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Orders for sale

Enforcement of charges by sale s 14 of the 1996 Act

Two first instance decisions involving similar principles but with very different results.

First case: Edwards v Lloyds Bank plc
[2004] EWHC 1745 (Ch)

Mrs Edwards applied to vacate a caution placed on the registered title of the family home by Lloyds Bank. The property had been held jointly by herself and her husband subject to a mortgage, and on divorce her husband was ordered to transfer the legal estate and his beneficial interest to her, subject to the mortgage. He disappeared and the transfer was never signed. It subsequently transpired that unknown to her he had granted a second mortgage to Lloyds Bank, by forging her signature on the mortgage deed. The Bank subsequently sought to enforce the mortgage.

Park J held that the mortgage deed was not a nullity but was effective to charge the forgers beneficial interest in the property taking effect as an equitable mortgage (applying First National Bank plc v Achampong [2003] EWCA Civ 487). The order for transfer of the husbands beneficial interest was subject to the Banks charge. ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW

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