GDL Land Law - Paper 2

Helena owns a registered freehold property. She agrees to sell it to Ivan for £300,000. Before completion, Helena grants a lease to James for 3 years at market rent. Helena also borrows £50,000 from KleinBank, secured by a legal charge on the property, which is registered. On completion, Ivan pays the full purchase price and is registered as proprietor. He discovers: (i) James's lease; (ii) the KleinBank charge; and (iii) that Helena's neighbour, Lisa, has been using a footpath across the property for 15 years. Advise Ivan on whether these interests bind him.

Critically evaluate the law on mortgages, focusing on the rights and remedies of the mortgagee. Discuss the power of sale under s.101 Law of Property Act 1925, the duty to obtain the best price reasonably obtainable, the right to possession, and the equitable jurisdiction to grant relief to mortgagors. Assess whether the law adequately balances the interests of lenders and borrowers, particularly in the context of residential mortgages.

Martin and Nadia are a married couple who own their home as beneficial joint tenants. Martin runs a business and borrows £100,000 from PrimeLend Bank, secured by a charge on the family home. Nadia signs the mortgage documents after a brief meeting with PrimeLend's in-house solicitor, who explains the documents quickly. Nadia later claims she did not understand the nature of the transaction and was pressured by Martin to sign. Martin defaults on the loan and PrimeLend seeks possession. Nadia argues the mortgage should be set aside on grounds of undue influence. Advise Nadia on her prospects, considering Royal Bank of Scotland v Etridge (No 2) (2002).

Discuss the operation of proprietary estoppel in land law. Evaluate the requirements of assurance, reliance, and detriment as established in Thorner v Major (2009) and the flexible approach to remedies in Jennings v Rice (2003). Consider the relationship between proprietary estoppel and constructive trusts, and assess whether proprietary estoppel has become too uncertain in its application.

Oliver owns a registered freehold estate. He grants a 15-year lease to Petra for a shop. The lease contains a covenant against assignment without Oliver's consent (not to be unreasonably withheld). Petra wishes to assign the lease to Quinn, who plans to convert the shop into a tattoo parlour. Oliver refuses consent, stating the neighbourhood is unsuitable for a tattoo parlour. The lease also contains a repairing covenant requiring Petra to keep the premises in good repair. Petra has neglected repairs, and the roof is leaking. Oliver wants to forfeit the lease for breach of the repairing covenant. Meanwhile, Petra has sublet part of the premises to Rosa without Oliver's knowledge, in breach of a covenant against subletting. Advise Oliver and Petra on their rights.