Credit and Mercantile plc v Wishart

Mortgage – Equitable interest. The judge had dismissed a claim by the defendant, W, to have an overriding interest enforceable against the claimant based on an entitlement in equity to ownership of a property and, by reason of such overriding interest, to be entitled to the proceeds of sale. The Court of Appeal, Civil Division, in dismissing the defendant's appeal, held, inter alia, that the judge had been right to hold that the defendant had been precluded, by operation of the principle in Brocklesby v Temperance Permanent Building Society and others ([1895-9] All ER Rep Ext 2099), from maintaining that he had a beneficial interest in relation to the property with potential to have priority over the security interest of the claimant and, hence, that he could not claim to have an overriding interest as against the claimant.

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