NRAM Plc v Evans and another

Land registration – Rectification of register. The proceedings concerned a dispute as to whether or not a loan advanced by the claimant's predecessor (the bank) to the defendants in 2005 was secured on their property (the property). The issue was whether a charge, securing a previous loan to the defendants, who were made bankrupt, was effective to secure the 2005 loan. The Chancery Division held that the charge, on its terms, was so effective to secure the 2005 loan on the property. The terms of the mortgage conditions, which applied to the charge, were sufficiently wide and clear to include the 2005 loan. On the defendants' bankruptcy, their estate vested in the Official Receiver as trustee, subject to the bank's charge. It was further held that the bank had made a distinct mistake in issuing form e-DS1 to the Land Registry, acknowledging that the property was no longer charged, in circumstances where the 2004 loan had been redeemed. Accordingly, it was entitled to be re-registered as proprietor of the charge which secured the 2005 loan.

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