Re Sir Thomas Spencer Wells [1933] Ch 29

Court of Appeal

Basic Facts: In 1899, a company mortgaged leasehold properties. By 1910, the company was liquidated, and the equity of redemption became valuable. The Crown claimed it as bona vacantia, while mortgagees argued it was theirs free from redemption.

Issue for the Court: When can the equity of redemption be applied?

Held : The court held that the intention behind a trust is paramount when determining the rights of beneficiaries. Leasehold mortgages are subject to bona vacantia. The Crown can redeem the property if the equity of redemption remains. Agreements preventing redemption are void, as equity upholds the mortgagor’s right to redeem unless otherwise specifically waived.