Alliance and Leicester v Slayford [2001] 33 HLR 743

Court: Court of Appeal

Basic Facts: One party in a jointly owned property declared bankruptcy, complicating the situation for the other party who held a beneficial interest.

Issue: What happens when one party becomes bankrupt but another has a beneficial interest in the property?

Held: The court held that a mortgagee’s right to possession was not affected by the mortgagor’s bankruptcy, reaffirming the priority of the lender's security.

• (Peter Gibson LJ):

• The creditor can seek alternative remedies, like using the Insolvency Act 1986 to obtain an order of sale, even without possession.

• Significance: Not considered an abuse of process.