Overriding interest
Encyclopedia
Overriding interest is an English land law
concept. The general rule in registered conveyancing
is that all interests and rights over a piece of land have to be written on the register
entry for that land, otherwise, when anyone buys that piece of land, the interests won't apply to the purchaser, and the rights will be lost. Overriding interests are the exception to this general rule. Overriding interests need not be registered to bind any new owner.
Overriding interests were introduced by section 70 of the Land Registration Act 1925
, now replaced by the Land Registration Act 2002
Schedules 1 and 3. However, case law based on the 1925 provisions is generally thought to still be good law.
In a leading case, Williams & Glyn Bank v Boland
, a wife successfully claimed an overriding interest in a property which her husband had mortgaged to support a failing business. As she didn't have a legal interest in the property, but had made substantial contributions to the purchase and was in actual occupation of the property, her overriding interest was upheld when the bank tried to take possession.
There has been some recent academic concern over the effect on overriding interests of the Human Rights Act 1998
. If a purchaser were to buy property, only to find themselves subject to numerous restrictive or expensive obligations that they did not and could not have known about, they may have some relief courtesy of Article 8 of the European Convention on Human Rights
.
English land law
English land law concerns the law of real property in England and Wales. Because of its heavy historical and social significance, land is a major part of the wider English property law....
concept. The general rule in registered conveyancing
Conveyancing
In law, conveyancing is the transfer of legal title of property from one person to another, or the granting of an encumbrance such as a mortgage or a lien....
is that all interests and rights over a piece of land have to be written on the register
HM Land Registry
Land Registry is a non-ministerial government department and executive agency of the Government of the United Kingdom. It was created in 1862 to register the ownership of land and property in England and Wales...
entry for that land, otherwise, when anyone buys that piece of land, the interests won't apply to the purchaser, and the rights will be lost. Overriding interests are the exception to this general rule. Overriding interests need not be registered to bind any new owner.
Overview
Overriding interest was created because it was perceived that for several classes of interest, it would be unreasonable to expect such interests to be registered. Such interests include short term leases, seen as being too minor an interest to burden with the bureaucracy of registration. They include the rights of people in actual occupation, perhaps unaware of their legal rights. They also include public rights of way, as it wasn't clear who should be made to register them.Overriding interests were introduced by section 70 of the Land Registration Act 1925
Land Registration Act 1925
The Land Registration Act 1925 was a act of Parliament in the United Kingdom that codified and extended the system of land registration in England and Wales...
, now replaced by the Land Registration Act 2002
Land Registration Act 2002
The Land Registration Act 2002 is an Act of the Parliament of the United Kingdom which repealed and replaced previous legislation governing land registration, in particular the Land Registration Act 1925, which governed an earlier, though similar, system...
Schedules 1 and 3. However, case law based on the 1925 provisions is generally thought to still be good law.
In a leading case, Williams & Glyn Bank v Boland
Williams & Glyn Bank v Boland
Williams & Glyn's Bank v Boland [1980] is a House of Lords judgment in English property law on overriding interest.-Facts:Mr Michael Boland and Mrs Julia Sheila Boland lived on Ridge Park, Beddington, Surrey. Mr Boland, registered owner of the house, borrowed money from the bank for his building...
, a wife successfully claimed an overriding interest in a property which her husband had mortgaged to support a failing business. As she didn't have a legal interest in the property, but had made substantial contributions to the purchase and was in actual occupation of the property, her overriding interest was upheld when the bank tried to take possession.
There has been some recent academic concern over the effect on overriding interests of the Human Rights Act 1998
Human Rights Act 1998
The Human Rights Act 1998 is an Act of Parliament of the United Kingdom which received Royal Assent on 9 November 1998, and mostly came into force on 2 October 2000. Its aim is to "give further effect" in UK law to the rights contained in the European Convention on Human Rights...
. If a purchaser were to buy property, only to find themselves subject to numerous restrictive or expensive obligations that they did not and could not have known about, they may have some relief courtesy of Article 8 of the European Convention on Human Rights
European Convention on Human Rights
The Convention for the Protection of Human Rights and Fundamental Freedoms is an international treaty to protect human rights and fundamental freedoms in Europe. Drafted in 1950 by the then newly formed Council of Europe, the convention entered into force on 3 September 1953...
.
See also
- Land Registration Act 2002Land Registration Act 2002The Land Registration Act 2002 is an Act of the Parliament of the United Kingdom which repealed and replaced previous legislation governing land registration, in particular the Land Registration Act 1925, which governed an earlier, though similar, system...
- Leasehold estateLeasehold estateA leasehold estate is an ownership of a temporary right to land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord....
- Equitable interestEquitable interestAn equitable interest is an "interest held by virtue of an equitable title or claimed on equitable grounds, such as the interest held by a trust beneficiary." The equitable interest is a right in equity that, if violated , is subject to satisfaction...
- Overreaching InterestOverreaching interestOverreaching Interest is a term in English land law.Overreaching can only exist where a trust is in existence and a property is sold. The occupiers of a property in such a situation cannot then claim that their occupation of the property is an overriding interest, as the joint trustees have brought...