Santander UK plc v Fletcher and another

Mortgage – Possession of mortgaged property. In earlier proceedings, a judge had set aside a legal mortgage in respect of the appellant's home (the property), where, as a result of a fraud committed by her son (A), it had been mortgaged to the respondent bank (Santander) for a much larger loan than she had been led to believe. However, the appellant still stood to lose the property on account of the judge's finding that Santander had an equitable charge in respect of it. The Chancery Division, in dismissing the appellant's appeal in respect of Santander's mortgage possession claim, held that, notwithstanding that the legal charge had been set aside, Santander had acquired an equitable charge over A's beneficial interest in the property, because, prior to signing the mortgage application, the appellant had made him a joint owner of the property. Accordingly, the judge had not erred in holding that the declaration of trust in the TR1 form was conclusive, and that the property had to be sold and half the proceeds had to be used to pay off A's indebtedness to Santander.

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