Bristol and West Building Society v Henning [1985] 1 WLR 778

Court: Court of Appeal

Basic Facts: H and W lived together, contributing to the purchase and upkeep of a house in H’s name. They later bought another property, which W contributed to. H left and initiated possession proceedings against W, who claimed a beneficial interest.

Issue for the Court: Does an overriding interest arise from actual occupation?

Held: The court found that if a party consents to a mortgage knowing it is for the purpose of purchasing a home, they are presumed to subordinate their equitable interest to the mortgage.

Browne-Wilkinson LJ

• No Overriding Interest:

• W had full knowledge of and consented to the mortgage, so she could not claim a right to remain in the property over the mortgagee’s interest.

• The common intention was that H had the power to grant the mortgage, which had priority over any beneficial interests.