmount Ltd, who claimed that the option was not binding on it.
Ungoed Thomas J held that Webb was actually occupying the leased property at the time of the sale. Therefore his option was an overriding interest. The interests of a person in actual occupation are not limited to any type e.g. tenant/estate owner, but refer to all types. It satisfies Russel LJ’s test as quoted by Lord Hodson above, that the right (to purchase) is ‘capable of enduring through different ownerships of the land according to normal conceptions of title to real property.’