Mortgage Corporation v Shaire [2001] 3 WLR 639

Written By Nicolas Heyes

Chancery Division

Basic Facts: D and X were joint proprietors. After X’s death, D and F were joint proprietors, with F forging signatures. C sought possession of D’s home under TLATA (Trusts of Land and Appointment of Trustees Act) 1996.

Issue for the Court: Can the right to occupy be overridden by a mortgage lender?

Held: The court ruled that the rights of beneficiaries under a trust should be considered in mortgage enforcement actions, emphasizing a more balanced approach to lender and beneficiary rights.

  • Jonathan Parker J held that TLATA 1996 prioritizes the mortgage lender’s interest over the right to occupy unless an express agreement or specific statutory provision dictates otherwise.

Nicolas Heyes
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