Jurisdiction(s):
United Kingdom

England and Wales: Strict approach to vesting orders—s 181 LPA 1925 requires legal entitlement at dissolution; mere intention to transfer insufficient (Lizzium v Crown Estate Commissioners)

Published on: 05 May 2021

Published by a LexisNexis Property expert

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Article summary

Lizzium Ltd (a company incorporated in Jersey) and another company v Crown Estate Commissioners [2021] EWHC 941 (Ch)

What are the practical implications of this case?

This concise decision confirms that, when pursuing a vesting order under s 181 of the LPA 1925, the applicant must be able to demonstrate that, as at the date of the company’s dissolution, they already held a legal right or entitlement to the land. Such entitlement may arise from a binding, enforceable contract. By contrast, showing only a settled intention to transfer the property to the applicant is inadequate, as intention alone does not establish a legal right. The ruling underscores the need to examine closely the precise nature of the applicant’s relationship with the property at the point of dissolution, and to verify that any claimed entitlement had crystallised into a legal right by that date...

What was the background?

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