Jurisdiction(s):
United Kingdom

Off-plan purchasers’ equitable liens: flat-specific extent, priority over mortgagee, and 'signature' under LP(MP)A 1989 (Williams v Alter Domus, EWHC 2023, England and Wales)

Published on: 27 July 2023

Published by a LexisNexis Restructuring & Insolvency expert

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Article summary

Williams and another (as the Joint Administrators of Signature Living Residential Ltd) v Alter Domus Trustees (UK) Ltd (formerly Cortland Trustees Ltd) [2023] EWHC 1820 (Ch), [2023] All ER (D) 94 (Jul)

What are the practical implications of this case?

This decision offers a clear demonstration of how a purchaser’s equitable lien over property can sit alongside, and potentially compete with, other forms of security. The court explores key aspects of equitable liens in the setting of buyers of off-plan apartments, including whether each purchaser’s lien is geographically confined to the specific footprint of the relevant flat. These points are worked through by reference to the different purchasers involved, providing practical guidance on scope and priority issues.

The judgment also examines, from para 38, what counts as a ‘signature’ for the purposes of LP(MP)A 1989, s 2. Recent authorities—such as Neocleous v Rees [2019] EWHC 2462 (Ch), which recognised that an automatically generated e-mail footer may amount to a ‘signature’—are considered. The court in this case underscores the breadth of that concept: the words ‘signed for and on behalf of the buyer’, even without a manuscript signature, were held to amount to a signature and to comply with LP(MP)A 1989...

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